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Bernstein: With cryptocurrency stocks currently experiencing a sharp decline, Coinbase, Robinhood, and Figure’s first-quarter earnings reports may have hit bottom
Svmuu News: Bernstein noted that cryptocurrency-related stocks are currently trading at a “significant discount” following a broad market decline, with valuations reflecting weak short-term market sentiment rather than long-term growth potential.In its report, the firm noted that stocks related to digital asset infrastructure—including exchanges, brokerages, and tokenization platforms—are currently trading at approximately 60% below recent highs, despite the continued expansion of their underlying businesses in markets such as stablecoins, derivatives, prediction markets, and the tokenization of real-world assets. This view aligns with the firm’s recent stance that part of the sell-off in crypto stocks—including concerns related to U.S. regulation (Circle)—may have overreacted to fundamentals. Bernstein maintained its “Outperform” rating on Coinbase.However, it lowered the CRCL price target from $440 to $330. Despite a decline in trading volume in the first quarter, analysts expect earnings growth to remain steady. They also forecast that revenue will grow at a compound annual growth rate of approximately 26% through 2027. Bernstein believes stablecoins have played a major role, with Coinbase accounting for roughly half of Circle USDC revenue, while derivatives and new products are also beginning to contribute more to this portfolio. (The Block)
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