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 HOOD and Coinbase COIN.
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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 – Robinhood Markets HOOD and Coinbase COIN 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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Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
