Wall Street analysts stay bullish on Coinbase after strong Q3, point to derivatives and stablecoins as next growth drivers

Coinbase reported a significant rebound in Q3 with $1.9 billion in total revenue, marking a 37% increase from the prior quarter, driven by higher ether trading and increased subscription/services income. Following the report, Wall Street firms issued upbeat notes, emphasizing that Coinbase is benefiting from a more balanced business model encompassing derivatives, stablecoins, and its Base network, though higher operating costs may temper near-term margins. Analysts from William Blair, JPMorgan, Benchmark, and Bernstein all maintained positive ratings, highlighting Coinbase's progress toward becoming a full-scale financial infrastructure company, with derivatives (like the Deribit acquisition) and stablecoin revenue seen as crucial for smoothing future results. JPMorgan noted a "commanding beat" but warned of rising expenses, while Bernstein suggested Coinbase is building "the AWS of crypto financial infrastructure" and could see a "crypto Venmo moment" with its new Base app.

(Source：The Block)