Coinbase has a median target price of $450, which is a premium of 54 percent over the current prices. Its highest target price of $650 is 121 percent above current prices, while the lowest target price of $250 is a potential downside of 14.7 percent. Going by analysts' target prices, COIN stock looks like a good buying opportunity.
Full Answer
Will Coinbase offer a 4% yield on its stablecoin?
The Securities and Exchange Commission blocking a plan for Coinbase to offer a 4% yield on its dollar-pegged stablecoin nixed a plan that could've drawn income investors to the platform's front door. Coinbase isn't moving on buzzword-heavy news.
Is Coinbase stock a buy at $225?
So is the stock a buy at current levels of around $225 per share? Coinbase currently trades at just about 18x projected 2021 earnings, which is a reasonable valuation for a futuristic stock with solid earnings potential.
Is Coinbase stock undervalued at $265?
So, although a decline in business is looking likely for Coinbase in the next couple of quarters, we still think the stock remains slightly undervalued trading at levels of about $265 per share, or just under 12x our projected 2021 revenues for the company.
Why is Coinbase’s stock price dropping?
Firstly, Coinbase went public via a direct listing, which enables insiders to sell shares right away without the usual post IPO lockup period that limits the initial supply of shares. This could be putting some pressure on Coinbase’s stock price.
What is the future of Coinbase stock?
Coinbase said its outlook for 2022 remains largely unchanged despite the bumpy first quarter. The stock, which is down 71% so far this year, fell 13% on Tuesday before the release of the company's quarterly results. Other crypto stocks have seen big drops.
Why is Coinbase stock low?
Coinbase Global Inc. swung to a loss in its most recent quarter and posted lower-than-expected revenue as it lost 2.2 million crypto traders from its platform, citing the impacts of lower volatility and prices for crypto assets.
Is it good to buy Coinbase stock now?
And the stock, which has been extremely volatile, tracks what happens with broader crypto prices. But if you believe in the future of digital assets and you adopt a truly long-term mindset, then Coinbase, trading at a price-to-earnings ratio of only 4, looks like a smart buy right now.
What is the target price for Coinbase?
The average price target on Coinbase is $170.09, Bloomberg data show.
Is Coinbase going to collapse?
“We have no risk of bankruptcy, however we included a new risk factor based on an SEC requirement called SAB 121, which is a newly required disclosure for public companies that hold crypto assets for third parties.
Is Coinbase undervalued?
Coinbase's stock is overvalued And the company recorded net earnings of $8.89 a share in 2021, up from $5.68 a year ago.
Is Coinbase a safe investment?
Yes, storing assets in a custodial wallet comes with some risk, but Coinbase has a fairly strong balance sheet and it has historically been quite profitable. Additionally, the company has invested heavily in cybersecurity, and it has never lost customer funds because of a breach.
Is Coinbase good for long term investing?
Coinbase is a good service to use for long-term investing as long as you have more than a basic understanding of cryptocurrency. At an advanced level, you will be able to use Coinbase's Pro Account to maximize your investment in the long term with the extra features that the service offers.
How safe is Coinbase?
At Coinbase, we're committed to security by using industry best practices and storing up to 97% of bitcoins in encrypted, geographically separated, offline storage. To further protect our customers, all of the bitcoins stored in online computers are insured.
How much is ethereum worth in 2021?
Conclusion: Is Ethereum a Good Investment and How Much Will ETH Be Worth?YearPotential HighPotential Low2021$14,000$1,4402022$10,000$1,4402023$7,200$2,6002024 – 2025$41,000$4,500
How does Coinbase make money?
Coinbase generates revenue in a variety of ways, the most obvious being through transaction fees. Coinbase also earns money from maker-taker fees on Coinbase Pro, interchange fees, interest on cash and personal loans and the sale of software tools.
Is crypto bullish?
JPMorgan, the leading financial service provider, has recently announced that it is bullish on the prospects of cryptocurrencies, especially Bitcoin and thinks that it is undervalued.
Why COIN stock has been falling
Coming back to COIN stock, the stock has been falling because of the sell-off in growth names. Also, Coinbase went public at very aggressive valuations, which left little on the table for investors who bought the stock in the direct listing.
COIN's stock forecast is bullish
Meanwhile, analysts have a bullish forecast for COIN stock. Among the 10 analysts covering the stock, seven have a buy or equivalent rating, while the remaining three rate the company as a hold. So far, none of the analysts have given it a sell rating.
Coinbase target price
Coinbase has a median target price of $450, which is a premium of 54 percent over the current prices. Its highest target price of $650 is 121 percent above current prices, while the lowest target price of $250 is a potential downside of 14.7 percent. Going by analysts' target prices, COIN stock looks like a good buying opportunity.
Will Coinbase stock fall more or go up?
Currently, Coinbase stock might have hit a near-term bottom. Markets’ attention might shift to the company’s quarterly earnings, which are scheduled for this week. The earnings report would offer insights into the company’s growth momentum given the euphoria towards digital currencies.
Coinbase stock valuation
COIN stock is richly valued. Based on the 2022 consensus revenue estimates of $4.82 billion, it's valued at around 12x of the expected 2022 sales. The multiples are way above what other “mainstream” exchanges like Nasdaq trade at.
Should you buy or sell Coin stock now?
As for COIN stock, it's somewhat surprising that the stock has fallen despite the crypto mania in the last few weeks. A high valuation and fears of higher competition and falling margins are catching up with COIN stock.
The leading cryptocurrency exchange has fallen below its IPO reference price. It doesn't have to stay that way
Since 1995, Rick has been writing for The Motley Fool, where he's a consumer and tech stocks specialist. Yes, that's a long time with more than 20,000 bylines over those 24 years. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception.
Key Points
Coinbase shares fell in the third quarter, even as Bitcoin and other cryptocurrencies moved higher.
A token of lost love
Coinbase is huge. It has 68 million verified users. There was a whopping $462 billion in crypto trading through its exchange in its latest quarter. Divide that into the $180 billion in assets on its platform and you can see the power of trigger-finger speculators buying in and out of hot and cold crypto denominations.
Analysts have a bullish prediction for COIN stock
While COIN stock has been falling, most Wall Street analysts are bullish on the stock. Among the 17 analysts covering the stock, 14 have rated it as a buy or some equivalent. Four analysts have a hold rating, while one analyst has a sell rating.
Cathie Wood is bullish on Coinbase stock
Cathie Wood is among the fund managers that are bullish on Coinbase stock. She added to her positions when COIN stock plummeted and sold some Tesla shares to make way for the purchase. Wood is known to back disruptive companies and was among the early backers of Tesla and Square.
COIN stock is popular on Reddit group WallStreetBets
COIN stock is among the top 25 discussion topics on Reddit group WallStreetBets. Reddit traders have been instrumental in pumping up several stocks, especially GameStop and AMC Entertainment. Both of the stocks trade way above what Wall Street analysts think they are worth.
Will COIN stock go up?
COIN stock is a proxy play on cryptocurrencies. If you believe in cryptocurrencies and want to play the theme, Coinbase stock might fit in the bill. Coinbase’s forecast depends on how the cryptocurrency market evolves over the next few years.
