Robinhood’s Q4 Report Could Offer crucial perceptivity Into Coinbase’s Performance
As investors await Robinhood’s (HOOD) fourth- quarter earnings report, numerous are looking at the company’s cryptocurrency profit as a implicit index for Coinbase’s (COIN) forthcoming results. Judges anticipate a massive swell in Robinhood’s crypto- related earnings, which could gesture a also strong quarter for Coinbase, the largest intimately traded crypto exchange in the U.S.
Robinhood’s Crypto profit Anticipated to Skyrocket
Robinhood’s cryptocurrency trading profit is projected to witness an extraordinary 440 increase quarter-over-quarter, surging to$ 345.5 million from just$ 63.9 million in the former quarter, according to estimates from FactSet. This dramatic rise is largely attributed to a rejuvenescence in retail trading exertion, which boosted during the final months of 2024.
One of the crucial catalysts behind this renewed retail interest was the outgrowth of the U.S. presidential election in November. The palm of Donald Trump, extensively perceived by dealers as more favorable to fiscal requests and cryptocurrencies, sparked increased trading exertion on platforms like Robinhood. As a result, HOOD’s stock price has soared, climbing 350 over the once time and gaining 37 in just the first six weeks of 2025.
Beyond crypto, Robinhood’s overall profit is anticipated to see a significant jump as well. FactSet judges estimate that the company’s total Q4 profit will reach$ 934.9 million, marking a sharp rise from$ 660.5 million in the previous quarter. also, earnings- per- share( EPS) are read to come in at$ 0.41, further than doubling from$ 0.18 in Q3.
Robinhood’s Trading Data as a Bellwether for Coinbase
Robinhood’s trading volumes are nearly covered by judges as they frequently serve as a useful standard for estimating Coinbase’s performance. Given the literal correlation between the two companies’ crypto trading volumes, judges believe Robinhood’s strong Q4 figures may allude at a also bullish quarter for Coinbase.
Barclays critic Benjamin Buddish stressed Robinhood’s emotional reported crypto volumes, which reached roughly$ 69 billion as of December 27. This represents afive-fold increase compared to the former quarter and asix-fold rise on a time-over-year base. Given these numbers, Buddish predicts that Coinbase’s retail trading volume could exceed$ 108 billion in Q4, indeed when factoring in a lower” beta” for those volumes.
Coinbase’s forthcoming earnings report, listed for release on Thursday after request near, is anticipated to reflect this swell in trading exertion. FactSet estimates suggest that Coinbase’s Q4 profit will land at around$ 1.8 billion, making it one of the company’s strongest diggings in terms of trading volume. Meanwhile, the company’s EPS is projected to jump to$ 1.99, over significantly from$ 0.41 in the former quarter.
Stock Market Counteraccusations for HOOD and COIN
The anticipated strength of Robinhood’s crypto earnings has formerly had a notable impact on the company’s stock price, which has soared by 370 over the once time. As of the rearmost trading session, HOOD is priced at$ 54.33 per share. Coinbase has also served from the renewed enthusiasm in the crypto request, with COIN shares up 90 over the once time. presently trading at$ 269.88, Coinbase’s stock price will probably reply to Robinhood’s earnings as investors anticipate a analogous boost in the company’s own Q4 results. A strong performance from Robinhood could serve as a positive signal for Coinbase’s earnings, potentially driving COIN shares indeed higher. Again, if Robinhood’s crypto profit falls short of prospects, it may raise enterprises about the broader retail trading terrain, impacting both HOOD and COIN stocks.
The Broader Crypto Market and Retail Trading Trends
The swell in retail trading exertion during Q4 was driven by several crucial factors beyond the U.S. election. A more favorable macroeconomic outlook, including prospects of implicit interest rate cuts by the Federal Reserve in 2025, has contributed to increased investor confidence in both stocks and cryptocurrencies, also, the price of Bitcoin and other major cryptocurrencies endured significant rallies in late 2024, further fueling interest among retail dealers. Bitcoin, for case, crossed crucial resistance situations during the quarter, leading to advanced trading volumes across multiple platforms, including Robinhood and Coinbase.
Both Robinhood and Coinbase have been heirs of these trends, with retail dealers returning to the request in lesser figures. While Robinhood provides a broader range of trading services beyond crypto, Coinbase remains a pure- play crypto exchange, making its fiscal performance more directly tied to digital asset trends.
Looking Ahead What’s Next for Robinhood and Coinbase?
Robinhood’s earnings report will offer a pivotal regard into how retail dealers engaged with the crypto request in late 2024, potentially setting the stage for Coinbase’s earnings latterly in the week. However, it could support prospects of a blockbuster quarter for Coinbase, driving fresh interest in COIN shares, If Robinhood delivers strong figuresstill, the sustainability of this instigation remains a crucial question. Will retail dealers continue to pour into the request in 2025, or was Q4’s swell a temporary shaft driven by election- related excitement? The answer will probably depend on several macroeconomic and nonsupervisory factors, including financial policy opinions and implicit shifts in crypto regulations under the new administration.
For now, investors will be nearly watching Robinhood’s report for any perceptivity into the broader crypto trading terrain. As the company continues to expand its fiscal services immolations, its capability to subsidize on the growing interest in digital means will be critical to sustaining its upward line, also, all eyes will be on Coinbase when it releases its earnings on Thursday. Given the strong correlation between the two companies’ trading volumes, a robust report from Robinhood could set the tone for an inversely emotional quarter from Coinbase.
With both stocks having delivered significant earnings over the once time, the forthcoming earnings reports will serve as a crucial test for whether the recent rally in crypto- related equities has further room to run — or if investors should brace for a implicit withdrawal.
As the crypto request continues to evolve, companies like Robinhood and Coinbase will remain at the center of the action, offering precious perceptivity into the shifting geography of digital asset trading.
