Crypto Traders vs. Wall Street: Predicting Coinbase Q1 Earnings

Coinbase, a prominent cryptocurrency exchange, is gearing up to release its financial results for the first quarter of 2024. This has sparked various expectations from both the crypto community and traditional investors regarding the anticipated figures. Some members of the crypto community believe that their predictions will be more accurate than those of traditional investment analysts. Kunal Goel, a researcher for crypto research company Messari, has consistently provided revenue estimates for Coinbase that have exceeded consensus analyst estimates over the past three quarters. Goel predicts that Coinbase will generate a significant $1.5 billion in net revenue for Q1 2024, showing a 65% growth for the quarter. This estimate is higher than the consensus estimate of $1.2 billion for gross revenue.

Coinbase has shown impressive financial performance in recent quarters, surpassing consensus earnings-per-share (EPS) estimates and consensus revenue. According to a report from Zack’s Equity Research, Coinbase has outperformed these estimates for the past four quarters. Out of 24 consensus analysts covering Coinbase, nine recommend buying the stock, 11 suggest holding, and three advise selling. Young Ko, the former CFO of Polygon Labs, believes that Coinbase’s earnings will exceed expectations. Ko anticipates positive catalysts, such as a favorable outcome in Coinbase’s lawsuit against the United States Securities and Exchange Commission (SEC) and positive reports on its layer-2 Ethereum protocol Base revenue, leading up to the release of their earnings report on May 2.

The share price of Coinbase currently stands at $236.43, with a 4.67% increase for the day but a decline of 15.47% over the past 30 days. Crypto commentator Snow confidently states that Coinbase will surpass street estimates, highlighting a massive Q1 beat and promising Q2 trading revenues. Similarly, commentator 0xCristian believes that the success of Coinbase’s layer-2 network Base will positively impact its Q1 2024 earnings report.

Many in the crypto community believe that revenue from Base could be the crucial factor for Coinbase’s performance in the last quarter, a factor that has been overlooked by Wall Street. Crypto analyst Will Clemente suggests that traditional investors might not be fully considering the potential revenue from cryptocurrency-related activities understood by the crypto community. Clemente compares Coinbase to Tesla, stating that it is the biggest venture-style bet in public markets since Tesla five years ago.

Although Goel predicts that Coinbase will not immediately account for the revenue from Base in the last quarter, he expects the company to hold this revenue in an on-chain entity to fund future growth on Base. According to data from investment research firm Fintel, Coinbase’s momentum score is higher than that of Nvidia and Tesla.

4 thoughts on “Crypto Traders vs. Wall Street: Predicting Coinbase Q1 Earnings

  1. Positive catalysts like a favorable outcome in Coinbase’s lawsuit and Base revenue reports could really boost their earnings. Exciting times ahead! 🚀📰

  2. This article is just trying to hype up Coinbase. I’m not falling for it.

  3. The crypto community tends to overestimate these things. I’m not getting my hopes up.

  4. Despite the recent decline in share price, Coinbase’s Q1 performance is expected to be impressive. Holding my breath for the earnings report!

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