Is Coinbase Stock a Buy? This Indicator Says All You Need to Know.
Cryptocurrency exchange Coinbase Global (NASDAQ: COIN) started off 2023 by soaring right out of the gate, largely buoyed by renewed optimism about the crypto market and the surprising strength of Bitcoin. But recently, sentiment has cooled, with Coinbase now facing potential regulatory action from the Securities and Exchange Commission (SEC).
So when Coinbase reports quarterly earnings on May 4, analysts are going to be looking long and hard at Coinbase's numbers. Theoretically, if the crypto winter is indeed over, then Coinbase should be doing much better when it comes to metrics such as monthly transacting users, assets on platform, and retail trading volume. But I think this focus on retail crypto investors might be misplaced -- here's why.
In my view, the big story at Coinbase over the past 12 months has been revenue diversification. Coinbase management has already indicated that one priority for the company is reduced dependence on trading fees. Yes, it's important to bring retail users back to the platform, and yes, it's important to boost retail trading volume. But Coinbase also realizes that retail trading revenue is very cyclical. During a crypto winter, for example, this trading revenue can freeze up.
Source Fool.com
Coinbase Global Inc. Stock
Our community is currently high on Coinbase Global Inc. with 29 Buy predictions and 17 Sell predictions.
However, we have a potential of -14.25% for Coinbase Global Inc. as the target price of 161 € is below the current price of 187.76 €.
