Expectations Surge for Coinbase's Q1 2024 Report Amid Bullish Crypto Community Predictions
Summary:
Coinbase's upcoming Q1 2024 financial report has triggered various speculations among the crypto community and traditional investors. Messari researcher, Kunal Goel, expects a 65% quarterly growth, estimating $1.5 billion in net revenue, significantly more than the gross revenue consensus estimate of $1.2 billion. With previous steady earnings and several success factors, including the possible win against the SEC and positive results from the layer-2 Ethereum protocol Base, the crypto community believes the reveal could surpass Wall Street's expectations. However, Goel also posits that Coinbase might exclude revenue from Base in the earnings report, intending to use it for future growth.
Coinbase's impending first quarter results for 2024 have the crypto community and traditional investors at odds regarding potential outcomes. As Coinbase's financial report scheduled for May 2 approaches, speculations grow about whether crypto enthusiast's predictions will prove more accurate than those of usual investment analysts. According to Kunal Goel, a researcher at Messari, a crypto research firm, his previous three forecasts for Coinbase's revenue have consistently outperformed most analyst estimates. He projects that Coinbase will report an impressive first quarter net revenue of $1.5 billion in 2024, indicating a 65% quarterly growth. These figures far outstrip the common estimate of $1.2 billion for gross revenue.
Up to present, Coinbase has exceeded average estimates for both earnings per share and revenue during the last four quarters, as documented in a recent study by Zack's Equity Research. Based on Tipranks' data, among 24 analysts covering Coinbase, nine recommend buying, eleven propose 'hold,' and three suggest to 'sell.' Young Ko, former CFO of Polygon Labs, is bullish about Coinbase outperforming estimates for this period.
Ko, in an April 24 post on X, also highlighted several potential boosts to Coinbase's performance, including a potential legal win against the SEC and solid results from its Ethereum layer-2 protocol Base. As of now, Coinbase's stock, COIN, is valued at $236.43 according to Google Finance, reflecting a slight daily growth of 4.67% but a month-long decrease of 15.47%.
Crypto commentator 'Snow' posted on April 22, stating that careful observers anticipate Coinbase to far exceed Wall Street's predictions. He conveyed optimism about trading revenue for Q2 surpassing Q1, further encouraging excitement for the potential results. Likewise, crypto commenter 0xCristian, on April 16, noted that Coinbase's Base layer-2 network's success is likely to favorably influence its Q1 2024 earnings report.
Industry consensus among crypto enthusiasts tends to judge that overlooked proceeds from Base could be an influential factor for Coinbase's recent quarterly performance. Notably, crypto analyst Will Clemente argued that Wall Street is not giving enough consideration to certain revenue sources which are well understood within the crypto community.
However, Goel anticipates that Coinbase may choose not to incorporate the revenue from Base in this quarter's report, instead positioning it to foster growth for Base in the future. As per data from Fintel, Coinbase’s momentum score stands at 93.98, considerably higher than both Nvidia and Tesla.
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Published At
4/24/2024 11:03:25 AM
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