Stock of the Day: Coinbase Earnings Eye Crypto’s Trump Bump

Donald Trump’s return to the White House has fueled optimism for crypto, pushing Coinbase stock up 40% to $272 and Bitcoin up 42% to $96,882. Investors are now eager to see if Coinbase’s Q4 earnings match the hype. Analysts project EPS of $2.11 and revenue of $1.84 billion, nearly doubling last year’s figures of $1.04 EPS and $954 million revenue.

Trump’s pro-crypto stance, including lighter regulations and crypto-friendly appointments at the SEC and other agencies, has been a boon. Coinbase, previously sued by the SEC in 2023, may now see the case dropped or settled favorably.

However, reduced regulation could invite competition from traditional brokers entering the crypto space. Coinbase’s Q4 trading volume is estimated at $216 billion, up from Q3 but still far below early 2024 peaks. Growth in its subscription and services business, projected at $611 million, will also be closely watched.