Coinbase Global, Inc.’s COIN fourth-quarter results may have benefited from strong retail trading volume, according to an analyst at Needham.
SHIB Boost For Coinbase: Ahead of Coinbase’s quarterly results, Needham analyst John Todaro raised his fourth-quarter revenue and earnings estimates for the cryptocurrency exchange, citing higher trading volumes.
October 2021 was a strong month of strong retail activity, propelled by the Shiba Inu SHIB/USD rally, the analyst said. Shiba Inu rose to an all-time high of $0.000088 on Oct. 28 before the crypto market sell-off dragged it lower.
SHIB’s rally, Todaro said, helped the Coinbase App reach the number 2 ranking by downloads for the week ended Oct. 15, 2021.
“This occurred only one other time in 2021 when the Coinbase app hit that ranking in Q2 ’21, the current highest volume qtr for Coinbase,” the analyst said in the note.
Todaro, however, took down his estimates for retail trading fees, given reduced volatility in November and December that indicate lower retail activity for the two months, he said.
Related Link: Robinhood CEO Explains Why He’s Resisting Calls For Accepting Shiba Inu
Is Robinhood Missing The Boat? Trading app Robinhood Markets, Inc. HOOD last week reported underwhelming quarterly results that failed to boost the already sagging stock.
The trading app missed expectations and issued lackluster first-quarter guidance, as the crypto and meme craze faded.
The loyal Shib army has been vociferously calling upon Robinhood to list the meme crypto, although the trading app has shown reluctance to add more cryptos, citing a lack of clarity on the regulatory front.
Robinhood currently allows trading in seven cryptos – Bitcoin BTC/USD, Bitcoin Cash BCH/USD, Bitcoin SV BSV/USD, Dogecoin DOGE/USD, Ethereum ETH/USD, Ethereum Classic ETC/USD and Litecoin LTC/USD.
Coinbase Rating: Needham reiterated a Buy rating and $420 price target on Coinbase shares.
At last check, Coinbase shares were advancing 4.53% to $198.74.
Now Read: Coinbase Has 73M Users Across The World
Photo: Courtesy of Crypto Dost on Flickr