Coinbase Sees Surge in Revenue and Users, Analysts Raise Price Target

Coinbase, a leading cryptocurrency exchange, has reported a strong fourth-quarter earnings report, exceeding Wall Street estimates. The company’s revenue for Q4 2024 reached $2.27 billion, marking an 88% increase quarter-over-quarter and a 138% rise year-over-year.

Coinbase’s Market Share Gains and Bullish Outlook

Following the earnings report, H.C. Wainwright analysts have raised their price target for Coinbase to $350, citing the company’s market share gains and bullish management outlook. CEO Brian Armstrong described the current market environment as “a golden age for crypto,” emphasizing that increased regulatory clarity post-election has been a key driver of industry growth.

Trading Volumes and Revenue Growth

Trading volumes surged 132% quarter-over-quarter to $439 billion, with retail trading volume jumping 176% to $94 billion and institutional trading volume rising 128% to $345 billion. The company’s monthly transacting users grew 24% to 9.7 million, with half of its trading customers either new or reactivated after more than a year of dormancy.

Subscription and Services Revenue

Subscription and services revenue also exceeded expectations, coming in at $641.1 million, fueled by blockchain rewards and increased Coinbase One subscriptions. For Q1 2025, Coinbase is projecting subscription and services revenue between $685 million and $765 million, surpassing consensus estimates of $648 million.

Analysts’ Outlook and Price Target

H.C. Wainwright analyst Mike Colonnese argued that the company is well-positioned to take advantage of favorable trends, and despite a nearly 75% gain over the past year, the stock is still undervalued relative to its fair valuation. The analyst’s price target is based on 11.5 times EV/revenue multiple applied to his 2025 revenue estimate, which was lifted from $7.34 billion to $8.4 billion.

“All said, we remain buyers here and are raising our price target to $350 from $330.”

Tips for investors:

  • Keep an eye on Coinbase’s revenue growth and market share gains.
  • Monitor the evolving regulatory landscape and its impact on the cryptocurrency industry.
  • Consider the potential benefits of increased adoption and use of cryptocurrencies.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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