Coinbase Stock: COIN A Buy Despite Q3 Revenue Miss, Analyst Says
Coinbase shares fell after the company’s weaker-than-expected third-quarter earnings, but H.C. Wainwright analyst Mike Colonese maintains a buy rating on the stock.
On Oct. 30, Coinbase, the largest publicly traded crypto exchange, released its third-quarter earnings report, which showed an “uncharacteristic top-line miss,” according to Colonese. He noted that this might impact the company’s shares in the short term.
However, despite the revenue miss, largely down to the lower crypto prices during the quarter, the overall take is that this was a solid Q3, 2024.
Notably, aspects such as expense controls and revenue diversification are on the positive side for Coinbase. The next 12 months also offer a bullish outlook for crypto prices, with regulatory clarity adding to potential upside catalysts.
“We were encouraged to hear management’s positive views on the upcoming election and the implications for the crypto sector. Specifically, CEO Brian Armstrong, believes the U.S. will have the “most pro-crypto Congress ever” regardless of who wins next week’s presidential election. Lastly, Coinbase recently initiated a $1B share repurchase program, as the company aims to return capital to shareholders in the future.”
Mike Colonese said.
Colonese reiterated a buy rating for Coinbase, with a price target of $255, down from $295, reflecting the revised revenue estimate for 2025.
H.C. Wainwright analysts have lowered their revenue estimates for Coinbase, projecting $5.45 billion for 2024 (down from $5.67 billion) and $5.37 billion for 2025 (down from $6.25 billion).
Coinbase reported total revenues of $1.21 billion in the third quarter, a decline of 17% quarter over quarter but an increase of 86% year over year, slightly below FactSet estimates of $1.26 billion.
Risks to H.C Wainwright’s Buy rating and target price of $255 will include concentration of retail trading revenue, crypto price dump and regulatory uncertainty.
Ether Surges 16% Amid Speculation Of US ETF Approval
New York, USA – Ether, the second-largest cryptocurrency by market capitalization, experienced a significant surge of ... Read more
BlackRock And The Institutional Embrace Of Bitcoin
BlackRock’s strategic shift towards becoming the world’s largest Bitcoin fund marks a pivotal moment in the financia... Read more
Robinhood Faces Regulatory Scrutiny: SEC Threatens Lawsuit Over Crypto Business
Robinhood, the prominent retail brokerage platform, finds itself in the regulatory spotlight as the Securities and Excha... Read more
Flockerz Presale Crosses $1.8 Million; Geared To Be The Best Meme Coin Investment
Bitcoin hits $90K and meme coins soar, while presale meme coin Flockerz raises $1.8 million amid the buzz. #partnerconte... Read more
Ripple CEOs Bold Statement As XRP Price Soars To 2-Year High
Ripple CEO Brad Garlinghouse made a bold statement highlighting the impressive performance of U.S.-linked cryptocurrenci... Read more
The Future Of Meme Coins: 5 Tokens Investors Need To Consider Buying Right Now
Meme coins are transforming the crypto market—discover 5 emerging tokens that could be the next big opportunity in dig... Read more