Robinhood’s Crypto Surge Hints at Coinbase’s Record Earnings Boom

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COIN’S BIG DAY: Will Coinbase Follow Robinhood’s Lead?

What to know:

  • Robinhood beat estimates for the fourth quarter of 2024 as revenue rose 115% year-over-year.
  • The main driver for this growth came from transaction-based revenue from cryptocurrency trading, which rose 700% over the same period.
  • Competitor Coinbase is reporting earnings on Thursday after the close and is expected to post its strongest volume since Q4 2021.

And so, it begins… the thrilling tale of Robinhood’s earnings beat, which has left Wall Street analysts rubbing their hands together in glee, thinking: “Ooh, this could be good for Coinbase!” 🤔

Robinhood, the popular trading platform, has announced that its fourth-quarter revenue rose a whoppin’ 115% from the previous year, beating Wall Street analysts’ estimate of $945.8 million. This is like a space slug on a sugar high, folks! 🐜

But, of course, the real magic happened in the world of cryptocurrency. Transaction-based revenue rose a staggering 200% from the previous year, thanks to a 700% rise in cryptocurrency revenue. It’s like a cosmic game of Monopoly, where the cryptocurrency tokens are the real estate and the players are the space-faring billionaires! 🚀

Now, you might be thinking, “What’s the connection between Robinhood and Coinbase?” Well, my friend, it’s like this: both platforms share a similar client base and get most of their revenue from trading fees. It’s like a big, happy family of space traders, all trading their way to riches! 🚀

So, what does this mean for Coinbase? Well, Wall Street analysts expect COIN to post one of its best quarters in terms of trading volume since Q4 of 2021, when the election of crypto-friendly President Donald Trump sent crypto prices to new all-time highs in November. It’s like a rocket ship to the moon, folks! 🚀

Estimates on FactSet predict Coinbase will report revenue of $1.8 billion, up from $1.26 billion in the third quarter and exchange volume of $195.9 billion, up from $185.3 billion. It’s like a cosmic game of Risk, where the stakes are high and the rewards are higher! 🎲

Robinhood also reported earnings per share of $1.01, topping the average estimate of $0.42. Shares of the trading app were up more than 5% in post-market trading on Wednesday, while COIN’s stock was up about 0.3%. It’s like a space battle, where the traders are the space marines and the crypto market is the enemy to be conquered! 🚀

UPDATE (Feb. 12, 2025, 21:30 UTC): Adds additional information about COIN earnings.

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2025-02-13 17:10