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Shares of Coinbase Global Inc. COIN have lost 29.5% year to date compared with the industry’s decline of 17.5%, the sector’s drop of 5.3% and the Zacks S&P 500 composite’s decline of 10.6%.
COIN, the crypto leader, is poised to benefit from listing a broader range of crypto assets and tokenized equities, international expansion and increased volatility. Trump’s pro-crypto inclination and focus on regulatory clarity further benefit Coinbase. The company generated 83% of its total revenues in the United States, which is being envisioned as a crypto hub. Management expects Coinbase to be the platform for companies that are trying to integrate cryptocurrency.
COIN vs Industry, Sector & S&P 500 YTD
Image Source: Zacks Investment Research
COIN Trading Below 50-Day SMA
COIN has been trading below its 50-day simple moving average (SMA), signaling a short-term bearish trend. The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of an uptrend or downtrend.
Image Source: Zacks Investment Research
Shares of Robinhood Markets HOOD, a crypto-oriented company, have gained 6.9% year to date while that of Interactive Brokers Group, Inc. IBKR have lost 13.1% in the same time frame.
Robinhood has evolved from a brokerage firm mainly trading in digital assets to a more mature and diversified entity, striving to widen its market and reach. Robinhood continues to diversify its product base to acquire new clients and gain market share.
Interactive Brokers is renowned for its advanced electronic trading platforms and global market access. The company leverages proprietary systems to automate nearly every aspect of the brokerage process — from trade execution and risk management to compliance and customer onboarding —enabling it to operate with minimal human intervention and significantly lower costs than traditional brokers.
Average Target Price for COIN Suggests an Upside
Based on short-term price targets offered by 23 analysts, the Zacks average price target is $280.22 per share. The average suggests a potential 60.1% upside from Monday’s closing price.
Image Source: Zacks Investment Research
Factors Favoring COIN Stock
Coinbase, America’s largest registered crypto exchange, stands to gain from increased volatility and rising prices in the crypto asset market. The company is poised to benefit from stronger banking relationships, the acquisition of new licenses and the expansion of customized products tailored for diverse customer needs.
Focused on growth, Coinbase continues to grow its market share in both the U.S. spot and derivatives markets while broadening its product portfolio and expanding globally. Its robust liquidity enables ongoing strategic investments aimed at enhancing its service offerings and driving future growth.
The rise in stablecoin adoption is expected to further boost the company’s revenues. Coinbase has maintained positive EBITDA for eight consecutive quarters, supported by its subscription-based business model.
With a mission to bring crypto utility to a global audience, Coinbase aims to onboard over a billion users onto the crypto economy. To achieve this, it is heavily investing in core infrastructure and platforms such as Layer 2 solutions, its Base network, and stablecoins.
Coinbase is a fundamentally strong company. It ended 2024 with $9.3 billion in resources, which is defined as cash & cash equivalents and USDC, up $3.8 billion year over year. Debt has been decreasing over the past several quarters while total debt capital ratio has been improving. Also, its higher times interest earned implies that the company can comfortably service its debt.