Coinbase Global earnings preview: poised for growth amid crypto resurgence

Coinbase Global, a premier cryptocurrency exchange in the U.S., is on the brink of revealing its Q4 earnings after the market closes on Thursday, February 9th. Expectations are set for an EPS of $0.02, marking a notable turnaround from the previous year's $2.46 loss. Revenue is anticipated to see a 31.3% increase, reaching $826 million.

The trajectory of COIN shares has historically mirrored bitcoin's value, with the stock still trailing its December 2021 peak. Nonetheless, the early January SEC nod for several bitcoin ETFs has sparked new interest, offering investors alternative bitcoin engagement methods. The upcoming earnings call is eagerly awaited for insights on how these ETFs might influence Coinbase's operations.

Recent analyst sentiment has turned more favorable, with JP Morgan elevating the stock to Neutral from Underweight and Oppenheimer shifting to Outperform. Needham has not only added COIN to its Conviction List but also highlighted it as a prime pick for 2024.

Established in 2012, Coinbase Global, Inc. underpins the cryptoeconomy globally, offering a robust financial account for consumers, a high-liquidity marketplace for institutions, and essential technology for developers. The platform is distinguished by its direct-to-consumer approach and trusted custodian services, appealing to a wide range of users.

The firm's revenue is mainly derived from transaction fees from retail customers, alongside ventures into prime brokerage and data analytics. This diversification strategy enhances its market position.

With analysis from 22 Wall Street experts, COIN holds an average Hold rating. The company's market cap stands at $38.37 billion, with an enterprise value of $35.96 billion. Its forward P/E ratio, at 312.5, significantly exceeds the S&P 500's average, reflecting investor anticipation of future growth.

Coinbase Global represents a significant force in the U.S. cryptocurrency exchange landscape, with its comprehensive, secure, and compliant offerings for both retail and institutional participants. Given its stable financial base and optimistic analyst outlook, Coinbase is a noteworthy contender in the evolving crypto sector as it gears up for its latest earnings disclosure.