In the final quarter of 2024, both Coinbase and Robinhood reported financial results that significantly surpassed market expectations, driven by a surge in cryptocurrency trading volumes. This performance has led analysts to adjust their price targets for both companies. Coinbase reported a revenue of $2.3 billion for Q4 2024, an 88% increase from the previous quarter, with a net income of $1.3 billion. Retail trading volumes reached $94 billion, while institutional volumes hit a three-year high of $345 billion. This growth is attributed to a post-election boost in market optimism, as President Donald Trump has pledged to establish the U.S. as “the world’s crypto capital” and has appointed industry-friendly leaders to key regulatory positions. Over the past year, Coinbase’s stock has risen approximately 112%. Analysts from JPMorgan have raised their price target for Coinbase’s stock (COIN) to $344, up from $264. They noted, “The fourth quarter, and we would argue 2024 overall, was a pivotal and consequential period for the crypto ecosystem—market caps exploded, volumes jumped, new participants entered the market, and regulatory confidence completely flipped.” Robinhood, primarily known for stock trading, has seen substantial growth in its cryptocurrency segment. In Q4, the company reported crypto transaction revenue of $358 million, accounting for approximately 35% of its total revenue—the highest contribution to date. This represents a 700% increase in crypto revenue year-over-year. Robinhood’s stock has surged about 365% in the past 12 months. JPMorgan analysts have increased their price target for Robinhood’s shares (HOOD) to $45 from $39, highlighting the growing importance of crypto trading in the company’s business model. They stated, “Typically, we see crypto revenue contribute 10-20% of revenue any given quarter.” The surge in cryptocurrency trading volumes has been largely driven by renewed market optimism following the U.S. election. President Trump’s administration has expressed strong support for the cryptocurrency industry, with promises to position the U.S. as a global leader in the crypto space. This favorable regulatory environment has encouraged increased participation from both retail and institutional investors, contributing to the impressive financial performances of both Coinbase and Robinhood. The combination of favorable political developments and a bullish cryptocurrency market has propelled Coinbase and Robinhood to exceed financial expectations in Q4 2024. Analysts remain optimistic about the future growth prospects of both companies, as they continue to capitalize on the expanding crypto ecosystem.
