Cryptocurrency exchange Coinbase Stock (NASDAQ
While it is difficult to plan an entry into Coinbase shares amid market volatility, there are some factors worth considering for potential investors. Things are expected to remain tricky for non-performing assets such as crypto as the Fed continues monetary tightening. However, cryptocurrencies such as bitcoin have shown resilience in the past, bouncing back stronger from big selloffs. We might see it again as the crypto cycle turns (usually two to four years, according to Coinbase). As a business, Coinbase has shown tremendous earnings potential during good times. In 2021, the company’s total profits were $3.6 billion on revenue of approximately $7.4 billion. This could make the title worth a look during the current downturn.
Additionally, 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 could help more established and better capitalized players such as Coinbase win over more retail investors as things improve. There could also be benefits for Coinbase in the short term. Ether
We value Coinbase stock at $120 per share, which is significantly higher than the current market price of $71 per share. See our analysis on Coinbase Valuation: Expensive or cheap? for more details on Coinbase’s valuation. See also our analysis on Coinbase revenue: How does COIN make money? for more details on the company’s main sources of income and their evolution.
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