Should You Invest in Coinbase Stock Despite Disappointing Earnings

Bank of America Maintains "Underperform" Rating on Coinbase

Coinbase Q4 2022 results showed a net loss of $557 million, down from a profit of $840 million during the year-ago quarter, with revenues declining by 75% YoY to $629 million due to the decline in trading activity in cryptocurrencies like bitcoin. Coinbase’s (NSD:COIN) monthly transacting users also declined from 11.4 million to 8.3 million YoY, and its market share dropped from 5.9% to 4.1% from November 2022 to February 2023. Despite this, there has been a recent uptick in the crypto market, with bitcoin prices up by 45% YoY. Coinbase also saw an increase in transaction revenue for January at $120 million, compared to $322 million for Q4 2022. The stock has risen by 75% YoY but is still down by almost 80% from its all-time highs in 2021. However, Coinbase has shown potential for extraordinary profits during good times, and the bankruptcy of smaller players could benefit established and well-capitalized players. At $85 per share, we value Coinbase stock significantly higher than the current market price of $61 per share.

Coinbase Global Inc’s Stock Analysis:

Coinbase Global Inc has an average analyst target price of USD 64.22 over the next 12 months, according to forecasts from 32 analysts. The average analyst ratings for Coinbase Global Inc is Buy, indicating positive sentiment towards the stock. However, Stock Target Advisor’s stock analysis is Bearish, with 2 positive signals and 6 negative signals. As of the last closing, Coinbase Global Inc’s stock price was USD 58.44, representing a -10.37% change over the past week. Over the past month, the stock price has risen by +10.22%, but over the last year, it has fallen by -66.95%.

Company Overview:

Coinbase Global, Inc. is a financial technology company that operates a platform for buying, selling, and storing digital currencies such as Bitcoin, Ethereum, and Litecoin. The company offers various services, including a cryptocurrency wallet, a trading platform, and merchant tools that enable businesses to accept cryptocurrencies as payment. With a focus on providing a secure and reliable platform for its users, Coinbase has become one of the largest and most trusted cryptocurrency exchanges in the world. The company was founded in 2012 and is headquartered in Wilmington, Delaware, with operations in the United States and internationally.

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