Latest news with #CoinbaseOne
Yahoo
5 days ago
- Business
- Yahoo
Coinbase Crypto Momentum Stalls, Valuation Stretches: Cut to Sell at Compass Point
Coinbase (COIN) has been downgraded to a sell rating by Compass Point, which also cut its year-end price target from $330 to $248, citing weaker-than-expected earnings and fading interest in crypto equities as key risks. COIN is trading modestly higher on Monday at $316 following last week's earnings-related 18% plunge. 'While we remain constructive on the current crypto cycle, we expect a choppy 3Q alongside weak August/September seasonality and waning retail interest in crypto treasury stocks,' analysts wrote. 'We also expect increasing stablecoin competition to weigh on both COIN and CRCL's valuations in 2H25.' Coinbase missed expectations for second-quarter results, and early third-quarter trends aren't looking much better. Subscription and services revenue, a metric investors see as a reliable income stream, came in 8% below Wall Street estimates in Q2. The midpoint of the company's Q3 forecast is also 5% below consensus. ''Other S&S revenue' was a key contributor to COIN's 2Q/3Q miss,' Compass Point wrote, pointing to a sharp quarter-over-quarter decline in Coinbase One and other tech-related fees — segments many investors had hoped would drive long-term growth. Compass Point's downgrade comes as the crypto market loses momentum despite broader stock markets recovering after last week's dip. Bitcoin (BTC) and ethereum (ETH) have struggled to gain ground, and retail investors appear to be pulling back from 'TreasuryCo' stocks — companies holding large amounts of BTC or other cryptos on their balance sheets. This includes Coinbase and Strategy (MSTR), the latter of which recently slowed its bitcoin buying pace and shifted toward raising funds through preferred equity rather than stock offerings. The analysts flagged that elevated leverage in crypto markets poses a further risk. July's rally was fueled by aggressive trading, but with open interest rebounding after a short dip in liquidations, a deeper sell-off could trigger another round of forced selling. Valuation is also a concern. Despite the weak Q2 results, COIN shares rallied 56% from May to July. Compass Point warns that 'COIN is still trading at 44x annualized 3Q25E Street EBITDA forecast,' which it believes is too high given headwinds in retail trading, competition from ETFs and DeFi, and limited near-term regulatory breakthroughs. Compass Point was also doubtful the CLARITY Act — a bill seen as key to regulatory reform — would pass this year. 'We're more skeptical towards a market structure bill passing this year,' the firm said, projecting movement in early 2026 instead. Coinbase has floated the idea of offering stock trading to users, but analysts are unconvinced it will be a meaningful revenue stream, especially with competitors like Robinhood already far ahead. 'Under a backdrop of weak crypto performance, we see COIN's premium valuation compressing back towards its prior range,' the report al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
01-08-2025
- Business
- Yahoo
Coinbase nails Wall Street forecasts in surprising earnings
Coinbase nails Wall Street forecasts in surprising earnings originally appeared on TheStreet. Coinbase (Nasdaq: COIN), the largest crypto exchange in the U.S., released its financial results on July 31. During Q2 2025, the exchange generated $1.5 billion in total revenue, down 26% quarter-over-quarter (QoQ) and up 0.32% year-over-year (YoY). It recorded $1.4 billion in net income, up 216% QoQ and up 396.9% YoY. The platform registered $512 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), down 55% QoQ and 14% QoQ. Transaction revenue stood at $764 million, down 39% QoQ and down 2% YoY. Subscription and services revenue stood at $656 million, down 6% Q/Q and up 9% YoY. The platform attributed the figure to growth in average Circle's (NYSE: CRCL) USDC stablecoin balances, native units staked, and record high average Prime Financing balances. Coinbase generated earnings per share (EPS) of $5.14 in operating expenses in Q2 stood at $1.5 billion, up 15% QoQ and up 36% YoY. The exchange ended the quarter with $1.8 billion in its crypto asset investment portfolio. Stablecoin revenue in Q2 stood at $332 million. As of June 30, 2025, Coinbase's total assets stood at $23.4 million and its total liabilities stood at $11.3 million. The exchange held 11,776 Bitcoin worth $1.3 billion by the end of Q2, compared to 9,267 BTC in Q1. Coinbase couldn't beat Zacks estimates However, Coinbase failed to beat revenue estimates by the investment research firm Zacks, which expected the platform's Q2 earnings to beat estimates on the tailwind offered by higher crypto trading volume, Deribit acquisition gains, global expansion, USDC stablecoin integration, and Coinbase One subscriptions. Zacks had estimated the platform's revenue to be $1.5 billion. During Q1 2025, Coinbase's total revenue stood at $2 billion, net income at $66 million, and adjusted EBITDA at $930 in 2012, Coinbase became a publicly traded company in April 2021. It joined the S&P 500 list in May 2025 — the only crypto stock to find a spot on the hotly contested list so far. The COIN stock closed at $401.86 on July 31. Robinhood beats estimates, Kraken tumbles Robinhood Markets (Nasdaq: HOOD), the trading exchange offering tokenized stocks and cryptocurrencies, registered $989 million in net revenue in Q2, jumping 45% YoY and 6.6% QoQ. Its earnings before interest, tax, depreciation and amortization (EBITDA) stood at $549 million, soaring 82% YoY and 16.8% crypto exchange Kraken, on the other hand, suffered a few financial setbacks during the last quarter. It recorded $411.6 million in total revenue, rising 18% YoY but falling 13% QoQ. Kraken's adjusted EBITDA came in at $79.7 million, falling 7% YoY and registering an even more drastic 57% QoQ dip. Coinbase nails Wall Street forecasts in surprising earnings first appeared on TheStreet on Jul 31, 2025 This story was originally reported by TheStreet on Jul 31, 2025, where it first appeared.
Yahoo
01-08-2025
- Business
- Yahoo
Coinbase gunning to outperform Robinhood on earnings
Coinbase gunning to outperform Robinhood on earnings originally appeared on TheStreet. It's the earnings season, and the latest company to report its quarterly earnings for Q2 2025 is Coinbase (Nasdaq: COIN). Founded in 2012, Coinbase is the largest crypto exchange in the U.S. The company, which went public in April 2021, joined the S&P 500 list in May 2025 — the only crypto stock to be included in the much-coveted list so far. The exchange is slated to release its Q2 financial results on July 31. Zacks, the investment research firm, said the exchange's Q2 earnings may beat estimates, supported by increased crypto trading volume, Deribit acquisition gains, global expansion, USDC stablecoin integration, and Coinbase One subscriptions. The exchange is also very likely to benefit from the pro-crypto agenda of the Donald Trump administration, Zacks added. It estimated Coinbase's Q2 revenue to be $1.5 billion, expecting a 4.3% year-on-year (YoY) growth. The earnings per share (EPS) for Q2 is estimated to be $0.83, a 22.4% YoY decline. Coinbase has already beaten estimates in three of the last four reported quarters and matched in look at the crypto platform's Q1 2025 financial results. The total revenue in Q1 stood at $2 billion, with transaction revenue worth $1.3 billion. The first quarter of the year also saw the Securities and Exchange Commission (SEC) dropping its case against Coinbase. At press time, COIN was exchanging hands at $381.66, up 1.11%. Can Coinbase outdo Robinhood? On July 30, Robinhood Markets (Nasdaq: HOOD), the trading exchange offering cryptocurrencies and tokenized stocks, announced its Q2 financial results, beating estimates. While Zacks estimated Robinhood's Q2 revenue to be $915.2 million, the exchange reported $989 million in revenue — beating estimates by 8%. In contrast to the estimated EPS of $0.31, the exchange reported $0.42 in EPS — beating estimates by 35%. We will know after the closing bell if Coinbase surpasses Robinhood in beating earnings estimates. Coinbase gunning to outperform Robinhood on earnings first appeared on TheStreet on Jul 31, 2025 This story was originally reported by TheStreet on Jul 31, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
29-07-2025
- Business
- Globe and Mail
How Should You Play Coinbase Stock Ahead of Q2 Earnings?
Coinbase Global COIN is set to report second-quarter 2025 results on July 31, after market close. This company beat estimates in three of the last four reported quarters and matched in one. The Zacks Consensus Estimate for COIN's second-quarter revenues is pegged at $1.5 billion, indicating a 4.3% increase from the year-ago reported figure. The consensus estimate for earnings is pegged at 83 cents per share. The Zacks Consensus Estimate for COIN's second-quarter earnings has moved up 1 cent in the past seven days. The estimate suggests a year-over-year decrease of 22.4%. 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 32.71%. What the Zacks Model Unveils for COIN Our proven model predicts an earnings beat for Coinbase this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the odds of an earnings beat. Earnings ESP: Coinbase's Earnings ESP is +12.05%. This is because the Most Accurate Estimate of 93 cents is pegged higher than the Zacks Consensus Estimate of 83 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Coinbase Global, Inc. Price and EPS Surprise Coinbase Global, Inc. price-eps-surprise | Coinbase Global, Inc. Quote Zacks Rank: Coinbase 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 Q2 Results The second-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 235 million, indicating a 4% increase from the year-ago reported quarter. While Institutional trading is likely to have increased, consumer trading is likely to have remained soft in the to-be-reported quarter. The acquisition of Deribit, the top crypto options exchange, is likely to have proved beneficial for Coinbase in the quarter, adding meaningful new revenue streams and boosting its presence among institutional investors. The growing emphasis on international expansion, the rise of derivatives and spot trading, and the deeper integration of USD Coin into the crypto ecosystem are likely to have supported growth in Coinbase's 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. Coinbase's subscription and services revenues were likely bolstered by blockchain rewards, stablecoin-related income and revenue from Coinbase One subscriptions. The ongoing transition from volatile transaction-based income to more stable, recurring revenue streams is likely to have played a key role in driving overall growth. Management estimates an expected growth in stablecoin revenues to be offset by a decline in blockchain rewards revenues owing to lower Ethereum and Solana prices. COIN expects second-quarter subscription and services revenues to be in the range of $600-$680 million. The Zacks Consensus Estimate is pegged at $688 million. An increase in digital marketing spending is likely to have increased sales and marketing expenses. COIN projects sales and marketing to be between $215 million and $315 million due to potential variability in performance marketing, as well as customer USDC balances in Coinbase products. Technology investments aimed at improving operational efficiency, combined with disciplined cost control, are likely to have led to lower expenses and enhanced profit margins. Coinbase expects second-quarter technology and development and general and administrative expenses to be in the range of $700-$750 million, a decline from the previous quarter due to lower variable expenses like infrastructure, customer support and seasonally lower payroll taxes. COIN's Price Performance & Valuation The stock outperformed the industry, sector and the S&P 500 in the second quarter of 2025. Image Source: Zacks Investment Research The stock is trading at a price-to-earnings ratio of 67.49, higher than the industry's 22.12. 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 is well-positioned to benefit from heightened crypto asset volatility, rising prices, and the increasing adoption of digital assets in a more supportive regulatory landscape. The company continues to strengthen its international footprint through expanded banking relationships, new regulatory licenses and personalized product offerings that cater to varied customer preferences—steps that could fuel sustained long-term growth. Its strategic pivot from primarily transaction-based revenues to more predictable subscription and service-based income is enhancing revenue stability. Investments in foundational infrastructure, including Base—a platform designed to improve Ethereum's scalability and lower transaction costs—reflect Coinbase's focus on long-term innovation. The growing use of stablecoins is contributing to increased stablecoin-related revenues, while the ongoing rise in Coinbase One subscriptions is expected to further bolster the company's top line. Coinbase remains focused on operational efficiency through a disciplined cost structure. Although its return on equity lags the industry average, the company's debt position is relatively stronger. In addition, a favorable improvement in the times interest earned ratio offers some financial flexibility. The steady growth in cash and cash equivalents also signals a strengthening liquidity position. What Should Investors Do Now With COIN Stock? The Trump administration is swiftly advancing its agenda to make the United States a global hub for cryptocurrency innovation. In this supportive environment, Coinbase—an industry leader—is well-positioned to benefit from efforts to drive growth, increase its share in the spot trading market across both retail and institutional segments, enhance user experience, and pursue ongoing innovation while keeping costs in check. That said, given the stock's elevated valuation and below-average return on equity, potential investors might consider holding off before entering a position. Higher. Faster. Sooner. Buy These Stocks Now A small number of stocks are primed for a breakout, and you have a chance to get in before they take off. At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We've combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month. 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CNBC
29-07-2025
- Business
- CNBC
Citigroup hikes price target on Coinbase, sees room for shares to rise more than 30%
Coinbase stands to gain from legislative momentum as well as stronger bitcoin prices and improved custodial fee revenue, according to Citigroup Global Markets. Analyst Peter Christiansen reiterated his buy rating on the crypto services provider and lifted his price target by 87%, to $505 from $270. The new target suggests the stock still has roughly 33% potential upside. Shares of Coinbase have rallied about 52% this year, helped by the Trump administration's favorable attitude toward cryptocurrencies and the entire financial ecosystem surrounding them. "Coinbase has enjoyed several catalysts in recent weeks, including: (i) signing of the GENIUS Act (stablecoins), (ii) House passage of the CLARITY Act (market structure), and (iii) inclusion in the S & P 500," Christiansen said in a 27=age report to clients published Monday. "We also believe investors are beginning to place a premium on blockchain innovations applicable for real-world activities." COIN 1Y mountain Coinbase stock performance over the past year. Christiansen said his new price target is driven by the quarterly rise in crypto prices of between 40% and 45%, and a better yield on Coinbase's Subs-n-Services revenue. The analyst expects Coinbase's integration of stablecoin USDC and new product announcements, such as its card partnership with American Express and new payments features, will lift Coinbase One subscriber growth. Coinbase in June announced that the American Express card will be available exclusively to U.S. members of the company's monthly subscription product Coinbase One, which offers zero trading fees and other perks. "We continue to see upside for COIN from adding futures and options as well as benefiting from its category leadership in the forthcoming regulated era of crypto," Christiansen said.
