ZACKS·2025-12-05 03:06Core Insights - Hopes for a rate cut by the Fed have positively impacted stocks and the crypto market, with Bitcoin rebounding from recent lows [1] - Coinbase (COIN) is currently 38% below its 52-week high, while Strategy (MSTR) is nearly 60% off its one-year peak [2] Market Dynamics - Bitcoin's price had previously surged to over $120,000 following its halving cycle in 2024, raising concerns about a potential bubble [4] - Broader risk factors affecting Bitcoin include macroeconomic pressures, leveraged liquidations, and weak investor sentiment [3] Company Performance - Coinbase's annual sales are projected to grow by high double digits in fiscal years 2025 and 2026, with estimates exceeding $8 billion [7] - However, Coinbase's profitability is expected to decline next year due to higher expansion costs, with FY26 EPS projected at $5.87 [8] Strategy's Financial Outlook - Strategy's potential FY25 EPS is projected at $78.04, a significant increase from earlier expectations of a loss [10] - FY26 EPS estimates for Strategy have risen dramatically to $51.60 from previous expectations of -$0.40 [11] Valuation and Investment Sentiment - Despite positive EPS revisions for Strategy, the stock is rated Zacks Rank 3 (Hold), indicating caution in the current market [14] - Coinbase's valuation at 34X forward earnings appears more reasonable compared to past premiums, but the trend in EPS revisions does not suggest a strong rebound [13]