Coinbase had an underwhelming quarter and received higher price targets.
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JPMorgan Chase raised its price target Coinbase (NASDAQ:COIN) stock after the cryptocurrency marketmaker experienced what it called a “blowout” in the first quarter.
Coinbase earned $1.175 billion$4.84 per share, fully diluted, on revenue of $1.637 billion for the three months ended March. JPMorgan raised its price target on the stock to $171 per share.
However, Coinbase opened this morning at $226 per share, giving it a market cap of just under $56 billion. Shares are now up 31% year-over-year but are holding steady 38% below its November 2021 peak.
Big ETF days
The gain was just Coinbase’s second since its boom times in late 2021. It was attributed to the rise of crypto exchange-traded funds (ETFs). These new products are said to have contributed to a 68% increase in trading volume for major coins compared to the previous year Coinmarketcapthat tracks the value of cryptocurrency.
Since the beginning of 2024 Bitcoin (BTC USD) is up 37% and ether (ETH-USD) has increased by 29%.
There is now Dozens of Bitcoin ETFs. The most famous are the Grayscale Bitcoin Trust (NYSEMKT:GBTC), with a fortune of over $21 billion, and the Blackrock (NYSE:BLACK) iShares Bitcoin ETF (NASDAQ:I BIT), with a fortune of over $2 billion.
Coinbase said transaction revenue for the quarter was $935 million, more than double a year ago. Total transaction revenue tripled to $1.08 billion.
So why did COIN stock fall after earnings?
Analysts blamed the 9% rise on May 2 falling Bitcoin prices. Bitcoin is down 6% week-on-week to around $60,500 per coin. According to Alesia Hobbs, Coinbase’s chief financial officer, COIN’s stock price reflects the overall sentiment of the cryptocurrency market more than Coinbase’s performance.
Crypto bulls now expect Coinbase to offer futures other altcoins How Arweave (AR-USD), Hedera (HBAR-USD) And Theta network (THETA-USD). While the rules of Bitcoin are fairly well known, the rules of altcoins deserve careful analysis before investing.
COIN Stock: What Happens Next?
Bitcoin can sometimes be seen as a measure of animal sentiment and market risk appetite. With markets expected to rise on May 3 on weak employment data, it should be a good day for Bitcoin traders.
At the time of publication, Dana Blankenhorn did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to those of InvestorPlace.com Publishing Guidelines.