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Coinbase Global Stock: Buy, Sell, or Hold?

AInvestSaturday, Feb 1, 2025 5:41 am ET
6min read


Coinbase Global, Inc. (NASDAQ: COIN), the leading cryptocurrency exchange in the United States, has been making waves in the financial world since its inception in 2012. As the crypto market continues to evolve, investors are wondering whether to buy, sell, or hold Coinbase stock. This article will delve into the company's recent performance, analyst recommendations, and market trends to help you make an informed decision.



Recent Performance and Financials

Coinbase Global reported a net profit of $95 million in 2023, reversing a $2.6 billion net loss in 2022. This significant improvement in profitability is a positive sign for the company's financial health. Additionally, Coinbase's revenue growth rate for the twelve months ending March 31, 2024 was 41.89% year-over-year, indicating a strong performance in the crypto market.



Analyst Recommendations

The average analyst rating for Coinbase stock from 21 stock analysts is "Buy," with a 12-month stock price forecast of $275.4, indicating a decrease of -5.47% from the latest price. This positive sentiment from analysts suggests that they believe Coinbase is likely to outperform the market over the next twelve months.

Market Trends and Competitors

Coinbase faces competition from other cryptocurrency exchanges such as Binance, Kraken, and Gemini. However, Coinbase's market share within the Miscellaneous Financial Services Industry was 93.65% as of Q3 2024, and within the Financial Sector, it was 93.65%. This dominant market position contributes to Coinbase's stock performance.

Regulatory Environment and Strategic Partnerships

Coinbase has been actively engaging with regulators and expanding its services globally. For instance, it received approval to launch in Argentina and has added high-profile members to its global advisory council, including former U.S. Senator Kyrsten Sinema and Chris LaCivita, co-campaign manager for President Trump. These regulatory advancements and strategic partnerships can positively impact Coinbase's stock performance.

Conclusion: Buy, Sell, or Hold?

Based on Coinbase's recent performance, analyst recommendations, and market trends, the most appropriate action for investors is to Buy Coinbase stock. The company's strong financials, dominant market position, and strategic partnerships make it an attractive investment opportunity in the cryptocurrency exchange industry. However, it is essential to keep in mind that the crypto market is highly volatile, and Coinbase's stock price may experience fluctuations in the short term. Therefore, investors should maintain a long-term perspective and monitor the company's progress closely.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.