Latest news with #CoinbaseGlobal
Globe and Mail
4 hours ago
- 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. You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days. Download the report free now >> Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
Business Insider
6 days ago
- Business
- Business Insider
COIN, CRCL, MSTR: Crypto Stocks Fall After Trump Signs Stablecoin Bill into Law
Stocks of cryptocurrency companies such as Coinbase Global (COIN) and Circle Internet Group (CRCL) are down after U.S. President Donald Trump signed into law a bill that regulates stablecoins. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Trump has signed the 'GENIUS Act' into law, marking a huge win for the crypto industry that had been lobbying for a regulatory framework to gain greater legitimacy among investors. The crypto legislation landed on Trump's desk after it was passed in the U.S. House of Representatives by a vote of 308 to 122, following earlier approval in the Senate. The GENIUS Act bans yields, or interest payments, on regulated stablecoins, a move that is helping to boost cryptocurrencies such as Ethereum (ETH) that provide yield generation. Ethereum is currently trading near $3,800, its highest level of the year. Stablecoins are cryptocurrencies whose value is pegged to an underlying asset, typically the U.S. dollar or price of gold. Use Case Stablecoin use has exploded in recent months, with some Wall Street banks such as Bank of America (BAC) announcing plans to launch their own stablecoins. However, news that Trump signed the GENIUS Act into law has crypto stocks such as Coinbase and stablecoin issuer Circle trading lower. Analysts say investors are taking profits after a bull run in the lead-up to the legislation's passage. Other well-known crypto stocks such as Strategy (MSTR) and miners such as Riot Platforms (RIOT) are also trending lower or trading flat on July 22. At the same time, cryptocurrencies are advancing, with prices for digital assets such as Solana (SOL) climbing 5% and Bitcoin (BTC), the largest cryptocurrency by market capitalization, up 2% in the past 24 hours. Is COIN Stock a Buy? The stock of Coinbase Global has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and one Sell recommendations issued in the last three months. The average COIN price target of $342.40 implies 18.43% downside risk from current levels.
Bloomberg
7 days ago
- Business
- Bloomberg
Coinbase Brings Leverage to the Masses With Perpetual Futures
David Pan takes a look at a new futures offering from Coinbase that will allow US retail traders to lever up their crypto bets. Emboldened by the pro-crypto regulatory environment fostered by the Trump administration, Coinbase Global Inc. just made one of the most-popular — and riskiest — crypto products in the world available to US retail investors.
Yahoo
22-07-2025
- Business
- Yahoo
Can COIN's Base App Power Web3 Growth and Revenue Diversification?
Coinbase Global Inc.'s COIN Base App, set to replace the existing Coinbase Wallet, represents a major milestone in the company's broader Web3 strategy. Natively built on Base—Coinbase's Ethereum Layer 2 network—the app provides users with a streamlined, user-friendly interface to access decentralized applications (dApps), conduct crypto transactions and engage in various on-chain activities. By simplifying the user experience and removing complex blockchain barriers, Base App aligns with Coinbase's mission to onboard the next billion users into the Web3 Coinbase becomes the first U.S.-based exchange to roll out a comprehensive super app that brings together key Web3 functionalities — wallet, DeFi, NFTs, and payments — within a single mobile platform. This move expands Coinbase's reach beyond its core trading business, allowing it to engage a wider consumer audience. The Base App serves as a key growth lever, deepening user participation in the on-chain ecosystem while opening up new monetization the app enhances and diversifies Coinbase's revenue streams. As users tap into Web3 services, Coinbase stands to earn from token swaps, stakingand other in-app offerings. Its integration with the Base network further allows the company to capture sequencer fees and benefit from rising on-chain activity. This strategic pivot reduces Coinbase's reliance on unpredictable trading volumes and fosters a more resilient, recurring revenue model centered on infrastructure usage and ecosystem expansion. What About COIN's Competitors? Robinhood Wallet drives Robinhood Markets' HOOD expansion beyond traditional brokerage into self-custodial crypto, offering access to tokens, NFTs and future DeFi tools. By engaging crypto-native users, Robinhood diversifies its revenue streams. This positions Robinhood to capitalize on Web3 growth while reducing dependence on its core trading Inc.'s XYZ Bitcoin Wallet drives Block's growth by enabling self-custodial crypto access and empowering users with financial control. By simplifying Bitcoin storage and peer-to-peer transfers, it aligns with Block's mission of economic empowerment and reinforces its strategic position within the Bitcoin ecosystem and emerging Web3 landscape. COIN's Price Performance Shares of COIN have gained 69.1% year to date, outperforming the industry. Image Source: Zacks Investment Research COIN's Expensive Valuation COIN trades at a price-to-earnings value ratio of 75.03, above the industry average of 22.44. But it carries a Value Score of F. Image Source: Zacks Investment Research Estimates for COIN Witness Southward Movement The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved down 2 cents and 1 cent, respectively, over the past seven days. The same for full-year 2025 and 2026 EPS has decreased by 2 cents and 3 cents, respectively. Image Source: Zacks Investment Research The consensus estimate for COIN's 2025 and 2026 revenues indicates year-over-year increases. While the consensus estimate for COIN's 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase. COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
21-07-2025
- Business
- Globe and Mail
Can COIN's Base App Power Web3 Growth and Revenue Diversification?
Coinbase Global Inc.'s COIN Base App, set to replace the existing Coinbase Wallet, represents a major milestone in the company's broader Web3 strategy. Natively built on Base—Coinbase's Ethereum Layer 2 network—the app provides users with a streamlined, user-friendly interface to access decentralized applications (dApps), conduct crypto transactions and engage in various on-chain activities. By simplifying the user experience and removing complex blockchain barriers, Base App aligns with Coinbase's mission to onboard the next billion users into the Web3 space. Notably, Coinbase becomes the first U.S.-based exchange to roll out a comprehensive super app that brings together key Web3 functionalities — wallet, DeFi, NFTs, and payments — within a single mobile platform. This move expands Coinbase's reach beyond its core trading business, allowing it to engage a wider consumer audience. The Base App serves as a key growth lever, deepening user participation in the on-chain ecosystem while opening up new monetization pathways. Importantly, the app enhances and diversifies Coinbase's revenue streams. As users tap into Web3 services, Coinbase stands to earn from token swaps, staking and other in-app offerings. Its integration with the Base network further allows the company to capture sequencer fees and benefit from rising on-chain activity. This strategic pivot reduces Coinbase's reliance on unpredictable trading volumes and fosters a more resilient, recurring revenue model centered on infrastructure usage and ecosystem expansion. What About COIN's Competitors? Robinhood Wallet drives Robinhood Markets ' HOOD expansion beyond traditional brokerage into self-custodial crypto, offering access to tokens, NFTs and future DeFi tools. By engaging crypto-native users, Robinhood diversifies its revenue streams. This positions Robinhood to capitalize on Web3 growth while reducing dependence on its core trading business. Block Inc.'s XYZ Bitcoin Wallet drives Block's growth by enabling self-custodial crypto access and empowering users with financial control. By simplifying Bitcoin storage and peer-to-peer transfers, it aligns with Block's mission of economic empowerment and reinforces its strategic position within the Bitcoin ecosystem and emerging Web3 landscape. COIN's Price Performance Shares of COIN have gained 69.1% year to date, outperforming the industry. Image Source: Zacks Investment Research COIN's Expensive Valuation COIN trades at a price-to-earnings value ratio of 75.03, above the industry average of 22.44. But it carries a Value Score of F. Estimates for COIN Witness Southward Movement The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved down 2 cents and 1 cent, respectively, over the past seven days. The same for full-year 2025 and 2026 EPS has decreased by 2 cents and 3 cents, respectively. The consensus estimate for COIN's 2025 and 2026 revenues indicates year-over-year increases. While the consensus estimate for COIN's 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase. COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> 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 Coinbase Global, Inc. (COIN): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
