Cryptocurrency exchange Coinbase stock (NASDAQ
While it’s hard to time an entry into Coinbase stock amid the market volatility, some factors are worth considering for potential investors. Things are likely to remain tricky for non-productive assets such as crypto, as the Fed continues its monetary tightening. However, cryptocurrencies such as bitcoin have shown resilience in the past, bouncing back stronger after big sell-offs. We could see this again as the crypto cycle turns (typically two to four years, according to Coinbase). As a company, Coinbase has shown potential for extraordinary profits during good times. Over 2021, the company’s total profits stood at $3.6 billion on revenues of about $7.4 billion. This could make the stock worth a look during the current downturn.
Moreover, through the current crypto bear market, several smaller platforms such as Celsius and Voyager Digital have filed for bankruptcy, while suspending account withdrawals. These developments might help more established and well-capitalized players such as Coinbase eventually win over more retail investors, as things get better. There could be some upside for Coinbase in the near-term as well. Ether
We value Coinbase stock at $120 per share, which is significantly ahead of the current market price of $71 per share. See our analysis on Coinbase Valuation: Expensive or Cheap? for more details on Coinbase’s valuation. Also, check out our analysis on Coinbase Revenues: How Does COIN Make Money? for details on the company’s key revenue streams and how they have been trending.
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