With cryptocurrency taking on a whole new life ahead of the 2024 elections, it’s little surprise that crypto exchange Coinbase (COIN) is drawing plenty of attention. In fact, new reports suggest it could be a banner quarter ahead, but investors aren’t so sure. Shares are down over 3% in Tuesday afternoon’s trading.
The early word about the latest quarter’s figures, based on TipRanks data, is that Coinbase will turn in an earnings per share figure of $0.94. That’s not only impressive on its own, but it’s phenomenal when compared to the 2023 second quarter. Then, Coinbase turned in a loss of $0.42 per share, meaning that Coinbase is doing about three times as well as it was then.
Also, Coinbase is looking to report a hefty surge in revenue, with 2024’s second quarter expected to bring in $1.396 billion. That’s a 97.2% increase over 2023’s second quarter when Coinbase brought in $708 million. Should the numbers come out like that, this will mark the fourth consecutive quarter of revenue growth.
A Long-Term Winner?
This is certainly good news for Coinbase in the short term, but what about the long? Word from five-star Oppenheimer analyst Owen Lau suggests that this could be the start of something big for Coinbase. Lau noted that we were “…getting closer to a monumental turning point for blockchain development in the U.S.,” and that getting in on Coinbase now would likely be among the best measures to get exposure to that sector.
Throw in the potential for a Trump return and a more accepting stance from Harris, and the potential only grows from there. Only time will tell how that turns out, but the potential for gain here is very real. Four consecutive quarters of growth certainly don’t hurt, though it may make some wonder how long the trend can continue.
Is Coinbase a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on eight Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 129.74% rally in its share price over the past year, the average COIN price target of $258.06 per share implies 13.94% upside potential.
