Should COIN Stock Be in Your Portfolio Ahead of Q3 Earnings?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2024
0mins
Should l Buy COIN?
Source: NASDAQ.COM
Earnings Expectations: Coinbase Global Inc. is anticipated to report significant growth in its third-quarter 2024 results, with revenues expected to reach $1.3 billion (up 87.2% year-over-year) and earnings estimated at 39 cents per share, reflecting a remarkable 4000% increase compared to the previous year.
Market Position and Strategy: Despite being overvalued relative to its industry, Coinbase is focusing on international expansion, enhancing trading experiences, and investing in technology to improve operational efficiency, which may support long-term growth despite challenges like increasing debt levels and weak return on capital.
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Analyst Views on COIN
Wall Street analysts forecast COIN stock price to rise
25 Analyst Rating
17 Buy
7 Hold
1 Sell
Moderate Buy
Current: 206.330
Low
230.00
Averages
361.63
High
440.00
Current: 206.330
Low
230.00
Averages
361.63
High
440.00
About COIN
Coinbase Global, Inc. is a holding company of Coinbase, Inc. and other subsidiaries. The Company provides a platform that serves as a compliant on-ramp to the onchain economy and enables users to engage in a variety of activities with their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. It offers consumers their primary financial account for the onchain economy; institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and developers a suite of products granting access to build onchain. The Company offers products and services to various customer groups: consumers, businesses, institutions, and developers. Its transaction products consist of consumer trading, prime trading, markets, base protocol and Coinbase wallet. The Company also provides market infrastructure in the form of exchanges for customers to trade spots and derivatives.
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.
Coinbase: A Simplified Approach to Cryptocurrency Investment
- Market Participation: As one of the largest cryptocurrency exchanges globally, Coinbase holds about 12% of all crypto assets in custody, projected to generate approximately $4.1 billion in transaction revenue by 2025, thereby securing a significant position in the crypto market.
- Diverse Revenue Streams: In addition to transaction revenue, Coinbase also earns around $2.8 billion from subscription and services, indicating the diversity of its business model and its resilience against market fluctuations.
- Investment Strategy Shift: Investing in Coinbase allows investors to focus on the growth of the entire crypto ecosystem rather than picking individual cryptocurrencies, simplifying the investment process and aligning more closely with traditional portfolio construction.
- Risk and Return: While Coinbase's profitability heavily relies on trading activity, which can be affected by market volatility, this approach offers investors more manageable risk control, avoiding the high volatility and uncertainty associated with individual tokens.
See More
Coinbase Partners with Bybit to Advance Asset Tokenization
- Collaboration on Tokenization: Coinbase is reportedly collaborating with Bybit on a significant push into asset tokenization, aiming to bring traditional U.S. equities on-chain, which is expected to provide new investment opportunities for global users and further drive the growth of the digital asset market.
- Technical and Compliance Support: The partnership will focus on tokenized stocks, custody solutions, and distribution infrastructure, with Bybit planning to expand into the U.S. market through a separate entity, expected to provide technology, product infrastructure, and liquidity support while ensuring compliance.
- Market Potential Unveiled: With trading volumes for tokenized stocks reaching approximately $2.87 billion in March, an over 80% increase in just 30 days, and the total number of holders surpassing 200,000, the rapid growth potential of tokenized assets is attracting more investor interest.
- Industry Impact Amplified: Analysts believe such partnerships could significantly expand global access to U.S. assets, leading to a roughly 3% rise in Coinbase's stock price to $211.68, reflecting the market's positive response to this strategic collaboration.
See More
U.S. Stocks Decline Amid Soaring Oil Prices
- Oil Price Surge Impacts Markets: The S&P 500 index fell 0.41%, the Dow Jones Industrial Average dropped 0.31%, and the Nasdaq 100 index declined 0.66% as WTI crude oil prices surged over 5%, indicating market sensitivity to rising energy costs amid doubts about peace talks regarding the Iran war.
- Geopolitical Risks Escalate: Iran's closure of the Strait of Hormuz has raised market concerns, especially following U.S. Navy actions against Iranian tankers, which could exacerbate global oil and fuel shortages, further increasing market uncertainty.
- Earnings Season Continues: So far, 81% of the 48 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to rise 12% year-over-year; however, excluding the tech sector, the growth is only 3%, indicating signs of overall economic weakness.
- Airline Stocks Under Pressure: Airline and cruise line stocks are broadly down due to rising oil prices, with Norwegian Cruise Line Holdings down over 5% and American Airlines Group down over 4%, reflecting the negative impact of high fuel costs on company profits.
See More
Oil Price Surge Leads to Market Decline
- Market Decline: The S&P 500 index fell by 0.21%, the Dow Jones Industrial Average by 0.04%, and the Nasdaq 100 by 0.24%, indicating investor concerns over rising oil prices that could impact corporate earnings and overall market confidence.
- Oil Price Surge: WTI crude oil prices increased by over 5% due to the closure of the Strait of Hormuz following the US's refusal to lift its naval blockade on Iranian vessels, which could exacerbate global oil and fuel shortages and raise operational costs for affected industries.
- Earnings Expectations: So far, 81% of the 48 S&P 500 companies that reported earnings have exceeded estimates, with Q1 earnings projected to rise by 12% year-over-year; however, excluding the tech sector, growth is only expected to be 3%, indicating signs of an overall economic slowdown.
- Airline and Chip Stocks Under Pressure: Airline stocks are down due to rising fuel costs, with Norwegian Cruise Line Holdings falling over 6%, while chipmakers like Intel are also down more than 2%, reflecting the negative impact of high oil prices across multiple sectors.
See More
Midday Market Moves: Notable Stock Fluctuations
- Stanley Black & Decker Surge: Stanley Black & Decker's stock rose over 4% after the company stated that recent changes to Section 232 tariffs would not materially impact its full-year forecast, indicating strong confidence in its financial outlook.
- Fermi Stock Plunge: Shares of energy infrastructure developer Fermi fell more than 22% following the resignation of CFO Miles Everson and the recent departure of CEO Toby Neugebauer, raising concerns about the company's leadership stability and future direction.
- Biogen's Strategic Move: Biogen's stock increased nearly 3% after agreeing to pay $850 million for exclusive rights to sell felzartamab in China, which underscores its strategic expansion in the immune-related disease treatment market.
- Fertilizer Stocks Fluctuate: Fertilizer stocks experienced volatility as CF Industries rose nearly 2% due to ongoing shipping disruptions in the Strait of Hormuz, while Dow and LyondellBasell Industries also saw gains of about 4% and 2%, respectively, reflecting market reactions to supply chain challenges.
See More
COINBASE GLOBAL INC: USDT ON ETHEREUM AND OTHER ASSETS ON THESE NETWORKS REMAIN UNCHANGED
- Coinbase Global Announcement: Coinbase has stated that USDT, Ethereum, and all other assets on their network are not affected by recent developments.
- Market Stability Assurance: The announcement aims to reassure users about the stability and security of their assets on the Coinbase platform.
See More
Coinbase: A Simplified Approach to Cryptocurrency Investment
- Market Participation: As one of the largest cryptocurrency exchanges globally, Coinbase holds about 12% of all crypto assets in custody, projected to generate approximately $4.1 billion in transaction revenue by 2025, thereby securing a significant position in the crypto market.
- Diverse Revenue Streams: In addition to transaction revenue, Coinbase also earns around $2.8 billion from subscription and services, indicating the diversity of its business model and its resilience against market fluctuations.
- Investment Strategy Shift: Investing in Coinbase allows investors to focus on the growth of the entire crypto ecosystem rather than picking individual cryptocurrencies, simplifying the investment process and aligning more closely with traditional portfolio construction.
- Risk and Return: While Coinbase's profitability heavily relies on trading activity, which can be affected by market volatility, this approach offers investors more manageable risk control, avoiding the high volatility and uncertainty associated with individual tokens.
See More
Coinbase Partners with Bybit to Advance Asset Tokenization
- Collaboration on Tokenization: Coinbase is reportedly collaborating with Bybit on a significant push into asset tokenization, aiming to bring traditional U.S. equities on-chain, which is expected to provide new investment opportunities for global users and further drive the growth of the digital asset market.
- Technical and Compliance Support: The partnership will focus on tokenized stocks, custody solutions, and distribution infrastructure, with Bybit planning to expand into the U.S. market through a separate entity, expected to provide technology, product infrastructure, and liquidity support while ensuring compliance.
- Market Potential Unveiled: With trading volumes for tokenized stocks reaching approximately $2.87 billion in March, an over 80% increase in just 30 days, and the total number of holders surpassing 200,000, the rapid growth potential of tokenized assets is attracting more investor interest.
- Industry Impact Amplified: Analysts believe such partnerships could significantly expand global access to U.S. assets, leading to a roughly 3% rise in Coinbase's stock price to $211.68, reflecting the market's positive response to this strategic collaboration.
See More
U.S. Stocks Decline Amid Soaring Oil Prices
- Oil Price Surge Impacts Markets: The S&P 500 index fell 0.41%, the Dow Jones Industrial Average dropped 0.31%, and the Nasdaq 100 index declined 0.66% as WTI crude oil prices surged over 5%, indicating market sensitivity to rising energy costs amid doubts about peace talks regarding the Iran war.
- Geopolitical Risks Escalate: Iran's closure of the Strait of Hormuz has raised market concerns, especially following U.S. Navy actions against Iranian tankers, which could exacerbate global oil and fuel shortages, further increasing market uncertainty.
- Earnings Season Continues: So far, 81% of the 48 S&P 500 companies that reported earnings have beaten estimates, with Q1 earnings projected to rise 12% year-over-year; however, excluding the tech sector, the growth is only 3%, indicating signs of overall economic weakness.
- Airline Stocks Under Pressure: Airline and cruise line stocks are broadly down due to rising oil prices, with Norwegian Cruise Line Holdings down over 5% and American Airlines Group down over 4%, reflecting the negative impact of high fuel costs on company profits.
See More
Oil Price Surge Leads to Market Decline
- Market Decline: The S&P 500 index fell by 0.21%, the Dow Jones Industrial Average by 0.04%, and the Nasdaq 100 by 0.24%, indicating investor concerns over rising oil prices that could impact corporate earnings and overall market confidence.
- Oil Price Surge: WTI crude oil prices increased by over 5% due to the closure of the Strait of Hormuz following the US's refusal to lift its naval blockade on Iranian vessels, which could exacerbate global oil and fuel shortages and raise operational costs for affected industries.
- Earnings Expectations: So far, 81% of the 48 S&P 500 companies that reported earnings have exceeded estimates, with Q1 earnings projected to rise by 12% year-over-year; however, excluding the tech sector, growth is only expected to be 3%, indicating signs of an overall economic slowdown.
- Airline and Chip Stocks Under Pressure: Airline stocks are down due to rising fuel costs, with Norwegian Cruise Line Holdings falling over 6%, while chipmakers like Intel are also down more than 2%, reflecting the negative impact of high oil prices across multiple sectors.
See More
Midday Market Moves: Notable Stock Fluctuations
- Stanley Black & Decker Surge: Stanley Black & Decker's stock rose over 4% after the company stated that recent changes to Section 232 tariffs would not materially impact its full-year forecast, indicating strong confidence in its financial outlook.
- Fermi Stock Plunge: Shares of energy infrastructure developer Fermi fell more than 22% following the resignation of CFO Miles Everson and the recent departure of CEO Toby Neugebauer, raising concerns about the company's leadership stability and future direction.
- Biogen's Strategic Move: Biogen's stock increased nearly 3% after agreeing to pay $850 million for exclusive rights to sell felzartamab in China, which underscores its strategic expansion in the immune-related disease treatment market.
- Fertilizer Stocks Fluctuate: Fertilizer stocks experienced volatility as CF Industries rose nearly 2% due to ongoing shipping disruptions in the Strait of Hormuz, while Dow and LyondellBasell Industries also saw gains of about 4% and 2%, respectively, reflecting market reactions to supply chain challenges.
See More
COINBASE GLOBAL INC: USDT ON ETHEREUM AND OTHER ASSETS ON THESE NETWORKS REMAIN UNCHANGED
- Coinbase Global Announcement: Coinbase has stated that USDT, Ethereum, and all other assets on their network are not affected by recent developments.
- Market Stability Assurance: The announcement aims to reassure users about the stability and security of their assets on the Coinbase platform.
See More
