The stock price of Coinbase will be the focus next week when the crypto exchange releases its earnings for the fourth quarter, which will conclude its most successful year to date. COIN’s price has been in a narrow range all year, as Bitcoin and many altcoins have declined. The price ended last week at $275. This is down almost 22% compared to its peak in 2024. What’s next for COIN and Cony stocks?
Headwinds and tailwinds of Coinbase
Coinbase is the largest crypto exchange in America. It has experienced numerous tailwinds, which have helped its stock rise by 776 percent from the lowest point it reached in 2023.
The market capitalization of crypto currencies has risen to more than $3 trillion. Bitcoin is nearing its record high, and all other coins have also soared. When these currencies are flourishing, Coinbase and the other crypto exchanges thrive.
Coinbase, the largest crypto custodian company in the US has expanded its business to include cryptocurrency custody. Grayscale, Blackrock and other companies use it to house Bitcoin and Ethereum exchange-traded funds (ETFs). The Securities and Exchange Commission will approve more funds, and it is likely that the fund manager will house them.
Coinbase has also launched Base, which is a layer-2 chain that’s now the third largest in the cryptocurrency industry. The Base Blockchain protocol handled more than $10,7 billion of volume over the past seven days. It also processed $50 billion during the previous 30 days.
Base Blockchain’s valuation could reach over $10 billion if Coinbase launches its airdrop.
Coinbase has seen its revenue become more diverse, and subscriptions have played a major role.
The company faced many challenges. The biggest problem is competition, as it continues to lose share of the market to other firms, such as Crypto.com Bybit and OKX. Coinbase also has lost market share to DEX network like Raydium Orca and Jupiter.
Earnings preview for Coinbase
Coinbase’s financial results will be published on the Thursday of next week. Estimated revenue will average $1.75billion, an 83% increase from the previous year. This would bring the company’s annual revenue up to $6.01 Billion, an increase of 93% over 2023.
Coinbase will see its earnings per share move up from $0.01 to $1.9 in the last quarter of ’23, and will have a $6.6 annual EPS.
Analysts predict that Coinbase will earn and generate $6.3 billion by 2025. The volatility in the cryptocurrency market has made it difficult to accurately predict Coinbase’s earnings.
Coinbase reported a total revenue of $674 Million in its third-quarter earnings report. The majority of this revenue came from services and subscriptions, which amounted to $334 millions. The company’s transactions revenue was $284 millions.
This is an indication that the business has been restructured, so that even during bear crypto markets it will continue to do well.
Coinbase stock price forecast
TradingView COIN Stock Chart
Weekly chart showing the COIN price at its lowest point of 31 dollars in 2023, then rising to $350 by this year. The stock is hovering around a critical level which coincides with the biggest swing of March 25. Stock remains above 50-weeks and 25-weeks moving averages.
Bulls will therefore likely rebound in the next few weeks, as they aim for the current YTD peak of $350. If the stock breaks above this level, it could lead to further gains. It may even reach $430. This would be a 57% increase from its current price.
The CONY ETF will gain more if the price of Coinbase stocks rises. CONY, a covered-call ETF, invests in Coinbase and sells options on the stock.
The post Coinbase Stock Forecast: Are COIN and Cony Buys in Earnings may be updated as new information unfolds
