Coinbase Soars on Bullish Outlook, Q4 Earnings Beat

Coinbase, the leading cryptocurrency exchange in the United States, has received a bullish outlook from H.C. Wainwright analysts, who raised their price target for the company's stock to $350. This positive assessment follows Coinbase's strong fourth-quarter earnings report, which demonstrated significant market share gains and a bullish management outlook.

Coinbase reported a robust $2.27 billion in revenue for Q4 2024, marking an 88% increase quarter-over-quarter and a 138% rise year-over-year. This performance surpassed Wall Street estimates of approximately $1.8 billion. CEO Brian Armstrong attributed the company's success to the current market environment, describing it as "a golden age for crypto," and highlighted increased regulatory clarity post-election as a key driver of industry growth.

Trading volumes surged 132% quarter-over-quarter to $439 billion, with retail trading volume jumping 176% to $94 billion and institutional trading volume rising 128% to $345 billion. H.C. Wainwright analyst Mike Colonnese argued that Coinbase is well-positioned to capitalize on favorable trends, despite a nearly 75% gain in the stock over the past year. The analyst's price target of $350 is based on an 11.5 times EV/revenue multiple applied to his 2025 revenue estimate, which was lifted from $7.34 billion to $8.4 billion.

The company's monthly transacting users grew 24% to 9.7 million, with half of its trading customers either new or reactivated after more than a year of dormancy. Subscription and services revenue also exceeded expectations, coming in at $641.1 million, driven by blockchain rewards and increased Coinbase One subscriptions. For Q1 2025, Coinbase is projecting subscription and services revenue between $685 million and $765 million, surpassing consensus estimates of $648 million. The company also expects continued strength in USDC and higher marketing expenditures.

Analysts believe Coinbase is well-positioned to benefit from the evolving regulatory landscape and rising crypto adoption, projecting 28% revenue growth in 2025 to $8.4 billion. Shares of Coinbase last traded at $276.