Coinbase is expected to report strong Q2 earnings with revenue and earnings growth expected, but stock is trading at a premium

From Nasdaq
July 29, 2024 9:56 am:

Coinbase Global Inc. (COIN) is set to release its second-quarter 2024 results on August 1, with expectations of revenue to hit $1.5 billion, up 104.9% from last year. Earnings are estimated at $1.07 per share, signaling a 354.8% growth year-over-year.

The company boasts a solid history of beating earnings estimates, with an average surprise of 364.63% over the last four quarters. However, the Zacks Model does not predict a beat this time, with an Earnings ESP of -20.43% and a Zacks Rank #3.

Factors like increased trading volume from higher volatility and international expansion are expected to drive Coinbase’s Q2 results. Revenue streams from trading fees, Stablecoins, and transaction revenues are anticipated to grow, with expenses estimated to increase across various categories.

Despite a strong performance outlook, Coinbase’s stock is currently trading at a premium to the industry average, with a price-to-earnings multiple of 60.27. New investors may want to wait for a more favorable entry point considering the valuation.

Investors should keep an eye on Coinbase’s growth prospects in the crypto market, international expansions, and innovation efforts. Despite some valuation concerns, the company’s strategic initiatives and cost-control measures could lead to long-term success.

For more information on Coinbase and other related news, visit Zacks Investment Research.

Read more at Nasdaq: Is Coinbase (COIN) a Buy or a Wait-&-See Before Q2 Earnings?