Crypto exchange Coinbase (COIN) reports Q4 results late Thursday as bitcoin notches two-year highs. Coinbase stock continues to rocket and received an upgrade from JPMorgan ahead of results.
X
FactSet expects Coinbase adjusted earnings will improve to 33 cents per share from a loss of 80 cents per share last year. Wall Street predicts GAAP earnings of 2 cents per share after seven consecutive quarterly losses.
Analysts forecast a 31% jump in revenue, to $826 million. That would mark the exchange’s second consecutive increase after six straight quarters of double-digit declines.
JPMorgan early Thursday upgraded COIN stock to neutral from underweight due to surging bitcoin, ethereum and broader cryptocurrency prices. The launch of spot bitcoin ETFs has translated into meaningful bitcoin price appreciation after initially being a “sell-the-news” event, the firm wrote in a research note. And that price appreciation is contributing to better spot bitcoin ETF flows, which is driving digital asset prices higher. JPMorgan expect cryptocurrency prices to not only sustain but improve Coinbase’s activity levels and earnings power. The firm maintained its $80 price target on COIN stock — 50% below where shares closed on Wednesday.
Bitcoin Price Action
Bitcoin traded above $52,300 early Thursday after hitting $52,519 in the morning — running further up against December 2021 levels. Wednesday’s action put the total market capitalization of all bitcoins back above the $1 trillion mark for the first time in more than two years. BTC is now up nearly 24% so far this year.
Meanwhile, Coinbase is serving as a custodian for eight of the newly-issued spot bitcoin ETFs, which continue surging as bitcoin rallies. The spot bitcoin ETFs gained another 1% Thursday morning after jumping more than 4.5% Wednesday.
The group accumulated more than $10 billion in assets during its first month of trading, which ended Feb. 11, according to Zacks.
BlackRock‘s (BLK) iShares Bitcoin Trust (IBIT) has been the clear leader in fund inflows since the spot bitcoin ETFs launched Jan. 11. The iShares Bitcoin Trust reported inflows of $4.84 billion as of Feb. 14, BitMEX Research reported.
The Fidelity Wise Origin Bitcoin Fund (FBTC) ranks second at $3.43 billion in inflows.
Grayscale Bitcoin Trust (GBTC) recorded about $6.68 billion in outflows through Feb. 14, which have steadily slowed. Still, Grayscale remains the leader in terms of assets, with $22.83 billion in assets under management.
Despite Grayscale’s outflows, the spot bitcoin ETFs saw a total of about $4.12 billion in inflows since launch, BitMEX Research reported.
Coinbase Stock
Coinbase stock jumped more than 6% early Thursday after bolting 14.2% higher Wednesday.
COIN stock is working up the right side of a third-stage cup base toward a 187.39 buy point.
Shares are up 25% so far this month but down 7.8% in 2024 through Wednesday’s close.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
YOU MAY ALSO LIKE:
Keep Up With Cryptocurrency Prices and News
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros
This news is republished from another source. You can check the original article here