Crypto-Related Stocks May Have Hit Rock Bottom Before Q1 Results, Bernstein Analysts Suggest
Analysis from Bernstein indicates cryptocurrency-associated stocks including Coinbase, Robinhood and Figure are currently trading approximately 60% beneath their 2024 highs, though forecasters anticipate continued revenue and profit expansion extending to 2027.
In a communication to investors on Monday, Bernstein analysts suggested that the significant downturn experienced by cryptocurrency-associated equities has generated a more compelling opportunity for entry into tokenization and blockchain-based finance investment themes, all while preserving positive ratings on Coinbase, Robinhood and Figure.
According to a client memo from Bernstein, the firm sustained Outperform classifications across all three corporations while reducing target prices, contending that the market correction had enhanced the risk-to-reward balance for those looking to gain exposure to blockchain-based financial services.
Stock values for the three companies have declined in a range from 57% to 62% compared to their 2025 peak levels, though Bernstein's projections still anticipate double-digit expansion in both revenue and profit margins extending through 2027. The investment firm reduced its valuation target for Coinbase (COIN) from $440 down to $330, for Robinhood (HOOD) from $160 to $130, and for Figure (FIGR) from $72 to $67, pointing to short-term headwinds and the likelihood of disappointing first-quarter financial performance.
Stocks with cryptocurrency exposure were trending upward during Monday's premarket session, providing initial indicators of market stabilization following the recent decline. COIN climbed approximately 2.5%, HOOD advanced roughly 2%, and FIGR increased around 1.7% prior to market opening, demonstrating a modest recovery in digital asset-related equities.
According to Bernstein's assessment, the investment opportunity is connected to a wider transformation toward tokenized financial systems, encompassing stablecoins, tokenized lending products, and blockchain-based prediction markets, which the firm anticipates will gather momentum throughout the upcoming years. The brokerage maintained that the recent price decline has produced a more favorable entry opportunity into these investment themes.
Coinbase, Robinhood, Figure key equity plays
Figure is characterized as the most direct tokenization investment opportunity. Bernstein's projections suggest its consumer lending marketplace transaction volumes will achieve $12.8 billion during the current year and grow to $16.5 billion by 2027 as the organization broadens its offerings beyond home equity credit lines into related categories including small business financing and automobile lending.
The future prospects for Robinhood are connected to emerging income channels. Bernstein anticipates prediction markets developing into a $240 billion sector, with event-based contracts accounting for approximately 17% of the platform's trading income and roughly 10% of overall revenue in the following year. Expansion in margin lending services, subscription offerings and deposit-based revenue is also projected to bolster earnings performance alongside any rebound in cryptocurrency trading activity.
Regarding Coinbase, Bernstein projects the company's business composition will continue transitioning away from spot market trading toward derivatives products and stablecoin-generated revenue. The research firm estimates derivatives trading could represent up to 14% of trading-related revenue by 2027, while fees from stablecoins, especially those associated with Circle (USDC), may generate about 19% of overall revenue in the next year, notwithstanding recent volatility in market conditions.
This perspective expands upon Bernstein's analysis from the previous week following a substantial decline in Circle's (CRCL) stock price on Tuesday, during which the firm contended that USDC continues to represent a sustainable long-term income generator. The analysts noted that Circle retains the majority of reserve interest yields while distribution platforms such as Coinbase facilitate product adoption, meaning stablecoin-derived income can maintain its compounding trajectory even if regulatory authorities impose restrictions on the amount of yield that can be transferred to ultimate users.