Coinbase Stock Rallies 7% Pre-Market, Will Earnings Beat Wall Street Estimates?

Coinbase Global Inc (NASDAQ:COIN) is gearing up to unveil its fourth-quarter financial results after the market closes on Thursday, February 15. Ahead of the earnings, the Coinbase stock witnessed a 7% jump in the pre-market session on Thursday. Moreover, speculations are swirling around whether Coinbase would beat the Wall Street estimates or fall short.

Will Coinbase Earnings Beat Wall Street Estimates?

Wall Street analysts are eyeing a fourth-quarter revenue projection of $822.36 million for Coinbase, marking a notable increase from last year’s figure of $629.11 million. Notably, the Coinbase earnings report has consistently outperformed revenue forecasts over the past four quarters.

Expectations are for Coinbase to report a marginal loss of 1% share in the fourth quarter of FY24, a significant improvement from the $2.46 loss reported in the same period last year. However, the company has a mixed track record when it comes to meeting analysts’ earnings per share estimates.

Although Coinbase did not provide specific revenue guidance for the fourth quarter, it anticipates flat subscription and services revenue compared to the previous quarter’s $334.4 million. Meanwhile, analysts at Oppenheimer recently upgraded Coinbase from Perform to Outperform. Moreover, they cited optimism surrounding the company’s ongoing legal battle with the SEC and the potential positive impact of Bitcoin ETF approvals.

Conversely, JPMorgan analyst Kenneth B. Worthington downgraded Coinbase from Neutral to Underweight, expressing disappointment with the initial performance of Bitcoin ETF trading. Despite differing opinions, analysts generally acknowledge Coinbase’s strong position within the crypto sector and its potential for growth.

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Analyst Ratings For COIN Stock

Propelled by the bullish rally of Bitcoin (BTC) and the entire crypto market, the COIN stock surged significantly today. In the pre-market session, the Coinbase stock surged 7.11% to $171.10 at press time. Earlier, the stock gained 14.24% and closed at $160.38 on Wednesday, registering a major uptick ahead of earnings.

Whilst, Needham analyst John Todaro, for instance, has a Buy rating on the stock and raised the price target to $180, highlighting factors such as product growth, international expansion, and the launch of the Base Ethereum Layer 2 chain.

Other notable analyst actions in January include Citigroup’s Neutral rating with a price target increase to $151, Mizuho’s Underperform rating with a raised price target to $60, and Wedbush’s Outperform rating with a price target increase to $180.

Investors will closely watch the impact of the Bitcoin ETF launch on Coinbase’s earnings report, as well as the company’s efforts in international expansion and diversification of cryptocurrencies. With Bitcoin and Ethereum being significant contributors to the crypto exchange’s trading volume and transaction revenue, any changes in their dynamics could have notable implications for the company’s financial performance moving forward.

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