Latest news with #CoinbaseOne
Yahoo
16-05-2025
- Business
- Yahoo
Meet the Newest Stock in the S&P 500: It Has Soared 640% Since 2023 and Is Still a Buy in 2025, According to Certain Wall Street Analysts
Coinbase Global on May 19 will be added to the S&P 500, an index commonly viewed as the single best gauge for the entire U.S. stock market. Following inclusion in the S&P 500, companies have historically seen their shares prices increase by an average of 12% during the next year. Coinbase runs the largest U.S. cryptocurrency spot exchange, and the company will acquire the world's largest cryptocurrency options exchange Deribit. 10 stocks we like better than Coinbase Global › Coinbase Global (NASDAQ: COIN) will be added to the S&P 500 (SNPINDEX: ^GSPC) before the stock market opens on Monday, May 19. The stock has rocketed 643% higher since January 2023, but certain Wall Street analysts still anticipate substantial gains in the next year. Joseph Vafi at Canaccord Genuity and Devin Ryan at Citizens JMP have set Coinbase with target prices of $400 per share. That implies 52% upside from the current share price of $263. Read on to learn more about this cryptocurrency stock. The S&P 500 is regarded as the best barometer for the overall U.S. stock market. The index tracks 500 large companies that account for 80% of domestic equities by market value. To be eligible for inclusion, companies must meet certain criteria, including GAAP profitability, a minimum market capitalization of $20.5 billion, and a sufficiently liquid stock. Over the past decade, 177 companies were added to the S&P 500, meaning about one-third of the index was replaced. Those stocks returned an average of 12% during the year following their inclusion. In this situation, Coinbase will join the S&P 500 on May 19, so statistics say the stock will advance 12% over the next year from its closing price on that day. Investors may wonder why stocks tend to increase after joining the S&P 500. That answer lies in the many products linked to the index. Investment vehicles like S&P 500 ETFs must buy Coinbase stock upon its inclusion to ensure their product reflects the composition of the underlying index. That buying activity can cause price appreciation. Similarly, companies may benefit from greater visibility after joining the S&P 500, meaning investors may be more likely to recognize and buy shares of the stock. However, tailwinds related to inclusion in the index are temporary. How Coinbase stock performs in the long run depends on financial fundamentals like revenue and earnings. Coinbase operates the largest cryptocurrency exchange in the United States and the third largest globally as measured by trading volume. The company earns transaction revenue by facilitating the buying and selling of cryptocurrency among retail and institutional investors. Coinbase also earns services revenue from storage, staking, and stablecoin products, as well as subscription fees from its Coinbase One platform. Coinbase reported lackluster results in the first quarter. Revenue rose 24% to $2 billion on strong momentum in subscription and services, which itself was driven by Coinbase One and its revenue share agreement with Circle, the issuer of stablecoin USDC. A sequential drop in transaction volume prevented revenue from growing faster. Meanwhile, non-GAAP earnings fell 23% to $1.94 per diluted share due to a sharp increase in operating expenses. Coinbase plans to acquire Deribit, the largest cryptocurrency options exchange, for $2.9 billion in cash and stock. Options are derivatives that give the owner the right (but not the obligation) to buy or sell an asset at a certain price over a specified period. It is reasonable to assume Bitcoin and Ethereum options will become more popular as the cryptocurrency market expands. The Deribit acquisition positions Coinbase to benefit. Morningstar expects the cryptocurrency market to hit $7.8 trillion by 2035. That implies 136% upside from its current value of $3.3 trillion, which itself implies 9% annualized growth over the next decade. That seems plausible as it roughly matches growth in the last five years. And it's reasonable to think Coinbase's earnings will grow at a similar pace, perhaps slightly faster as the company gains share in derivatives. In the more immediate future, Wall Street expects Coinbase's earnings to increase at 19% annually through 2026. That consensus makes the current valuation of 49 times earnings look somewhat expensive. Personally, I think investors should wait for a better entry point before buying shares. In the meantime, purchasing a spot Bitcoin ETF is a good way to get exposure to cryptocurrency. Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coinbase Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy. Meet the Newest Stock in the S&P 500: It Has Soared 640% Since 2023 and Is Still a Buy in 2025, According to Certain Wall Street Analysts was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Coinbase Q1 Earnings Beat, Revenues Miss Estimates, Volumes Rise Y/Y
Coinbase Global, Inc. COIN reported first-quarter 2025 net operating earnings per share of $1.94, which beat the Zacks Consensus Estimate by 4.9%. The bottom line increased 17.6% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The quarterly results benefited from higher consumer and institutional transaction revenues and crypto asset prices. Further, the continued growth of Coinbase One subscribers and improved adjusted EBITDA added to the upside. Escalating expenses were an offset. Total trading volume increased 26% year over year to $393 million in the reported quarter. The Zacks Consensus Estimate was pegged at $388 revenues of $2 billion missed the Zacks Consensus Estimate by 4.1%. The top line increased 24% year over year on higher Transaction revenues, Subscription and services revenues and other revenues. Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote Total transaction revenues increased 18.2% year over year to $1.3 billion in the quarter. The growth was due to an increase in consumer transaction revenues, institutional transaction revenues and other transaction revenues. The Zacks Consensus Estimate was pegged at $1.3 subscription and services revenues increased 36.3% year over year to $698.1 million in the reported quarter. The growth was driven by higher Stablecoin revenues. The Zacks Consensus Estimate was pegged at $698 EBITDA was $929.9 million in the reported quarter, which fell 8.3% from the year-ago quarter. Total operating expenses increased 51.5% to $1.3 billion in the quarter due to higher sales and marketing and general and administrative expenses. Coinbase exited the first quarter with cash and cash equivalents of $8.1 billion as of March 31, 2025, down 5.5% from 2024-end. As of March 31, 2025, long-term debt increased 4.7% from 2024-end to $4.2 billion. Shareholders' equity was $10.7 billion at first-quarter 2025-end, up 1.9% from 2024-end. Net cash used in operating activities was $182.7 million in first-quarter 2025 versus net cash provided by operating activities of $411.5 million in the year-ago quarter. Coinbase expects subscription and services revenues to be in the range of $600-$680 million. It expects growth in Stablecoin revenues to be offset by a decline in blockchain rewards revenues due to lower asset expects technology and development and general and administrative expenses to be in the range of $700-$750 million, reflecting growth in variable expenses related to elevated trading volume as well as payroll taxes and company projects sales and marketing to be between $215 million and $315 million. Coinbase expects sales and marketing expenses to increase quarter over quarter to $235-$375 million due to potential variability in performance marketing and USDC assets in the product suite, which drives USDC rewards. Coinbase expects transaction expenses to be in the mid-to-high teens as a percentage of net revenues. COIN currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Bread Financial Holdings' BFH operating income of $2.86 per share for the first quarter of 2025 beat the Zacks Consensus Estimate by 36.2%. The bottom line improved 4.8% year over year. Revenues decreased 2.1% year over year to $970 million. The top line, however, beat the consensus estimate by 1.3%.Credit sales of $6.1 billion increased 1%, driven by higher general-purpose spending and overall transaction volume. Average loans of $18.2 billion decreased 2%, primarily due to the macroeconomic environment. Pre-tax pre-provision earnings decreased 3.1% year over year to $493 million due to lower net interest Express Company AXP reported first-quarter 2025 earnings per share (EPS) of $3.64, which beat the Zacks Consensus Estimate by 5.5%. The bottom line climbed 9% year over year. Total revenues net of interest expense amounted to $16.97 billion, which missed the Zacks Consensus Estimate by 0.2%. The top line improved 7% year over year in the quarter under volumes of $439.6 billion rose 5% year over year in the first quarter, driven by higher U.S. consumer spending. The figure, however, missed the Zacks Consensus Estimate by 1.2%. Total interest income of $6.1 billion increased 6% year over year and beat the consensus mark by 1%. Provision for credit losses declined 9% year over year to $1.2 billion due to a modest net reserve Express anticipates revenues to increase between 8% and 10% in 2025 from the 2024 level of $65.9 billion. Management expects EPS in the range of $15-$15.50, the midpoint of which indicates an improvement of 8.9% from the 2024 level of $ Financial, Inc. VIRT reported first-quarter adjusted EPS of $1.30, which beat the Zacks Consensus Estimate by 9.2%. The bottom line soared 71.1% year over year. Adjusted net trading income of $497.1 million advanced 35.5% year over year. The top line surpassed the consensus estimate by 4.7%.Adjusted EBITDA was $319.9 million, which climbed 57.7% year over year and came higher than our estimate of $246.2 million. Adjusted EBITDA margin improved 910 basis points year over year to 64.4%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP) : Free Stock Analysis Report Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
05-05-2025
- Business
- Globe and Mail
Should You Add COIN Stock to Your Portfolio Ahead of Q1 Earnings?
Coinbase Global Inc. COIN is expected to witness an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 8. The Zacks Consensus Estimate for COIN's first-quarter revenues is pegged at $2.2 million, indicating a 33.4% increase from the year-ago reported figure. The consensus estimate for earnings is pegged at $2.06 per share. The Zacks Consensus Estimate for COIN's first-quarter earnings has moved 2.4% down in the past seven days. The estimate suggests a year-over-year increase of 23.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) COIN's Decent Earnings Surprise History COIN's earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and matched in one, the average surprise being 46.15%. What the Zacks Model Unveils for COIN Our proven model does not conclusively predict an earnings beat for Coinbase this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat. This is not the case, as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Earnings ESP: COIN has an Earnings ESP of -5.23%. This is because the Most Accurate Estimate of $1.93 is pegged lower than the Zacks Consensus Estimate of $2.06. Coinbase Global, Inc. Price and EPS Surprise Zacks Rank: COIN currently has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Factors Likely to Shape COIN's Q1 Results The first-quarter performance of Coinbase is likely to have benefited from increased trading volume due to higher volatility. Crypto trading remains a major revenue driver for COIN. The Zacks Consensus Estimate for trading volume is pegged at 404 million, indicating a 29.4% increase from the year-ago reported quarter. Both consumer and institutional trading are likely to have increased in the to-be-reported quarter. The intensifying focus on international expansion, growth of derivatives and spot trading and integration of USD Coin into the crypto economy are likely to have fueled the two largest revenue streams — trading fees and Stablecoins. Higher crypto asset volatility, coupled with improved crypto asset prices, is likely to have driven the growth of Coinbase One subscribers as well as unit inflows across staking, custody, and USDC assets. The Zacks Consensus Estimate for transaction revenues is pegged at $1325 million, indicating an upside of 23% from the year-ago reported quarter. Coinbase also expects transaction expenses to be in the mid-to-high teens as a percentage of net revenues. Subscription and services revenues are likely to have been aided by blockchain rewards revenues, Stablecoin revenues and Coinbase One subscription revenues. A gradual shift to subscription and services revenues, which ensures more stability, from transaction fee revenues is likely to have driven an upside. Coinbase expects first-quarter subscription and services revenues to be in the range of $685-$765 million. The Zacks Consensus Estimate is pegged at $707 million. Coinbase expects technology and development and general and administrative expenses to be in the range of $750-$800 million, which indicates a rise in variable expenses related to elevated trading volume as well as payroll taxes and headcount. An increase in digital marketing spending is likely to have increased sales and marketing expenses. COIN projects sales and marketing expense to be between $235 million and $375 million due to potential variability in performance marketing and USDC assets in the product suite. Technology investments aimed at improving operational efficiency, combined with disciplined cost control, are likely to have led to lower expenses and enhanced profit margins. COIN expects technology & development and general & administrative expenses to increase to $690-$730 million. COIN's Price Performance & Valuation The stock underperformed the industry, sector and the S&P 500 in the first quarter of 2025. The stock is trading at a price-to-earnings ratio of 22.47, higher than the industry's 15.29. Shares of Robinhood Markets HOOD and Interactive Brokers Group, Inc. IBKR, two other crypto-oriented stocks, are also trading at multiples higher than the industry average. Investment Thesis Coinbase looks poised to benefit from higher crypto asset volatility and prices, and increased adoption of its assets in a pro-crypto environment. It has been deepening its roots in international markets. Strengthening banking connections, locking of new licenses and expanding tailor-made product ranges to meet unique customer preferences should help COIN grow rapidly in the long run. A gradual shift to subscription and services revenues from transaction fee revenues is likely to have ensured stability in revenues. Coinbase has been investing in infrastructure and foundational platforms like Base, designed to optimize Ethereum's infrastructure by increasing the network's speed and affordability. The rise in stablecoin adoption has been driving Stablecoin revenues. The continued growth of Coinbase One subscribers is expected to have further boosted the company's revenues. COIN remains focused on maintaining a low-cost structure. However, return on equity, signifying the company's ability to use shareholders' funds to generate returns, compares unfavorably with the industry average. COIN's debt level has been increasing but compares favorably with the industry average. Also, an improvement in times interest earned, which compares favorably with the industry average, offers some respite. Cash and cash equivalents have been improving. What Should Investors Do Now With COIN Stock? The Trump administration is swiftly advancing its efforts to fulfill its vision of establishing the United States as the world's leading hub for cryptocurrency innovation. In a pro-crypto operating environment, COIN, the crypto leader, is poised to gain from its efforts to accelerate growth, increase market share in spot trading on consumer and institutional trading platforms and improve trading experience, along with continued innovation and cost-control initiatives. However, given its premium valuation and weak return on equity, new investors can wait for some more time before taking a position in the stock. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Yahoo
16-04-2025
- Business
- Yahoo
Cathie Wood buys $22 million battered tech stock amid tariffs
Cathie Wood, chief of Ark Investment Management, frequently adjusts her top positions, adding to a holding when the stock falls and selling when it rises. Last week, she made some eye-catching buys as markets swung on President Donald Trump's shifting tariff policies. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Wood's flagship fund, the Ark Innovation ETF () , is down 19.7% year-to-date as of April 14, while the S&P 500 and the Nasdaq Composite lost 8.1% and 12.8% during the same period, respectively. The ETF has wiped out the post-election gains since last November. Opinions on Wood vary. To her supporters, she is a visionary with a remarkable 153% return in 2020. However, her longer-term performance has raised doubts about her aggressive, opportunistic approach. As of April 14, Ark Innovation ETF, with $5 billion under management, has delivered an annualized three-year return of negative 8.47% and a five-year return of negative 0.11%. In comparison, the S&P 500 index has a three-year annualized return of 8.38% and a five-year return of 15.74%. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' the 10 years ending in 2024, the Ark Innovation ETF erased $7 billion in shareholder wealth, according to a recent analysis by Morningstar's Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in the ranking. Wood recently questioned Trump's tariffs on the "In The Know with Cathie Wood' channel. "Things do feel a bit chaotic out there and the markets are convulsing as a result. There's a lot of uncertainty," she said. Wood warned that if Trump's tariff plan isn't managed carefully, it could trigger a bear market or even a recession. Still, she's hopeful things will calm down as the negotiations move forward. 'Trump wants to be one of the greatest presidents not going to get there by throwing the economy into a recession and the stock market into a bear market,' she said. Not all investors share Wood's optimism. The Ark Innovation ETF has seen a net outflow of $2.09 billion over the past 12 months through April 11, according to ETF research firm VettaFi. On April 7, 8, and 10, Wood's Ark Innovation ETF bought 128,093 shares of Coinbase Global Inc. () . That chunk of stock is valued at roughly $22.6 million. The purchase was made as the stock slid to its lowest since last September. Coinbase operates the largest U.S. cryptocurrency exchange and generates revenue through transaction fees from cryptocurrency trading on its platform. Last year, the stock gained 42.7%, driven by higher crypto asset prices and continued Coinbase One subscriber growth. Coinbase's stock price is closely related to crypto prices. The stock lost 29% year-to-date as cryptocurrencies plunged. Trump's tariffs have raised recession fears, which could make riskier assets like bitcoin less appealing to investors. Wood's last Coinbase stock purchase was in March, when she bought 38,865 shares for roughly $8 million. That purchase followed Trump's announcement that his administration is working to create a Crypto Strategic Reserve that will include five cryptocurrencies: bitcoin, ether, XRP, solana, and cardano. Fund manager buys and sells Legendary fund manager sends blunt message on stock tumble Veteran fund manager unveils 4 ways market could rebound Fund manager who forecast S&P 500 crash unveils surprising update Coinbase is one of Wood's biggest holdings in her portfolio. As of Dec. 31, 2024, she held $753.5 million in Coinbase, making up 6.24% of all the Ark funds. The stock ranked as the third-largest position, according to 13-F filings tracked by WhaleWisdom. Alongside the Coinbase buy, Wood also added 340,959 shares of Nvidia, 50,627 shares of Amazon, and 95,699 shares of Tempus AI last in to access your portfolio
