Coinbase Stock Forecast: Will COIN Stock Reach $100?

Coinbase Stock Forecast: The 12-month price target for Coinbase stock is $112.4

Coinbase Stock Forecast: Latest news

  • Coinbase Global is launching a digital asset lending platform targeted at major institutional investors. The company has secured $57 million in funding for this new crypto-lending initiative, as revealed in a regulatory filing.
  • Coinbase Global has provided interim results for its Tender Offer to purchase a portion of its 3.625% Senior Notes due 2031. They have increased the maximum purchase amount to $180 million and extended the offer expiration date to September 18, 2023. Payment for validly tendered Notes will be made on September 6, 2023, for those submitted after the Early Tender Time but before the Interim Expiration Time. Holders of these Notes will receive the Total Consideration of $675.00 per $1,000 principal amount, plus accrued and unpaid interest from the most recent payment date up to, but not including, the Interim Settlement Date.

Coinbase Stock Forecast: 12-Month Target

Average Price Target$112.4
JMP Securities$107
Piper Sandler$80
Canaccord Genuity$140
HC Wainwright & Co.$115

Coinbase Stock Forecast: Q2, 2023 Key Highlights

  • The company’s total assets increased significantly from $89.7 billion at the end of 2022 to $137.7 billion at the end of Q2 2023.
  • Customer crypto assets increased substantially from $75.4 billion at the end of 2022 to $124.2 billion at the end of Q2 2023, reflecting strong growth in customer holdings.
  • Net revenue for Q2 2023 was $662.5 million, compared to $802.6 million in Q2 2022, reflecting a decrease in revenue.
  • Operating expenses in Q2 2023 were $781.5 million, significantly lower than the $1.85 billion incurred in Q2 2022.
  • Coinbase incurred a net loss of $97.4 million in Q2 2023, an improvement compared to a net loss of $1.09 billion in Q2 2022.
  • Coinbase experienced a net decrease of $540.8 million in cash, cash equivalents, and restricted cash during the first half of 2023, compared to a net decrease of $4.67 billion in the same period in 2022.

Coinbase Stock Forecast: Performance so far

  • Year To Date: +112.4%
  • Last 12 Months: +14.5%
  • Since Launch: -79.7%

Coinbase Stock Forecast: Bull Case

Unlocking Economic Freedom Through Pioneering Infrastructure Upgrade: Coinbase aims to revolutionize the global financial system, bridging the gap between traditional finance and the cryptoeconomy. Its innovative and trusted products have the potential to transform the digital world, providing true economic freedom to billions worldwide.

  • Diversifying Offerings: By expanding product offerings and onramps to crypto, Coinbase empowers customers with more choices, driving revenue and volume growth.
  • Advanced Trading and Institutional Expansion: Launching advanced trading features and expanding perpetual futures products outside the US attracts sophisticated investors and institutions, tapping into latent demand in the derivatives market.
  • Innovative Financial Solutions: Coinbase Prime Financing offers integrated crypto prime finance, attracting large institutions and bolstering its position in the financial landscape.

Fostering Broader Crypto Adoption Through Enhanced Developer Tools: Coinbase supports other developers and institutions to build on its products, fueling crypto adoption and expanding reach.

  • Facilitating Crypto Adoption: Partnering with leading asset managers for ET2 applications, Coinbase brings bitcoin spot ET2s to a broader audience through highly regulated products.
  • Global Expansion and Compliance: Committed to partnering with high-bar global regulators, Coinbase expands services worldwide while ensuring compliance and trustworthiness.
  • Customer Trust and Recognition: Recognized as the most trusted crypto platform, Coinbase’s dedication to security and compliance fosters customer loyalty and attracts new users.

Coinbase Stock Forecast: Bear Case

Great exposure to retail investors-

Coinbase’s significant reliance on retail investors allowed it to benefit from the remarkable bull run in the cryptocurrency market in recent years, with Bitcoin and Ether reaching record highs. However, this strategy has turned unfavorable as increasing interest rates prompted investors to offload their crypto holdings. Consequently, Bitcoin’s price has declined, and disillusioned investors have reduced their cryptocurrency trading activities.

The close correlation between Coinbase’s stock price and crypto prices is problematic for investors. This connection means that the company’s stock performance is heavily influenced by the volatility of the cryptocurrency market, introducing additional risk and uncertainty for those considering an investment in Coinbase.

Rise of decentralized exchanges: Decentralized exchanges (DEXs) are cryptocurrency exchanges that operate without the involvement of centralized intermediaries, such as Coinbase. The popularity of DEXs has been steadily rising in recent years, driven by their lower fees and enhanced security compared to traditional exchanges. Notably, the trading volume on DEXs exceeded that of centralized exchanges, signifying a significant shift in the cryptocurrency trading landscape. As users increasingly seek greater control over their assets and transactions, DEXs have emerged as a preferred choice for many crypto enthusiasts and investors in the United States and around the world.

Conclusion: Is COIN stock a buy now?

Coinbase, the largest cryptocurrency exchange in the United States, reported its sixth consecutive quarter of losses in Q2 2023, with a $97 million deficit despite generating $708 million in revenue. Ongoing regulatory challenges and a decline in trading activity have been significant factors affecting the company’s financial performance. Nevertheless, Coinbase’s expansion into global markets and other strategic developments are gradually improving its prospects.

Investors appear to be looking beyond the recent poor financial results and instead focusing on the positive guidance provided by the company’s management for upcoming quarters. This optimistic outlook may not be sustained if the company’s financial performance fails to improve in future reports.

For investors who believe in the future of cryptocurrencies, particularly Bitcoin, but remain skeptical of their classification as an asset class, the current stock price of COIN could present an appealing investment opportunity.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions. 

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