Coinbase Global (COIN) AI Stock Analysis

• Market Cap: $64.93B
• Dividend Yield: N/A
• Average Volume (3M): 12.49M
• Price to Earnings (P/E): 47.0
• Beta (1Y): 2.75
• Revenue Growth: 48.30%
• EPS Growth: 5.09%
• Country: US
• Employees: 3,772
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.24
• Shares Outstanding: 211,407,410
• 10 Day Avg. Volume: 7,553,470
• 30 Day Avg. Volume: 12,488,159
• PEG Ratio: 0.02
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.77
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.23
• Enterprise Value/Ebitda: 0.86
• 1Y Price Target: $263.00
• Price Target Upside: 4.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23

• Rating: 74 Outperform
• Price Target: $298.00 ▲(18.88%Upside)

Coinbase Global demonstrates strong financial performance and strategic growth initiatives, particularly in the derivatives market and international expansion. The high valuation and potential market volatility present risks but are balanced by positive earnings call insights and robust cash flow management. Technical indicators suggest mixed momentum, warranting cautious optimism.

Positive Factors

Growth Potential

Analyst expects Coinbase's earnings per share to grow at a compound annual growth rate of around 38%, significantly outpacing market consensus for future estimates.

Index Inclusion

Coinbase Global (COIN) reached a major milestone with its addition to the S&P 500, which initially caused COIN shares to jump by 24%.

Market Position

Coinbase is the largest U.S crypto exchange with a dominant 66% U.S market share, making it the leading platform to benefit from the potential expansion of the crypto market.

Negative Factors

Profitability Concerns

The outlook for the second quarter disappoints due to a structural shift in volume mix from retail to institutions, which earns thinner margins, thereby dragging near-term profitability.

Retail Volume Decline

Retail transaction volume has declined from its peak, and the decline in retail trading frequency is expected to be structural due to lower volatility and the existence of ETFs as low-cost convenient alternatives.

Security Breach

Coinbase Global disclosed a significant cybersecurity breach and confirmed an ongoing SEC investigation regarding its past user metrics.

Coinbase Global Business Overview & Revenue Model

Company Description

Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. It offers the primary financial account in the cryptoeconomy for consumers; a marketplace with a pool of liquidity for transacting in crypto assets for institutions; and technology and services that enable developers to build crypto-based applications and securely accept crypto assets as payment. The company was founded in 2012 and is based in Wilmington, Delaware.

How the Company Makes Money

Coinbase primarily generates revenue through transaction fees charged on its trading platform. These fees are applied when users buy, sell, or trade cryptocurrencies on the exchange. The company offers different fee structures for retail and institutional clients, with professional traders often enjoying lower rates due to higher trading volumes. Additionally, Coinbase earns money from subscription services, such as Coinbase Pro and Coinbase One, which offer advanced trading features and reduced fees. The company also gains revenue from interest on customer custodial funds and by providing a range of institutional services, including custody and staking options. Partnerships with financial institutions and strategic investments in blockchain technology companies further contribute to Coinbase's earnings.

Coinbase Global Financial Statement Overview

Summary

Coinbase Global is on a solid financial footing, with robust revenue growth and efficient cash flow management. While profitability metrics exhibit some volatility, the company's resilience and strategic financial management are evident. Continued focus on maintaining stable leverage and improving profit margins could further enhance financial health.

Income Statement

Coinbase Global has demonstrated strong revenue growth in recent years, with a notable recovery from the revenue dip in 2022. The gross profit margin is robust, indicating effective cost management. However, there is volatility in net profit margin, primarily due to fluctuations in net income, which poses a potential risk.

Balance Sheet

The debt-to-equity ratio remains manageable, suggesting a balanced approach to leveraging. The return on equity has improved significantly, reflecting enhanced profitability. The equity ratio indicates a strong capital structure, although the high liabilities in 2023 imply potential leverage risks.

Cash Flow

Cash flow from operations is consistently strong, with impressive free cash flow generation, enhancing financial flexibility. The operating cash flow to net income ratio is stable, indicating efficient cash management practices. Overall, cash flow metrics show a positive trajectory, supporting growth initiatives.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.81B	6.56B	3.11B	3.19B	7.84B	1.28B
	Gross Profit
5.63B	5.65B	2.69B	2.56B	6.57B	1.14B
	EBIT
2.25B	2.31B	-161.66M	-2.67B	3.08B	408.95M
	EBITDA
1.81B	3.12B	25.21M	-2.82B	3.14B	464.93M
	Net Income Common Stockholders
1.47B	2.58B	94.87M	-2.62B	3.62B	322.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.15B	9.55B	5.53B	5.29B	7.22B	1.11B
	Total Assets
21.73B	22.54B	14.75B	89.72B	21.27B	5.86B
	Total Debt
4.32B	4.32B	2.99B	3.49B	3.51B	379.08M
	Net Debt
-3.73B	-4.22B	-2.14B	-935.28M	-3.61B	-682.77M
	Total Liabilities
11.26B	12.27B	8.47B	84.27B	14.89B	4.89B
	Stockholders Equity
10.47B	10.28B	6.28B	5.45B	6.38B	963.58M
Cash Flow		Free Cash Flow
1.96B	2.56B	922.95M	-1.59B	3.96B	2.99B
	Operating Cash Flow
1.96B	2.56B	922.95M	-1.59B	4.04B	3.00B
	Investing Cash Flow
-388.36M	-282.38M	5.39M	-663.82M	-1.12B	50.82M
	Financing Cash Flow
7.40M	2.83B	-811.33M	-5.84B	9.98B	18.80M

Coinbase Global Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 250.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COIN, the sentiment is Positive. The current price of 250.68 is below the 20-day moving average (MA) of 256.46, above the 50-day MA of 216.10, and above the 200-day MA of 230.37, indicating a neutral trend. The MACD of 8.83 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 54.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COIN.

Coinbase Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COIN	74 Outperform	$64.93B	46.98	15.83%	―	48.30%	5.09%
GRND	73 Outperform	$4.50B	―	-63.52%	―	30.08%	-196.62%
GRAB	67 Neutral	$19.07B	835.71	0.38%	―	17.24%	―
SPT	66 Neutral	$1.31B	―	-36.95%	―	17.79%	16.49%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
RIOT	62 Neutral	$3.73B	24.36	-14.71%	―	59.99%	-283.24%
MSTR	51 Neutral	$106.95B	―	-29.68%	―	-6.19%	-3736.55%

Coinbase Global Corporate Events

Coinbase Acquires Deribit in Major Cryptocurrency Deal

On May 8, 2025, Coinbase Global, Inc. entered into a Share Purchase Agreement to acquire all outstanding shares of Deribit, a Netherlands-based company, for $700 million in cash and nearly 11 million shares of Coinbase’s Class A common stock. This acquisition, pending regulatory approvals and other conditions, aims to strengthen Coinbase’s market position and expand its offerings in the cryptocurrency space, with significant implications for stakeholders, including a lock-up arrangement for certain Deribit shareholders and a potential $100 million termination fee if regulatory approvals are not obtained by November 8, 2025.