Coinbase is set to announce its financial results for the first quarter of 2024, and the expected numbers have generated differing expectations among the crypto community and traditional investors.
Ahead of Coinbase's earnings release on May 2nd, speculation is mounting as to whether the crypto community's predictions are more accurate than typical investment analysts.
Kunal Goel, a researcher at crypto research firm Messari, explained that over the past three quarters, Coinbase's revenue estimates have “handily exceeded analyst consensus estimates.”
“I expect Coinbase to grow 65% in Q1 2024 and generate a whopping $1.5 billion in net revenue. My estimate is higher than the consensus estimate for total revenue of $1.2 billion. Much higher,” he explained in a recent X post.
According to a recent report from Zacks Equity Research, Coinbase has exceeded consensus earnings per share (EPS) estimates over the past four quarters, and has also surpassed consensus earnings for each period.
According to Tipranks, of the 24 consensus analysts covering Coinbase (COIN), 9 have recommended a “buy,” 11 have recommended a “hold,” and 3 have recommended a “sell.”
Young Ko, former CFO of Polygon Labs, believes Coinbase's earnings are “very likely to exceed expectations.”
Koh further explained in an April 24 post on X that several catalysts will only gain momentum before the earnings report is released on May 2.
These include expectations for Coinbase to announce a victory in its lawsuit against the U.S. Securities and Exchange Commission (SEC), as well as positive reports on earnings for layer 2 Ethereum protocol Base.
At the time of publication, COIN stock price was $236.43, up 4.67% on the day but reflecting a decline of 15.47% over the past 30 days, according to data from Google Finance.
“Those of us who are following it closely already know it will blow away market expectations,” crypto commentator Snow said in an April 22 post.
“The combination of a significant beat in Q1 and trade turnover in Q2 tracking *ahead* of Q1 would be literally shocking,” Snow added.
Meanwhile, cryptocurrency commentator 0xCristian said in an April 16 post that the success of Coinbase's layer 2 network Base will have a positive impact on its first quarter 2024 earnings report.
“We are about to significantly exceed our 4th quarter profit and this will impact the stock price. In the 1st quarter, the trading volume of Base + Coinbase wallets was huge. Be careful.” he said.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
