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The company has seen activity on its trading platform surge in recent months.
Cryptocurrency exchange Coinbase Global (COIN) has reported fourth-quarter 2024 financial results that crushed Wall Street’s targets as trading in Bitcoin (BTC) and other digital assets hits new heights.
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The company posted earnings per share of $4.68, which was more than double the $2.11 consensus expectation of analysts who track the company’s progress. Revenue in the final quarter of last year totaled $2.27 billion, which was far ahead of the $1.88 billion estimate on Wall Street. Sales were up 130% from a year earlier and it was the company’s biggest quarterly revenue in three years.
Transaction revenue at Coinbase more than doubled from last year to $1.56 billion, and topped estimates that called for $1.29 billion. Total trading volume on the company’s platform during Q4 2024 was $439 billion, up 185% year-over-year. Consumer (retail investor) trading volume rose 224% from the same period a year ago, while trading volume among institutional investors increased 176%.
Crypto Rally
The management team at Coinbase said the exceptionally strong quarter was due to a raging postelection rally that pushed cryptocurrency prices to record levels at the end of last year. Bitcoin and other crypto have surged since U.S. President Donald Trump won re-election last November, promising to usher in a new era for digital coins and tokens.
Coinbase, which runs the largest U.S. marketplace for buying and selling crypto, also credited the continued popularity of spot BTC exchange-traded funds (ETFs), which first launched nearly a year ago, for its stellar results. Despite the exceptional print, COIN stock was trading flat in after hours trading. Over the last 12 months, the company’s share price has risen 86%.
Is COIN Stock a Buy?
The stock of Coinbase Global has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on six Buy and 10 Hold recommendations issued in the last three months. The average COIN price target of $317.64 implies 6.55% upside from current levels. These ratings are likely to change after today’s financial results.
Read more analyst ratings on COIN stock