Coinbase is expected to reach a significant increase in the revenues of the fourth quarter on Thursday, driven by an increase in the prices of cryptocurrencies after Donald Trump returned to the White House.
Investors closely monitor to see if the stock exchange has benefited from renewed enthusiasm in the encryption sector, which sent its price to the high shares.
According to analysts assembled by FactSet, Coinbase is expected to publish profits per share of $ 2.11 and $ 1.84 billion in revenues, and nearly $ 954 million doubled in the previous year.
If these numbers are steadfast, this will determine one of the most powerful quarters of the company in modern history.
Coinbase sees a strong trading volume but faces competition
Coinbase trading in the fourth quarter is expected to increase to $ 216 billion, up from $ 185 billion in the third quarter and $ 154 billion in the previous year.
Although this is impressive, this remains much lower than $ 312 billion in early 2024 when the investment funds circulated in Bitcoin Spot for the first time.
One of the main concerns of investors is whether Coinbase can maintain its dominance in the face of increased competition.
With light regulations, traditional brokerage companies can enter the encryption space, and possibly eat in the market share in Coinbase.
Meanwhile, subscription revenues and services, which include profits from Stablecoin USDC, are expected to grow to $ 611 million, up from $ 375 million in the previous year.
This sector provides more stable revenue flow compared to volatile trade.
Wall Street’s expectations of currency stocks
Since the re -election of Donald Trump, Coinbase shares have increased by 40 % to $ 272, reflecting Bitcoin’s rise by 42 % to 96,882 dollars.
While the total expectations of Coinbase are positive, analysts remain divided on whether the company will fulfill the expectations.
Citi analysts raised their target price on Coinbase to $ 350 from $ 275, pointing to strong market conditions and organizational storms.
“We maintain our bullish theses on the coin, and we see the company in a good position to benefit with the start of the encryption a potential transfer to a new era,” the bank’s analysts wrote in a note.
It maintains a purchase classification on stocks.
However, JPMorgan’s Ken Worthington is more careful.
While admitting that the November elections were a “huge incentive for the ecosystems for encryption”, it is still neutral to stocks.
He sees the fourth -quarter revenues of $ 1.77 billion, and is also a Miss of the $ 1.8 billion unanimity estimate.
RobinHood profits can indicate good news for Coinbase
Another factor that can preach good for Coinbase is the strong performance of Robinhood, which recorded the fourth -quarter revenues of $ 1.01 billion, an increase of 115 % over the previous year.
Robinhood encryption revenues increased by 700 %, reflecting the renewed interest of digital assets.
Since both companies share a similar commercial base for retail, analysts believe that Coinbase can witness a similar boost in the user’s activity.
If Coinbase trading sizes match, the stock market may be on the right track for one of the best quarters since the last Crypto Bull.
The outlook is still linked to Trump’s encryption policies
Trump’s electoral victory in November was a change in the encrypted currency industry.
The President pledged to make the United States a “world of encryption capital” by alleviating organizational pressures.
The administration has quickly moved to implement the pro -Carbuto policies.
Trump has appointed encryption personalities in major organizational positions, including Mark Oida as Chairman of the Board of Directors of SEC and investment capitalism David Sachs to lead the White House initiative to organize encryption.
SEC has already created a working group to develop a clearer legal framework for this industry.
These organizational changes can have a direct impact on the currency base.
SEC filed a lawsuit against the stock exchange in 2023, claiming that it works as unregistered securities.
However, analysts now believe that the agency may either drop the lawsuit or stabilize conditions that allow Coinbase to continue working without major disturbances.
While Coinbase is preparing to report profits, the broader encryption industry monitors more regulatory developments under the Trump administration.
If the Securities, Stock Exchange and other agencies continue to reduce restrictions, Coinbase can expand its offers, adding more trading symbols and financial products.
Although competition can be increased, analysts remain bullish on Coinbase’s ability to take advantage of the new environment in support of the Krbuto.
The fourth company results in the fourth quarter will provide the first real overview of the extent of Trump’s policies that already constitute the future of the industry.
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