Coinbase Surpasses 200-Day SMA: Should You Consider Buying the Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 12 2025
0mins
Source: NASDAQ.COM
Coinbase's Market Position: Coinbase is experiencing a bullish trend, trading above its 200-day SMA, and has seen a 98.7% increase in shares year-to-date, significantly outperforming the industry and sector averages. The company is expanding its offerings and market presence through strategic initiatives, including the integration of decentralized exchange (DEX) trading and acquisitions.
Financial Performance and Risks: Despite a strong liquidity position and positive EBITDA for eight consecutive quarters, concerns about valuation arise due to a high price-to-earnings ratio and projected declines in earnings for 2025 and 2026. Analysts express caution regarding potential risks from crypto asset price volatility and the company's ability to meet financial obligations amidst a premium valuation.
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Analyst Views on HOOD
Wall Street analysts forecast HOOD stock price to rise
20 Analyst Rating
16 Buy
4 Hold
0 Sell
Strong Buy
Current: 96.710
Low
130.00
Averages
156.24
High
181.00
Current: 96.710
Low
130.00
Averages
156.24
High
181.00
About HOOD
Robinhood Markets, Inc. is focused on providing financial services offering retail brokerage, crypto, advisory, digital banking services, and private markets access to investors. Its offerings include Brokerage, Robinhood Crypto, Custody, Robinhood Wallet, Robinhood Gold, and Robinhood Gold Card. Brokerage services include investing, options trading, fractional trading, recurring investment, access to investing on margin, fully paid securities lending, cash sweep, instant withdrawals, Robinhood retirement, 24-hour market, joint investing accounts, and event contracts. It also offers a variety of ways for its customers to grow their financial knowledge, including Robinhood Learn, In-App Education, Newsfeeds, Sherwood Snacks, and Crypto Learn and Earn. It also operates regulated crypto platforms including Bitbuy and Coinsquare. Its self-clearing system, order routing system, data platform, and other back-end infrastructure allow its customers to focus on investing, saving and spending.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Robinhood Sees Customer Growth and Service Expansion
- Significant User Growth: Robinhood's annual revenue surged from $959 million in 2020 to $4.5 billion in 2025, with its customer base expanding from 12.5 million to 27 million, demonstrating strong appeal among younger investors and solidifying its market position.
- Gold Membership Expansion: By the end of 2025, Robinhood had 4.2 million Gold subscribers, reflecting a 58% increase from 2024, which not only boosted revenue streams but also enhanced customer loyalty and engagement.
- Improved Profitability: Robinhood's adjusted EBITDA turned positive in 2023, rising by 167% in 2024 and another 76% to $2.5 billion in 2025, primarily driven by higher interest rates and increased trading fees, showcasing its resilience in a competitive fintech landscape.
- Future Growth Expectations: Analysts project that Robinhood's revenue and adjusted EBITDA will grow at CAGRs of about 15% from 2025 to 2028, and despite its enterprise value of $82 billion, the ongoing appeal to younger investors and the expansion of Gold memberships may justify its higher valuation.
See More
Wednesday ETF Trading Dynamics Analysis
- Intel Trading Performance: Intel's stock rose approximately 4.1% on Wednesday with over 49.7 million shares traded, indicating investor confidence in its future prospects, potentially driving further growth in the semiconductor market.
- Nvidia Trading Situation: Although Nvidia's stock remained flat, it saw a trading volume exceeding 49.1 million shares, suggesting ongoing market interest, which may reflect investor expectations regarding its technological innovations.
- Robinhood Market Performance: Robinhood Markets performed the best on Wednesday, with its stock rising about 11%, likely linked to increased user growth and trading activity, further solidifying its market position in retail trading platforms.
- Carvana Trading Decline: Carvana's stock fell approximately 7.8%, lagging behind other components of the iShares Disciplined Volatility Equity Active ETF, which may reflect market concerns about its financial health, impacting its future financing capabilities.
See More
Robinhood's Strategic Shift to a Broader Financial Platform
- Strategic Transformation: Robinhood is striving to move beyond a trading platform by planning to build a broader financial platform around assets, subscriptions, retirement accounts, advisory services, and AI tools, aiming for long-term growth through the integration of customers' financial lives.
- Ecosystem Development: If customers can keep more of their financial activities within Robinhood's ecosystem, this transformation could create a powerful long-term growth narrative, enhancing customer loyalty and market share.
- Execution is Crucial: However, given the stock's premium valuation, successful execution will be critical, as any strategic missteps could negatively impact the company's stock price and investor confidence.
- Market Response: As of June 5, 2026, Robinhood's stock price rose by 11.40%, indicating initial market approval of its transformation strategy, but future performance will require close monitoring.
See More
Robinhood's Shift to a Broader Financial Platform Could Drive Growth
- Strategic Transformation: Robinhood is striving to move beyond trading by building a broader financial platform centered around assets, subscriptions, retirement accounts, advisory services, and AI tools, which could create a strong long-term growth potential if successful.
- Customer Retention: Should customers integrate more of their financial lives into Robinhood's ecosystem, it would significantly enhance customer retention rates, thereby boosting the company's market competitiveness and profitability.
- Valuation Pressure: However, the stock's premium valuation means that execution is critical, as any strategic missteps could lead to significant stock price volatility and impact investor confidence.
- Market Performance Comparison: Despite Robinhood's substantial transformation potential, analysts note that it is currently not included in the “Top 10 Best Stocks” list, indicating a cautious market sentiment regarding its future performance, which may affect its short-term stock price outlook.
See More
Deutsche Bank Raises Robinhood Price Target to $105 Amid Growth Prospects
- Price Target Increase: Deutsche Bank raised Robinhood's price target from $103 to $105 while reiterating a 'Buy' rating, reflecting confidence in the company's strong business momentum that is expected to drive stock price appreciation.
- Record Trading Volumes: Robinhood reported record trading volumes in June across equities, options, and prediction markets, indicating sustained engagement from retail investors that will support the company's growth trajectory and further solidify its market position.
- High Growth Outlook: Argus Research increased its price target for Robinhood from $90 to $110, forecasting that the company will remain in a high-growth phase over the next several years, particularly in attracting younger investors and expanding its financial product offerings to drive revenue growth.
- Streamlined Structure: Robinhood announced a 10% reduction in its full-time workforce, which analysts view as a strategic move to eliminate organizational layers, accelerate decision-making, and enhance product development speed, thereby improving the company's responsiveness to market changes.
See More
SEC Readies New Policy for Blockchain Stocks
- Innovation Exemption Policy: The SEC is preparing to unveil an innovation exemption policy that would allow crypto companies to offer blockchain-based stocks, potentially enabling firms to experiment with new digital asset business models without full compliance with SEC rules, which could fundamentally alter the structure of equity markets.
- Significant Market Potential: According to CoinMarketCap, the market capitalization of tokenized stocks aimed at retail investors has surged to over $6.4 billion, a dramatic increase from just a few million dollars at the end of 2024, highlighting the rapid growth potential of this emerging market.
- Major Players Ready: Prominent crypto exchanges, including Coinbase, have indicated plans to launch tokenized stocks in the U.S. once regulations permit, while companies like Robinhood and Kraken are already offering such products overseas, demonstrating market readiness and anticipation for the new policy.
- Investor Risk Warnings: While the innovation exemption could significantly benefit the crypto industry, some Wall Street firms and legal experts caution that tokenized stocks may introduce new risks for investors, particularly as these products may not offer the same rights and protections as traditional equities.
See More
Robinhood Sees Customer Growth and Service Expansion
- Significant User Growth: Robinhood's annual revenue surged from $959 million in 2020 to $4.5 billion in 2025, with its customer base expanding from 12.5 million to 27 million, demonstrating strong appeal among younger investors and solidifying its market position.
- Gold Membership Expansion: By the end of 2025, Robinhood had 4.2 million Gold subscribers, reflecting a 58% increase from 2024, which not only boosted revenue streams but also enhanced customer loyalty and engagement.
- Improved Profitability: Robinhood's adjusted EBITDA turned positive in 2023, rising by 167% in 2024 and another 76% to $2.5 billion in 2025, primarily driven by higher interest rates and increased trading fees, showcasing its resilience in a competitive fintech landscape.
- Future Growth Expectations: Analysts project that Robinhood's revenue and adjusted EBITDA will grow at CAGRs of about 15% from 2025 to 2028, and despite its enterprise value of $82 billion, the ongoing appeal to younger investors and the expansion of Gold memberships may justify its higher valuation.
See More
Wednesday ETF Trading Dynamics Analysis
- Intel Trading Performance: Intel's stock rose approximately 4.1% on Wednesday with over 49.7 million shares traded, indicating investor confidence in its future prospects, potentially driving further growth in the semiconductor market.
- Nvidia Trading Situation: Although Nvidia's stock remained flat, it saw a trading volume exceeding 49.1 million shares, suggesting ongoing market interest, which may reflect investor expectations regarding its technological innovations.
- Robinhood Market Performance: Robinhood Markets performed the best on Wednesday, with its stock rising about 11%, likely linked to increased user growth and trading activity, further solidifying its market position in retail trading platforms.
- Carvana Trading Decline: Carvana's stock fell approximately 7.8%, lagging behind other components of the iShares Disciplined Volatility Equity Active ETF, which may reflect market concerns about its financial health, impacting its future financing capabilities.
See More
Robinhood's Strategic Shift to a Broader Financial Platform
- Strategic Transformation: Robinhood is striving to move beyond a trading platform by planning to build a broader financial platform around assets, subscriptions, retirement accounts, advisory services, and AI tools, aiming for long-term growth through the integration of customers' financial lives.
- Ecosystem Development: If customers can keep more of their financial activities within Robinhood's ecosystem, this transformation could create a powerful long-term growth narrative, enhancing customer loyalty and market share.
- Execution is Crucial: However, given the stock's premium valuation, successful execution will be critical, as any strategic missteps could negatively impact the company's stock price and investor confidence.
- Market Response: As of June 5, 2026, Robinhood's stock price rose by 11.40%, indicating initial market approval of its transformation strategy, but future performance will require close monitoring.
See More
Robinhood's Shift to a Broader Financial Platform Could Drive Growth
- Strategic Transformation: Robinhood is striving to move beyond trading by building a broader financial platform centered around assets, subscriptions, retirement accounts, advisory services, and AI tools, which could create a strong long-term growth potential if successful.
- Customer Retention: Should customers integrate more of their financial lives into Robinhood's ecosystem, it would significantly enhance customer retention rates, thereby boosting the company's market competitiveness and profitability.
- Valuation Pressure: However, the stock's premium valuation means that execution is critical, as any strategic missteps could lead to significant stock price volatility and impact investor confidence.
- Market Performance Comparison: Despite Robinhood's substantial transformation potential, analysts note that it is currently not included in the “Top 10 Best Stocks” list, indicating a cautious market sentiment regarding its future performance, which may affect its short-term stock price outlook.
See More
Deutsche Bank Raises Robinhood Price Target to $105 Amid Growth Prospects
- Price Target Increase: Deutsche Bank raised Robinhood's price target from $103 to $105 while reiterating a 'Buy' rating, reflecting confidence in the company's strong business momentum that is expected to drive stock price appreciation.
- Record Trading Volumes: Robinhood reported record trading volumes in June across equities, options, and prediction markets, indicating sustained engagement from retail investors that will support the company's growth trajectory and further solidify its market position.
- High Growth Outlook: Argus Research increased its price target for Robinhood from $90 to $110, forecasting that the company will remain in a high-growth phase over the next several years, particularly in attracting younger investors and expanding its financial product offerings to drive revenue growth.
- Streamlined Structure: Robinhood announced a 10% reduction in its full-time workforce, which analysts view as a strategic move to eliminate organizational layers, accelerate decision-making, and enhance product development speed, thereby improving the company's responsiveness to market changes.
See More
SEC Readies New Policy for Blockchain Stocks
- Innovation Exemption Policy: The SEC is preparing to unveil an innovation exemption policy that would allow crypto companies to offer blockchain-based stocks, potentially enabling firms to experiment with new digital asset business models without full compliance with SEC rules, which could fundamentally alter the structure of equity markets.
- Significant Market Potential: According to CoinMarketCap, the market capitalization of tokenized stocks aimed at retail investors has surged to over $6.4 billion, a dramatic increase from just a few million dollars at the end of 2024, highlighting the rapid growth potential of this emerging market.
- Major Players Ready: Prominent crypto exchanges, including Coinbase, have indicated plans to launch tokenized stocks in the U.S. once regulations permit, while companies like Robinhood and Kraken are already offering such products overseas, demonstrating market readiness and anticipation for the new policy.
- Investor Risk Warnings: While the innovation exemption could significantly benefit the crypto industry, some Wall Street firms and legal experts caution that tokenized stocks may introduce new risks for investors, particularly as these products may not offer the same rights and protections as traditional equities.
See More
