Devin Ryan, a JMP Securities Analyst says that long-term investors may want to consider buying shares in Coinbase Global Inc. (NASDAQ:COIN) during the decline following earnings.
Crypto company has lost 13% after missing earnings expectations and offering a muted guidance on revenue for the current quarter.
Ryan said in a Thursday research note that “nothing fundamental happened here”. Coinbase’s stock has fallen by more than 35 percent since its high for the year in late March.
What is the highest price that Coinbase could reach?
Bitcoin’s recent rally has seen it rise close to 20 percent, which could translate into “upward pressure” on the fourth quarter revenue. This is according to Devin Ryan.
He expects that the US election 2024 will be an advantage for COIN, especially since polls are starting to indicate a Trump Presidency. Donald Trump will likely favor crypto over Kamala.
JMP Securities has maintained its “buy rating” on Coinbase today. Price target $320 by the investment firm indicates a potential 75% increase from this point. Even though Crypto.com has recently overtaken COIN to become the largest US crypto exchange, it’s still bullish.
Ryan also recommends buying Robinhood Markets Inc shares on the weakness that follows earnings. On Wednesday, the financial technology firm reported that its third-quarter fiscal results were below expectations and revenue was down sequentially.
Robinhood’s stock has fallen by more than 15 percent at the time of writing.
COIN can benefit from a crypto-friendly Congress
Coinbase’s subscriptions and service revenue declined by 7.0% in the third-quarter.
Brian Armstrong, the chief executive of the company, told CNBC that “things are moving well” in this department. Subscription and service revenue will surpass $2.0 billion by 2023 compared to $1.4 billion.
Armstrong believes that the year ahead will be strong for crypto, regardless of the outcome in November. He said the following on “Closing Bell Overtime”:
Both candidates for president are appealing to the crypto-voter. No matter the outcome of the election, this will be the biggest crypto congress ever.
Brian Armstrong believes that Coinbase’s stock will benefit from the expansion of the company in derivatives.
BTC, which is widely expected to continue its rally over the next few months, could help COIN maintain this momentum. Many even predict that it will reach $100,000 by 2024.
The following post is a recommendation to buy Coinbase after the stock’s post-earnings drop. This post may change as new information becomes available
