Coinbase Stock: The Crypto Rollercoaster You Didn’t Know You Needed! 🎢💰

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So, H.C. Wainwright analysts have decided that Coinbase is the new black, raising their price target to a whopping $350. Apparently, this is all thanks to a fourth-quarter earnings report that was so strong it could probably bench press a car. They’re citing market share gains and a management outlook that’s more optimistic than a kid on Christmas morning. 🎄

In the latest episode of “How Much Money Can We Make?” Coinbase reported a staggering $2.27 billion in revenue for Q4 2024. That’s an 88% increase quarter-over-quarter and a 138% rise year-over-year. I mean, if Wall Street had a prom, Coinbase would be the one wearing the tiara, having just outperformed the estimates of around $1.8 billion. Talk about a glow-up! 💅

CEO Brian Armstrong, who I can only assume is wearing sunglasses indoors, described the current market as “a golden age for crypto.” Apparently, the increased regulatory clarity post-election is the fairy godmother we didn’t know we needed. Who knew regulations could be so… magical? 🪄

Trading volumes have surged like a caffeinated squirrel, jumping 132% quarter-over-quarter to $439 billion. Retail trading volume is up 176% to $94 billion, while institutional trading volume is rising like my blood pressure during tax season, up 128% to $345 billion. 📈

Analyst Mike Colonnese, who I imagine is sitting in a leather chair with a cigar, argues that Coinbase is perfectly positioned to ride this wave of favorable trends. Despite a nearly 75% gain over the past year, he insists the stock is still undervalued. It’s like finding a $20 bill in your winter coat pocket—unexpected and delightful! 💵

“All said, we remain buyers here and are raising our price target to $350 from $330,” the note read. Because who doesn’t love a good price hike? It’s like a surprise party, but instead of cake, you get stock options. 🎉

The analyst’s price target is based on an 11.5 times EV/revenue multiple applied to his 2025 revenue estimate, which he has graciously lifted from $7.34 billion to $8.4 billion. Because why not? Let’s just throw some extra zeros in there and see what sticks! 🎈

New customers and profitable subscriptions

In a plot twist worthy of a soap opera, the company’s monthly transacting users grew by 24% to 9.7 million. Half of these trading customers are either new or have reactivated after a year-long nap. It’s like a reunion of long-lost friends, but with more money involved. 🥳

Subscription and services revenue also exceeded expectations, coming in at $641.1 million, thanks to blockchain rewards and a surge in Coinbase One subscriptions. It’s like they found the secret sauce for success, and it’s made of blockchain and a sprinkle of fairy dust. ✨

For Q1 2025, Coinbase is projecting subscription and services revenue between $685 million and $765 million, which is just a tad above the consensus estimates of $648 million. They’re also expecting continued strength in USDC and higher marketing expenditures. Because if you’re going to make money, you might as well spend some too, right? 💸

Analysts believe Coinbase is poised to benefit from the evolving regulatory landscape and rising crypto adoption, projecting a 28% revenue growth in 2025 to $8.4 billion. It’s like watching a plant grow, but instead of leaves, it’s just dollar bills. 🌱

Shares of Coinbase last traded at $276.50 on the Nasdaq. So, if you’re looking for a wild ride, grab your popcorn and buckle up! 🍿

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2025-02-15 00:35