Coinbase earnings: Wall Street divided on trading rebound after Robinhood crypto revenue sinks 55%
Coinbase Global COIN$158.43 reports third-quarter earnings after the market close on Thursday, with analysts looking for signs that crypto trading is recovering after a difficult stretch for the industry. Trading activity picked up in September after hitting multiyear lows in June, fueled by a rebound in crypto prices. Analysts disagree on how much that recovery helped the crypto exchange and whether it will last. The uncertainty comes after Robinhood Markets HOOD$90.60 reported a 55% drop in crypto transaction revenue as crypto trading volume fell 38% in the period. Revenue from options and equities trading, in contrast, climbed while prediction markets brought in $173 million, more than six times the year-earlier figure. That split matters for Coinbase, which still gets a large share of its revenue from customers buying and selling cryptocurrencies. Unlike a traditional stockbroker that can rely on a mix of interest income, investment products and other services, Coinbase remains sensitive to swings in crypto prices because trading volumes tend to shrink when prices fall, leaving Coinbase with lower fee revenue. Wall Street split on trading recovery Wall Street analysts forecast Coinbases trading business improved from the second quarter, but disagree on how much of that activity will translate into revenue. JPMorgan, which rates Coinbase
