Coinbase shares are up sharply after the company’s first quarter results topped analyst estimates on both revenue and loss per share.
Barclays’ analyst Benjamin Buddis was particularly impressed by the increase in interest yield that resulted from higher spreads on certain"simple" trades that rolled out through Q1. While the trend “may not be sustainable long term,” he wrote, “[it] appears to be fairly sticky for now.” “While earnings were meaningfully better than expected, the outlook generally doesn’t seem as good,” they wrote, continuing with a neutral rating on the stock.“We see risk that limited bandwidth in Congress increases the likelihood that regulatory developments will largely be driven by regulators, rather than policymakers,” the Goldman team wrote. “Thus, we see limited near-term catalysts for increased retail engagement, adoption in the U.S.