Coinbase Q1 Earnings: Crypto vs. Conventional Wisdom – Who Will Be Right?

Crypto News- As Coinbase prepares to unveil its financial performance for Q1 of 2024, there’s a palpable sense of anticipation swirling between the crypto aficionados and traditional investors, each harboring their unique set of expectations.

Coinbase Q1 Earnings: Crypto vs. Conventional Wisdom – Who Will Be Right?

Kunal Goel, a researcher at the crypto research firm Messari, has been particularly bullish, consistently surpassing the predictions of conventional analysts over the past three quarters. In his recent exposition on X, he projected a staggering $1.5 billion in net revenue for Q1 2024, showcasing a robust 65% quarter-on-quarter growth. Such optimism is in stark contrast to the consensus estimate of $1.2 billion for gross revenue.

Zack’s Equity Research Echoes Goel: Coinbase’s Consistent Outperformance

Backing Goel’s sentiment, Zack’s Equity Research noted Coinbase’s track record of outperforming both earnings-per-share (EPS) estimates and revenue consensus across the past four quarters.

Meanwhile, insights from 24 consensus analysts covering Coinbase (COIN) show a varied landscape of recommendations, with nine advocating “buy,” 11 suggesting “hold,” and three advising “sell.”

Young Ko’s Optimistic Projections: Catalysts for Coinbase’s Surpassing Earnings

Former CFO of Polygon Labs, Young Ko, shares Goel’s bullish outlook, expressing a strong belief that Coinbase’s earnings will surpass expectations. Ko, in an April 24 post on X, outlined several potential catalysts, including optimism surrounding Coinbase’s legal battle with the SEC and positive indicators regarding its layer-2 Ethereum protocol Base revenue.

As the current share price of COIN hovers at $236.43, witnessing a daily uptick of 4.67% but a month-long decline of 15.47%, there’s a prevailing sentiment within the crypto community, echoed by commentators like Snow and 0xCristian, that Coinbase is poised for a significant Q1 beat.

Base Layer-2 Network: A Hidden Gem Impacting Coinbase’s Q1 2024 Earnings

The success of Coinbase’s layer-2 network Base is seen as a pivotal factor in shaping Q1 2024 earnings, with many in the crypto sphere emphasizing its potential impact, which may be overlooked by Wall Street.

Will Clemente, a notable crypto analyst, emphasized that the mainstream market may not fully appreciate Coinbase’s crypto-native revenue potential, drawing parallels with Tesla’s emergence as a disruptive force in public markets.

However, Goel posits that Coinbase might not immediately incorporate Base revenue for the last quarter, suggesting it could be earmarked for future growth initiatives.

With a momentum score of 93.98 according to data from investment research firm Fintel, Coinbase appears to be riding high, outpacing giants like Nvidia and Tesla in market sentiment.

As May 2 approaches, all eyes are on Coinbase, with both crypto enthusiasts and traditional investors eager to see if the anticipated earnings will indeed surpass expectations, potentially reshaping perceptions of the crypto industry’s influence on financial markets.