A top Bank of America analyst, Craig Siegenthaler, now favors Robinhood over Coinbase in the competitive crypto exchange race, based on their recent Q2 2025 earnings and business performance.
Key points from his analysis:
Siegenthaler raised Robinhood’s price target to $119, implying a 19.1% upside, while lowering Coinbase’s to $369 with a "Hold" rating.
Robinhood reported a strong 45% year-over-year revenue increase to $989 million in Q2 2025, driven by a 65% jump in transaction-based revenues, including crypto trading which nearly doubled to $160 million.
Robinhood's strategy includes integrating institutional flow from Bitstamp and expanding retail trading, along with launching tokenization offerings like Robinhood Chain for illiquid assets.
In contrast, Coinbase missed earnings expectations with EPS of $0.12 versus $1.25 expected and revenue of $1.5 billion, down 40% in altcoin trading volumes, impacting its fee-based revenue.
Coinbase’s stock fell around 16% following the earnings miss, while Robinhood's shares dropped slightly amid overall market conditions.
Siegenthaler sees Robinhood as having better sales execution and expense management, positioning it favorably for growth amid ongoing regulatory and market volatility.
Both companies remain sensitive to crypto market trends and regulatory developments, but Robinhood’s diversified approach and growth in crypto revenues have improved its outlook.
In summary, Bank of America's top analyst views Robinhood as the stronger crypto exchange investment currently, citing its rapid revenue growth and expansion strategy, while Coinbase struggles with lower altcoin volumes and weaker earnings.