Coinbase, the popular cryptocurrency exchange, is preparing to unveil its financial performance for the first quarter of 2024. This has sparked anticipation and speculation among both the crypto community and traditional investors, who have differing expectations regarding the anticipated figures.
Kunal Goel, a researcher for crypto research company Messari, has consistently outperformed consensus analyst estimates over the last three quarters with his revenue predictions for Coinbase. In a recent post, he estimated that Coinbase would generate an impressive $1.5 billion in net revenue for Q1 2024, representing a 65% growth for the quarter. This estimate surpasses the consensus estimate of $1.2 billion for gross revenue.
According to a report from Zack’s Equity Research, Coinbase has surpassed consensus earnings-per-share (EPS) estimates and revenue expectations for the past four quarters. This trend has caught the attention of investors.
Tipranks reveals that out of 24 consensus analysts covering Coinbase (COIN), nine recommend buying the stock, eleven suggest holding, and three advise selling.
Young Ko, the former CFO of Polygon Labs, believes that Coinbase’s earnings will exceed expectations. He highlights several catalysts that could contribute to this, including a potential win in Coinbase’s lawsuit against the United States Securities and Exchange Commission (SEC) and positive reports on its layer-2 Ethereum protocol Base revenue.
Coinbase’s share price currently stands at $236.43, with a 4.67% increase for the day but a 15.47% decline over the past 30 days, according to Google Finance data.
Crypto commentator Snow confidently states that Coinbase will surpass Street estimates, emphasizing the combination of a significant Q1 beat and Q2 trading revenues surpassing Q1 expectations.
Another crypto commentator, 0xCristian, predicts that Coinbase’s layer-2 network Base will have a positive impact on its Q1 2024 earnings, surpassing the previous quarter’s earnings by a significant margin.
The crypto community believes that revenue from Base could be the X factor for Coinbase this quarter, a factor that has been overlooked by Wall Street.
Will Clemente, a crypto analyst, suggests that the market is not fully pricing in the potential revenue from crypto-native sources, which is well understood by those familiar with the crypto industry. Clemente compares Coinbase to Tesla as a major venture-style bet in the public markets.
While Goel predicts that Coinbase will not internalize the revenue from Base for the past quarter, he expects the company to hold this revenue in an on-chain entity to fund future growth on Base.
According to data from investment research firm Fintel, Coinbase’s momentum score is 93.98, significantly higher than Nvidia (NVDA) and Tesla (TSLA).
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.