Goldman Sachs Sees Beat Quarters for Coinbase (COIN) and Robinhood (HOOD) on Strong Crypto Activity and Retail Trading Volumes
Get Alerts COIN Hot Sheet
Rating Summary:
14 Buy, 13 Hold, 6 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
Goldman Sachs analyst Will Nance believes that US online brokers are likely to report very strong results for 4Q on the back of the robust crypto activity and retail trading volume.
Nance expects total retail trading revenue (equity + options) at Charles Schwab (NYSE: SCHW), Interactive Brokers (NASDAQ: IBKR), and Robinhood (NASDAQ: HOOD) to be up 3%, 5%, and 6% QoQ, respectively.
Similarly, the analyst sees total crypto trading revenues at Coinbase (NASDAQ: COIN) and HOOD up 62% and 18% QoQ, respectively.
“Nevertheless, and despite a rising tide, stock performance has been heavily bifurcated, with higher multiple fintech/crypto names such as HOOD and COIN declining roughly 30% and 60% since 3Q21 earnings, SI down over 40% from recent all-time highs, and with traditional brokerages such as SCHW and IBKR rallying 26% and 5% on the back of a broader rotation into value and higher interest rate expectations. With healthy activity levels, we see solid beats across the board, with COIN, SI and HOOD putting up the strongest results relative to expectations,” Nance said in a client note.
By Senad Karaahmetovic | [email protected]
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs on Meta Platforms Inc. (META): 'We expect investors to have an initial negative reaction'
- Ternium SA (TX) Tops Q1 EPS by 17c
- Core Laboratories (CLB) Misses Q1 EPS by 13c
Create E-mail Alert Related Categories
Analyst Comments, Hot CommentsRelated Entities
Goldman Sachs, Earnings, Senad KaraahmetovicSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!