Shares of Coinbase (COIN) gained in after-hours trading after the cryptocurrency exchange reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.14, which was a big miss compared to analysts’ consensus estimate of $0.91 per share. Still, this was better than last year’s figure of -$0.42 per share.
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However, sales increased by 104.8% year-over-year, with total revenue hitting $1.45 billion and Subscription and Services revenue coming in at almost $600 million. Total revenue beat analysts’ expectations of $1.365 billion.
Bitcoin’s (BTC-USD) resurgence has undoubtedly helped the company’s financial situation, as the increased volume of transactions meant more commission revenue. Interestingly, investors could have anticipated the strong year-over-year gains and weak quarter-over-quarter results by simply looking at Coinbase’s website traffic. As per the image below, we can see the number of visitors rose almost 26% during the most recent quarter when compared to last year but fell over 21% when compared to last quarter.
Is COIN a Good Buy Now?
Turning to Wall Street, analysts have a Moderate consensus rating on COIN stock based on eight Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 137% rally in its share price over the past year, the average COIN price target of $258.06 per share implies 20.4% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
