Robinhood’s Q4 Surge in Crypto Revenue Sets the Stage for Coinbase’s Report

Robinhood (HOOD) is poised to reveal a significant increase in its crypto trading revenue for the fourth quarter of 2024, with analysts projecting a 440% rise to $345.5 million, according to FactSet. This impressive growth comes as a result of a spike in user activity leading up to and following the election of Donald Trump in November.

Robinhood’s shares have surged by 350% over the last year, reflecting a resurgence in retail trading activity, with the platform benefiting from a more favorable macroeconomic environment for both stocks and cryptocurrency. The company’s total revenue for Q4 is expected to reach $934.9 million, up from $660.5 million in the previous quarter, with earnings-per-share forecasted to jump to $0.41, compared to $0.18 in Q3.

The rise in Robinhood’s crypto trading volume has become an important indicator for other exchanges, particularly Coinbase (COIN). Barclays analyst Benjamin Buddish anticipates that Coinbase will report retail trading volumes exceeding $108 billion, using Robinhood’s reported total volume of $69 billion through December 27 as a key reference point.

Coinbase’s fourth-quarter earnings, due to be announced Thursday, are expected to show strong growth, with $1.8 billion in revenue and earnings-per-share expected to reach $1.99, a significant increase from the previous quarter’s $0.41.

With Robinhood’s earnings performance, investors are likely to have heightened expectations for Coinbase’s results, with the latter’s stock trading at $269.88, up 90% in the past year. Robinhood’s stock, on the other hand, has surged by 370%, reaching $54.33 at the time of writing.