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Zacks Investment Ideas feature highlights Robinhood Markets and Coinbase

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For Immediate Release

Chicago, IL – January 23, 2025 – Today, Zacks Investment Ideas feature highlights Robinhood Markets (HOOD - Free Report) and Coinbase (COIN - Free Report) .

Tap into Crypto Exposure with These 2 Stocks

Crypto has caught many eyes over recent months, with investors clamoring for exposure following the bullish move. The U.S. election helped light the fire in a big way, with President-elect Donald Trump’s favorable stance on digital assets providing a big boost.

But it’s no secret that crypto is a volatile asset class, spooking many with a more conservative approach. Still, market participants can still obtain decent exposure through several stocks, a list that includes Robinhood Markets and Coinbase.

Both companies facilitate crypto trading services, with upcoming results likely to be positive thanks to higher inflows and trading fees. Let’s take a closer look at each for those seeking exposure to cryptocurrency.

Robinhood Sees Crypto Transactions Soar

Robinhood’s easy-to-use platform lets investors trade a wide variety of assets, which includes cryptocurrencies. Analysts have taken a bullish stance on the company’s upcoming quarterly release, with the $0.41 per share estimate up more than 120% over the last year and suggesting 1200% growth.

Cryptocurrencies revenues of $61 million in its Q3 blasted 165% higher year-over-year to $61 million. And crypto notional trading volumes of $14.4 billion melted 112% year-over-year.

As shown by the year-over-year growth comps, the company’s crypto trading has rebounded in a big way. The company has overall struggled to exceed our consensus expectations concerning crypto-based revenues in recent periods, as shown below.

Coinbase to See Outsized Sales Growth

Coinbase is the largest U.S. cryptocurrency exchange. The outlook for its upcoming release has been considerably bullish, with the $0.87 Zacks Consensus EPS estimate up 93% over the last several months. Revenue revisions have also followed the same path, with COIN expected to see 67% year-over-year top line growth.

The company’s transaction revenues have overall been mixed relative to our consensus expectations over recent quarters. It’s reasonable to expect a strong print here in its next quarterly print given the current trading environment.

Bottom Line

Crypto has again gripped investors, with the asset class going on a massive run over recent months. The momentum is undeniable, and for those seeking exposure through stocks, both companies above would provide precisely that.

Both companies stand to benefit in a big way from higher trading volumes, and we’ll likely see this development in their upcoming quarterly results.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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Coinbase Global, Inc. (COIN) - free report >>

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