Summary of Key Points Core Viewpoint - The stock price of Coinbase Inc has decreased by over 13% following the release of its earnings for Fiscal Year 2024 from February 13 to February 19 [1]. Company Performance - Coinbase Inc's stock performance is directly impacted by its earnings report, indicating potential investor concerns regarding its financial health and future outlook [1]. Market Trends - The decline in Coinbase's stock price reflects broader market trends and investor sentiment towards cryptocurrency exchanges, which may be influenced by macroeconomic factors and regulatory developments [1].

Core Viewpoint - The article discusses why certain well-known stocks, specifically Taiwan Semiconductor, Spotify, Shopify, and Coinbase, are not included in the S&P 500 index and suggests alternative ETFs for investors to gain exposure to these companies [1][3]. Group 1: Stocks Not in S&P 500 - Taiwan Semiconductor Manufacturing (TSM) is excluded from the S&P 500 due to its headquarters being in Taiwan, despite having a trillion-dollar market cap [4][5]. - Spotify (SPOT) is a foreign company based in Sweden and Luxembourg, which prevents its inclusion in the S&P 500, but it is included in over 120 ETFs [7][8]. - Shopify (SHOP) is based in Canada and thus not eligible for the S&P 500, yet it is held by approximately 75 ETFs, including ARK Fintech Innovation ETF [9]. - Coinbase International (COIN) is a U.S.-based company with a market cap of $66 billion, but it has been skipped for S&P 500 inclusion multiple times, although it is included in over 160 other ETFs [11][12][14]. Group 2: Alternative ETFs - Taiwan Semiconductor is a major holding in the S&P World Ex-US ETF and the VanEck Semiconductor ETF, providing alternative investment options [6]. - Spotify is the top holding in the First Trust International Equity Opportunities ETF and is included in various Vanguard ETFs [8]. - Shopify is a flagship holding in ARK Fintech Innovation ETF, representing 10% of the fund's total value [9]. - Coinbase is a significant holding in multiple ARK funds and is also included in various SPDR and Vanguard ETFs, indicating strong investor interest [14].

Core Insights - The episode evaluates Coinbase's stock potential, focusing on business strength, management, and financials to determine if it is a strong investment or a risky bet in the crypto landscape [1] Group 1: Business Strength - The analysis includes ratings on Coinbase's business strength, indicating the company's position in the evolving cryptocurrency market [1] Group 2: Management Evaluation - The discussion also covers the management aspect of Coinbase, assessing how leadership decisions impact the company's performance and investor confidence [1] Group 3: Financial Analysis - Financial metrics are examined to provide insights into Coinbase's profitability and growth potential, which are critical for investment decisions [1]

Core Viewpoint - Coinbase Global, Inc. has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for Coinbase Global indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10]. Earnings Estimate Revisions for Coinbase Global - Analysts have increased their earnings estimates for Coinbase Global, with the Zacks Consensus Estimate rising by 67.7% over the past three months [8]. - The expected earnings per share for the fiscal year ending December 2025 is $4.56, reflecting a year-over-year change of -40% [8].

Core Viewpoint - Coinbase Global Inc reported strong fourth-quarter revenues, exceeding analyst expectations, but its shares traded lower despite the positive results [1][9]. Financial Performance - Coinbase's fourth-quarter total revenue reached $2.272 billion, surpassing the consensus estimate of $1.862 billion by 22% [2]. - Transaction revenues exceeded consensus by 33%, while subscription and services revenue was 6% above expectations [2]. - Revenues grew 138% year-on-year to $2.3 billion, with adjusted EBITDA increasing nearly 300% to $1.3 billion [6]. Operational Insights - The strong results were attributed to volume growth and a sequentially flat take rate, with EBITDA margins approaching 57% [3]. - The company demonstrated prudent operational expense control, contributing to its profitability [3]. - Management's first-quarter guidance for subscription and service revenue is projected at $725 million, indicating 13% sequential growth [5]. Market Position - Coinbase continues to gain market share despite not being the lowest cost service provider [5][8]. - The company listed 13 new assets on its platform, leading to a 24% sequential increase in monthly transacting users (MTUs) to 9.7 million [8]. Analyst Ratings and Price Targets - Goldman Sachs maintained a Neutral rating, raising the price target from $340 to $350 [2]. - Canaccord Genuity maintained a Buy rating, increasing the price target from $280 to $400 [4]. - JMP Securities reaffirmed a Market Outperform rating, lifting the price target from $400 to $475 [6]. - HC Wainwright reiterated a Buy rating, raising the price target from $330 to $350 [8].

Core Insights - Coinbase Global (COIN) reported strong fourth-quarter 2024 results, exceeding earnings and revenue estimates, driven by increased trading volumes in Bitcoin and other digital tokens following the U.S. election [1][3] - The company achieved its highest quarterly revenues in three years, with earnings per share of $4.68, significantly above the Zacks Consensus Estimate of $1.94 [3] Financial Performance - Revenues surged 88% quarter-over-quarter and 138% year-over-year to $2.27 billion, surpassing the consensus estimate of $1.73 billion [3] - Trading volume increased 185% year-over-year to $439 billion, with retail trading volume up 224% and institutional trading rising 176% [4] - Total transaction revenues more than doubled from the previous year to $1.56 billion, while subscription and services revenues reached $641 million [4] Future Outlook - For the first quarter of 2025, Coinbase anticipates transaction revenues of approximately $750 million and subscription and services revenues between $685 million and $765 million [5] - The company is optimistic about future growth, viewing recent regulatory changes as a new era for cryptocurrency, and plans to enhance stablecoin adoption and expand its layer-2 network [6] Investment Opportunities - Investors are encouraged to consider ETFs with significant exposure to Coinbase, including First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT), Global X Blockchain ETF (BKCH), Fidelity Crypto Industry and Digital Payments ETF (FDIG), ARK 21Shares Blockchain and Digital Economy Innovation ETF (ARKD), and ARK Fintech Innovation ETF (ARKF) [2][7][9][12][15]

Group 1 - Coinbase is considered a solid company with a good quality service and a high level of trust, making it one of the most reliable options for crypto exchanges [1] - The analysis focuses on identifying undervalued stocks with growth potential, indicating a value investment approach [1]

Core Insights - Coinbase Global, Inc. reported a significant increase in net operating earnings per share for Q4 2024, reaching $3.39, which exceeded the Zacks Consensus Estimate by 74.7% and represented a more than three-fold increase year over year [1][2] - The company's total revenues for Q4 2024 were $2.3 billion, surpassing the Zacks Consensus Estimate by 21.3% and more than doubling year over year, driven by higher transaction revenues and subscription services [3][10] Financial Performance - Total trading volume in Q4 2024 more than doubled year over year to $439 million, exceeding the Zacks Consensus Estimate of $391 million [3] - Total transaction revenues surged nearly three-fold year over year to $1.56 billion, significantly above the Zacks Consensus Estimate of $1 billion [4] - Subscription and services revenues increased by 70.7% year over year to $641.1 million, driven by higher crypto asset prices and growth in Coinbase One subscribers, beating the Zacks Consensus Estimate of $586 million [5] - Adjusted EBITDA for the quarter was $1.3 billion, nearly four times higher year over year, while total operating expenses rose by 47.6% to $1.2 billion [6] Financial Position - As of December 31, 2024, Coinbase had cash and cash equivalents of $8.5 billion, a 66.2% increase from the end of 2023, while long-term debt rose by 42% to $4.2 billion [7] - Shareholders' equity reached $10.3 billion at the end of Q4 2024, up 63.6% from the previous year [7] Q1 2025 Outlook - Coinbase anticipates subscription and services revenues to grow sequentially, projected to be between $685 million and $765 million [8] - The company expects technology and development expenses to be in the range of $750 million to $800 million, reflecting increased variable expenses due to elevated trading volume [9]

Group 1 - Coinbase (NASDAQ: COIN) reported strong FY 2024 results, particularly in the last quarter, attributed to the historic re-election of Donald Trump and his pro-crypto campaign stance [1] - The company emphasizes a long-term investment approach, focusing on valuations rather than short-term price predictions [1] - The investment strategy has shifted to a simplified "Buy or Don't Buy" approach, moving away from issuing Sell ratings [1] Group 2 - The article reflects a cautious perspective on investment, aiming for continuous improvement and growth in understanding company fundamentals [1]

Core Insights - Coinbase Global, Inc. reported a revenue of $2.27 billion for Q4 2024, marking a year-over-year increase of 138.2% and an EPS of $3.39 compared to $1.04 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.84 billion by 23.65%, and the EPS surpassed the consensus estimate of $1.94 by 74.74% [1] Financial Performance Metrics - Trading Volume reached $439 billion, exceeding the six-analyst average estimate of $391.25 billion [4] - Institutional Trading Volume was $345 billion, compared to the five-analyst average estimate of $313.95 billion [4] - Consumer Trading Volume was $94 billion, surpassing the average estimate of $63.28 billion [4] - Net Revenue was reported at $2.20 billion, exceeding the eight-analyst average estimate of $1.62 billion [4] - Total Subscription and Services Net Revenue was $641.10 million, compared to the estimated $585.87 million, reflecting a year-over-year increase of 70.8% [4] - Transaction Revenue was $1.56 billion, significantly higher than the estimated $1.04 billion, representing a 194% year-over-year increase [4] - Other Revenue was $74.61 million, compared to the average estimate of $68.97 million, showing a 51.8% year-over-year change [4] - Net Transaction Revenue from Consumers was $1.35 billion, exceeding the average estimate of $859.14 million [4] - Net Transaction Revenue from Other Transactions was $67.60 million, compared to the estimated $43.01 million [4] - Institutional Net Transaction Revenue was $141.30 million, surpassing the average estimate of $104.13 million, reflecting a 285% year-over-year increase [4] - Other Subscription and Services Net Revenue was $91.40 million, exceeding the four-analyst average estimate of $63.75 million, with a year-over-year change of 96.6% [4] - Blockchain Subscription and Services Net Revenue was $214.90 million, compared to the average estimate of $174.84 million, representing a year-over-year change of 126% [4]