At Extreme Investor Network, we are constantly monitoring the latest developments in the investment world to provide our readers with valuable insights and analysis. Recently, Coinbase Global released its third-quarter financial results, which were weaker than expected due to subdued crypto prices in what is typically the slowest quarter for crypto assets.
Despite this, many analysts on Wall Street still view Coinbase as a buy, especially with the upcoming election and its potential impact on cryptocurrency markets. The post-election environment for crypto is expected to be positive, regardless of the outcome, as demand for bitcoin is on the rise, while supply is decreasing and interest rates are expected to remain low.
Analysts like Joseph Vafi of Canaccord Genuity believe that a change in the regulatory backdrop, possibly influenced by the election results, could act as a significant catalyst for Coinbase’s growth. Additionally, federal legislation could open up opportunities for state-level expansion and provide pricing power for Coinbase’s retail trading business, according to Citigroup’s Peter Christiansen.
Revenue from Coinbase’s subscription and services, including stablecoins, staking, and leverage for Prime traders, saw a 66% increase from a year ago, despite a slight dip in the third quarter. CEO Brian Armstrong expressed optimism about the future, noting that he expects to see a pro-crypto Congress next year.
While analysts at Piper Sandler and Bank of America remain cautiously optimistic about Coinbase, citing the need for more regulatory clarity and potential overhangs from SEC lawsuits, the overall sentiment on Wall Street is positive. Both Citi and Canaccord Genuity have buy ratings on Coinbase, emphasizing the long-term potential of the company in the crypto market.
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