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The Coinbase Global Cryptocurrency Exchange Platform published a profit report on Thursday night that exceeded analysts' expectations and showed a great increase in income year after year, but the price of the shares initially fell during the night in the market prior to the market and moved five percent lower shortly after opening Friday.
The company that mentioned the Nasdaq list has seen the price of its shares increase 50 percent in the last six months, at $ 298 (£ 236) at the end of the play before announcing its last financial update.
But it has been a typically wild trip in the last five years, as has been the case of many products or platforms associated with bitcoin and cryptocurrency: from a price of $ 328 in October 2021, Coinbase shares crashed well below $ 40 at the beginning of 2023. Since the last months of that year, although they have been, in general, with more than a few wild swings, increasing again and exceeded $ 330 in December 2024.
Much of that can be explained in part of the business model. Bitcoin and Cryptasets fall prices resulted in lower rates per transaction for coinbase, while less transactions in general also affected. In addition, for a long time there have been regulatory concerns, as well as cases of litigation to deal with.
With a greater adoption of cryptocurrencies in the conventional financial field, plus the growing public (and political) conscience, in addition to President Donald Trump stating that he wants the United States to be the “cryptographic capital” of the world, trade has increased once again .
The Coinbase Profan Report showed a gain per share (EPS) of $ 4.68 for three months to December 31, and analysts expected a gain of $ 1.81 per share, according to Reuters.
Transactions revenues increased 172 percent to $ 1.6 billion, with total revenues of up to $ 2.3 billion, since it had been $ 953.8Mera year before. Clearly, this is a great growth in a capacity year after year, but as always the question for the platform, and for companies that experience growth in general, it is sustainable and what comes next.
So what do analysts and experts say now? The price of shares fell more than four cents in trade prior to the market, but by noon GMT, even more than two hours ahead of the opening of US markets, it was only 1.7 percent lower than the Thursday closure. That day he saw that the shares increase more than eight percent higher, in anticipation of the update of results, but on Friday within five minutes after the opening of the markets, the price dropped and moved between two and five percent lower again. Volatility, in fact.
View of analysts
Analysts that cover the company are divided into the target price of the shares, generally an indicator of expectations of 12 months or end of the year, but often subject to changes, but in all areas at least 24 of 26 qualify the action as A strong purchase. , buy or maintain, according to the latest data from Yahoo Finance.
Citi maintains a global purchase rating, citing an objective price of $ 350, and Benzinga lists the price objectives of the shares ranging from £ 328 (Barclays) to $ 420 (Needham).
The lowest on his list was the analyst Kyle Voight in Keefe, Bruyette and Woods, who offers a “market performance” rating, in other words, an expectation that the shares will increase or align with the broadest market, and a price of $ 275.
Jefferies analyst, Trevor Williams, told Yahoo Finance that a higher marketing expense would reduce the profit margins and have a retention rating on the actions, while JP analyst Morgan Ken Worthington said that the increase in volumes Commercial “seen after the choice has remained intact to a large extent, which suggests that this level of level level, activity and income generation levels could be sustainable.”
Dan Coatsworth, investment analyst at AJ Bell, said Independent: “The buzz around how Donald Trump would become the first president of the United States to embrace cryptocurrencies with open arms caused a frenzy among the public that was anxious to take a portion of Bitcoin. He created the perfect environment for Coinbase, since an avalanche of people used the platform to buy and sell crypts. This queue wind helped the business overcome profit expectations for the first time in three quarters.
“What is really impressive is the scale of 'rhythm'. The market had predicted $ 1.36 profits per share and Coinbase achieved that amount at $ 4.68 more than three times. It is incredibly rare to see a company crushed forecasts on that large scale.
“The big question for investors is whether that winning streak is over. The stock market is advanced and investors care about what will come later, not what has just been informed. The fact that Coinbase's actions fell into the market prior to the market is revealing: it implies that the market sees the last quarterly success as an artificial fireworks that light the skies but that it quickly disappeared.
“It is forecast that the next quarter will generate profits of $ 1.28 per share, less than what was forecast for the quarter that has just disappeared. The cryptographic market is driven by pure speculation and when things are silent in the front of the news with respect to the main buyers or vendors, or what could happen from a political or regulatory perspective, the volume of trade inevitably dies. ”
Coinbase intention
Naturally, the same coinbase are optimistic in future perspectives.
“We are really entering a golden age for cryptograph Annotation after the profits. call.
“President Trump is moving rapidly to fulfill his promise to become the cryptographic capital of the planet. And the most pro-Christ Congress the rest of the world is realizing and will be under pressure to embrace the adoption of cryptography,” he added.
Coinbase wants the additions to the presidential administration market to revolve around the classification of tokens and the stablecoins, while there is an expectation that they also seek to obtain a majority of the business of institutional investors in cryptography as time passed .
Potential winds against and winds
TrainingView takes into account that retail investors have not bought and sell cryptocurrencies at the same levels that are seen in 2021. That means there is reach for more, but it probably also shows that more people are aware of the fiscal implications of Bitcoin and beyond, which was not. Maybe the case before.
International expansion is another potential case, but like regulatory pressures they can now decrease the place in the United States, they can still face big problems in other countries where governance is not so pro-Christo or where retail investors are more restricted in the way they can trade.
In addition, Coinbase has a low rate of performance on heritage (0.88 percent), Benzinga shows, with its net margin (6.26 percent) also below the averages of the industry and the cut of costs of meaning can be in the Agenda All this, before considering possible competitors on the platform as Robinhood, which reported record income this week.
Whatever the way in which the price of coinbase shares, it is possible that the cryptocurrency itself remains volatile, unpredictable and a source of argument among those who believe that it is a large part of the future, and those who see that it has little or no intrinsic value.
