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📈 Coinbase's $1.3B Quarter
Google joins $350M round for Apptronik, DraftKings stock rallies, Airbnb shares pop 15%, Steve Madden to buy Kurt Geiger for $360M, Coinbase's revenue surges with post-election crypto rally
Evelio Silvera
February 14, 2025
Good morning.
⚡ The Fast Five → Google joins $350M round for Apptronik, DraftKings stock rallies, Airbnb shares pop 15%, Steve Madden to buy Kurt Geiger for $360M, Coinbase's revenue surges with post-election crypto rally
🔎 Market Trends → Wall Street ends higher after Trump unveils tariff plan; US Stock Futures Steady as Trump Delays Reciprocal Tariffs
And now…
⏱️ Your 5-minute briefing for Friday, February 14, 2025:
MARKET BRIEF
Before the Open
As of market close 02/13/2025.
Pre-Market
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Fear & Greed
Markets in Review
Markets Rally as Traders Weigh Inflation, Earnings, and Tariffs
The Nasdaq jumped 1.5% to 19,945.6, while the S&P 500 gained 1% to 6,115.1. The Dow advanced 0.8% to 44,711.4 as all sectors finished higher, led by materials and consumer discretionary stocks.
The Big Picture:
Wall Street shook off hotter-than-expected inflation data, focusing instead on solid corporate earnings and Trump’s latest tariff agenda. Producer prices climbed more than forecast in January, fueled by higher diesel costs, raising concerns over persistent inflationary pressures.
Meanwhile, unemployment claims fell more than expected, reinforcing the Fed’s stance that the labor market remains resilient. Bond markets reacted, with the 10-year Treasury yield dropping 9.9 basis points to 4.54%, while the 2-year yield slipped 5.6 basis points to 4.31%—signaling expectations for steady policy ahead.
Trump signed a memorandum directing officials to craft "reciprocal tariffs" on imports, aiming to level the global playing field. West Texas Intermediate crude oil ticked up 0.1% to $71.41 a barrel, while gold surged 1% to $2,958 per ounce as investors sought inflation hedges.
Market Movers:
AppLovin (APP) soared 24% after the ad-tech firm beat Q4 estimates, posting stronger-than-expected revenue.
MGM Resorts (MGM) rallied 17%, leading the S&P 500 after its earnings and revenue came in above Wall Street’s worst fears.
West Pharmaceutical (WST) plunged 38%, the worst performer on the S&P 500, as the company issued a downbeat 2025 forecast.
Trade Desk (TTD) collapsed 33%, leading Nasdaq losers after posting weaker-than-expected Q4 revenue, spooking investors about digital ad spending.
What They’re Saying:
"With inflation still elevated and labor markets firm, the Fed is unlikely to cut rates anytime soon—possibly not until year-end," Oxford Economics said in a note.
WHAT WE’RE WATCHING
Events
Today: Census Bureau - Retail Sales Ex Autos m/m - 8:30am
Why You Should Care: It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Today: Census Bureau - Advance Retail Sales m/m - 8:30am
Why You Should Care: It's the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
Earnings Reports
Today: Honda, Moderna, TreeHouse Foods, AMC Networks, LiveOne, Enbridge
Monday: Sphere Entertainment, JELD-WEN, BHP, Transocean, Huntsman Corporation
MARKET BRIEF
Leading News
Coinbase's Crypto Comeback: Record Profits Signal Digital Assets' Renaissance
Why it matters:
Coinbase's ($COIN) stunning 130% revenue surge and $1.3B quarterly profit demonstrates that institutional adoption of digital assets has reached an inflection point, particularly as traditional finance increasingly embraces crypto infrastructure.
Zoom Out:
The crypto market's evolution from speculative playground to legitimate financial infrastructure is crystallizing. Coinbase's extraordinary Q4 performance – delivering $4.68 EPS against expected $1.81 – reflects both surging institutional interest and regulatory tailwinds.
The numbers tell a compelling story: $439B in total trading volume represents a watershed moment for crypto liquidity. But more intriguingly, the revenue mix is shifting from pure retail speculation toward more sustainable institutional engagement.
Key Insights:
Trading Renaissance: The 185% YoY volume increase isn't just about price appreciation – it reflects deeper market maturity. Institutional trading volume's 176% surge suggests sophisticated players are building permanent crypto positions.
Revenue Diversification: While trading still comprises 68.5% of revenue, Coinbase's strategic pivot toward subscription services and USDC stablecoin infrastructure points toward more predictable future cash flows.
Regulatory Clarity: The company's emphasis on compliant stablecoin development through USDC (currently 26% market share) positions it favorably for anticipated stablecoin legislation.
Market Pulse:
"The two primary factors underpinning these stronger macroeconomic factors were the launch of the bitcoin ETF products in Q1'24, and the election of a pro-crypto President and Congress in Q4'24" - Coinbase Shareholder Letter
Bull’s Take:
While crypto volatility remains elevated, Coinbase's institutional momentum and regulatory-first approach suggest we're entering a new phase of digital asset maturation. For long-term investors, the company's evolution from pure exchange to digital asset infrastructure player offers an intriguing way to participate in crypto's institutional adoption without direct token exposure.
Headlines
Google joins $350 million funding round for humanoid robotics company Apptronik (link)
DraftKings rallies on upbeat full-year sales outlook, which doesn’t include this big event (link)
Steven Madden to buy UK-based luxury shoe brand Kurt Geiger in $360 million deal (link)
Thoma Bravo-backed SailPoint valued at $12.8 billion in muted market return (link)
GE Healthcare’s business grows with boost from imaging and diagnostic drug units (link)
Airbnb shares pop 15% on better-than-expected earnings and revenue (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to HumansNoContext