Key points:
- Coinbase shares rise over 700% since last year
- Goldman Sachs and KBW upgrade Coinbase stock rating
- Coinbase anticipates $1 billion revenue, up 29.83%
Coinbase shares have experienced a significant increase of over 700% since the start of the previous year, rebounding from a 90% sell-off. This growth has been recognized by Goldman Sachs and the KBW team, both of which have recently upgraded their rating on the stock. However, Coinbase remains a volatile stock, with a Relative Strength Index (RSI) reading of nearly 80, suggesting that the stock is heavily overbought. The price-to-earnings (PE) ratio of more than 700 also raises valuation concerns.
Coinbase and other crypto-related companies have seen their shares rise in line with Bitcoin’s rally. This recent rally has been influenced by the Bitcoin halving event, the launch of BTC ETFs, and increased political and geopolitical uncertainty. Consequently, Coinbase’s daily volumes have reached levels not seen since 2021.
In terms of financial performance, Coinbase Global, Inc. is expected to report an EPS of $0.34, a 126.67% increase from the corresponding quarter of the previous year. The company is also anticipating revenue of $1 billion, a 29.83% increase from the same quarter last year.