Coinbase · Wall Street · JPMorgan · CoinDesk
The analysts agree that Coinbase remains heavily exposed to swings in crypto trading
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Coinbase's stablecoin business could provide some relief.
Key facts
- The uncertainty comes after Robinhood Markets HOOD $91.41
- Market Closed reported a 55% drop in crypto transaction revenue as crypto trading volume fell 38% in the period
- That puts their transaction revenue estimates between $578 million and $694 million, while total revenue forecasts range from roughly $1.2 billion to $1.4 billion
- For adjusted earnings before interest, taxes, depreciation and amortization (ebitda), JPMorgan forecasts $323 million, Barclays, with an underweight rating, $360 million and Oppenheimer, which rates
- The exchange earns a share of the income generated from reserves backing USDC, the dollar-backed token issued by Circle Internet CRCL $81.69
- Market Closed
Summary
Wall Street analysts expect Coinbase's trading activity to have improved from the second quarter, but disagree on how much revenue the rebound will generate. Robinhood's crypto transaction revenue fell 55% from a year earlier, raising concerns about weaker trading demand and pressure on exchange fees. Coinbase's stablecoin income and growing derivatives business could help offset sluggish trading, though analysts remain divided on its longer-term outlook. Coinbase Global COIN $162.32 · Market Closed reports third-quarter earnings after the market close on Thursday, with analysts looking for signs that crypto trading is recovering after a difficult stretch for the industry. Trading activity picked up in September after hitting multiyear lows in June, fueled by a rebound in crypto prices.