Main motion in crypto in 2024’s last three months is predicted to point out up within the outcomes of buying and selling app Robinhood (HOOD).
A surge in person exercise main as much as after which following the election of Donald Trump in November has analysts anticipating a 440% quarterly soar in HOOD’s cryptocurrency buying and selling income to $345.5 million, in line with FactSet.
Shares of HOOD have soared 350% over the previous 12 months as retail merchants have returned to the app in anticipation of a extra favorable macro setting for shares and crypto and are greater by 37% in simply the primary six weeks of 2025.
Robinhood’s general income within the fourth quarter is estimated to land at $934.9 million, up from $660.5 three months earlier, in line with FactSet. Earnings-per-share are anticipated to be $0.41 versus $0.18 the earlier quarter.
Robinhood’s buying and selling information, which is disclosed usually by the corporate, is usually utilized by analysts to estimate Coinbase’s (COIN) buying and selling quantity, which traditionally has moved in correlation with HOOD.
In accordance with analyst Benjamin Buddish at Barclays, the buying and selling app noticed very robust general progress in reported crypto volumes with whole volumes of roughly $69 billion by Dec. 27. This may be a five-fold improve quarter-over-quarter and a six-fold improve year-over-year, the financial institution famous.
Because of this, Buddish sees Coinbase’s retail quantity to land north of $108 billion, even assuming a decrease “beta” for these retail volumes, he mentioned.
Coinbase vs. Robinhood buying and selling volumes (Supply: Firm studies/Barclays)
Coinbase, which declares fourth quarter earnings on Thursday after the shut, is estimated to report certainly one of its strongest quarter by way of buying and selling quantity up to now resulting in $1.8 billion in income, in line with FactSet estimates. Earnings-per-share are estimated at $1.99 versus $0.41.
Shares of COIN will possible be affected by Robinhood’s earnings in anticipation of an analogous optimistic report from the crypto trade on Thursday. COIN is up 90% over the previous 12 months, presently buying and selling at $269.88. HOOD, however, is up 370% over the identical interval, buying and selling at $54.33 at press time.
