Shares of Coinbase Global COIN are trading near their 52-week high of $382.00 and closed at $373.85 on July 9. The crypto leader is currently trading above the 50-day and 200-day simple moving averages.
Year to date, COIN has seen its shares rise steadily, growing as much as 50.5%, outperforming the industry’s rise of 4.3%, the sector’s increase of 8.6% and the Zacks S&P 500 composite’s gain of 5.9%.
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Robinhood Markets HOOD, a crypto-oriented company, has gained 153.7% over the past three months, while Interactive Brokers Group, Inc. IBKR has gained 31% in the same time frame.
Coinbase, the largest registered crypto exchange in the United States, is strategically positioned to benefit from growing market volatility and rising crypto asset values. As the United States emerges as a key player in the global crypto landscape, the company’s leadership is focused on making Coinbase the preferred platform for enterprises adopting cryptocurrency.
What’s Driving COIN?
Coinbase is actively expanding its presence in both the U.S. spot and derivatives markets, while enhancing its product offerings and extending its global reach. The company is steadily increasing the variety of assets available on its platform, including a broader selection of cryptocurrencies and tokenized equities.
As part of its strategic growth initiatives, Coinbase has agreed to acquire Deribit, the world’s top crypto-options exchange, which handled over $30 billion in open interest and $1 trillion in trading volume outside the United States in 2024. Upon completion, the acquisition is expected to make Coinbase the leading global crypto derivatives platform by open interest. Coinbase is also advancing its decentralized finance (DeFi) initiatives on its Layer 2 solution, Base, by launching assets such as cbXRP and cbDOGE.
Global expansion remains a cornerstone of Coinbase’s strategy. The company is entering high-potential markets like Argentina and India, while also securing regulatory approvals in major financial centers, including Spain, France, Singapore and Bermuda. These efforts are designed to lessen Coinbase’s reliance on the U.S. market, diversify revenue streams, and strengthen engagement with both retail and institutional clients. By focusing on regions with inefficient or underserved financial infrastructures, Coinbase aims to unlock new opportunities and cement its leadership in the evolving crypto economy.
In alignment with its global vision, Coinbase is also working to make USDC the premier dollar-backed stablecoin worldwide. Supported by robust liquidity, the company continues to invest in strategic initiatives that enhance its platform, expand its capabilities, and drive sustained long-term growth.
To boost crypto utility, Coinbase invests in infrastructure and foundational platforms like Base — Layer 2 solution. Given COIN’s efforts to enhance Ethereum's scalability and reduce transaction fees, $COIN launched a $5 million bug bounty program that enhances security on its Base Layer 2 and on-chain network. Earlier, COIN bought the Iron Fish team to add privacy features to its layer 2 network Base.
Coinbase demonstrates strong fundamentals, solid cash balance, improving leverage ratio and a higher times interest earned ratio.
Estimate Revision Trend
The Zacks Consensus Estimate for 2025 and 2026 earnings has moved 22.8% and 3.5% north, respectively, in the last 30 days.
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The consensus estimates for 2025 and 2026 earnings of Robinhood Markets and Interactive Brokers Group have also witnessed northward movement in the past 30 days.
Coinbase Shares Are Expensive
The stock is overvalued compared to its industry. It is currently trading at a price-to-earnings multiple of 63.7, higher than the industry average of 22. Its Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.
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Meanwhile, COIN is cheaper than Robinhood Markets but expensive when compared with Interactive Brokers Group.
How to Play COIN Stock
Volatility in cryptocurrency prices poses a significant risk to Coinbase’s financial stability. A decline in the value of Bitcoin, Ethereum, and other digital assets could weigh on profitability, reduce the worth of its crypto holdings, and constrain future cash flows, potentially impacting liquidity and the company’s ability to fulfill its financial obligations.
Despite these headwinds, Coinbase remains focused on growth. It is strengthening its presence in the crypto ecosystem by expanding its product lineup, capturing a greater share of spot trading activity across both retail and institutional markets, and continually innovating to enhance the trading experience.
Given its elevated valuation, a cautious investment approach may be warranted for this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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