
As HOOD gains more share in the crypto space, analysts at Mizuho see it helping to pressure Coinbase (NASDAQ:COIN) shares, with the firm maintaining an Underperform rating and $145 price target on the stock in a note Friday.
The firm notes that after analyzing 1Q volume data points, Coinbase lost retail market share to Robinhood (NASDAQ:HOOD) in the first quarter.
"Our analysis shows that COIN's share of combined COIN consumer + HOOD retail crypto volumes declined by ~800bps Q/Q in 1Q to a record low of 61%," explains Mizuho.
"We estimate that share held at 61% in April, based on disclosures the companies made on their 1Q earnings calls," they add. "Why is this important? COIN is heavily reliant on retail transaction revenue, which comprises nearly 60% of its overall mix and nearly 90% of total transaction revenue."
As a result, Mizuho lowered its 2024 revenue estimates for Coinbase based on lighter-than-expected daily trading volumes in April. Its 2024 EBITDA estimate moved slightly higher based on better cost control.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.