Coinbase stock analysis – Bargain hunting?


COIN is the ticker symbol for Coinbase Global, Inc., a cryptocurrency exchange company headquartered in San Francisco, California. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company went public in 2021 and is currently traded on the Nasdaq stock exchange under the ticker symbol “COIN.”

Coinbase offers a variety of services related to cryptocurrency, including:

  • Trading: Coinbase allows users to buy, sell, and trade cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin.
  • Storage: Coinbase offers a cryptocurrency wallet that allows users to store their cryptocurrencies safely and securely.
  • Education: Coinbase offers a variety of educational resources about cryptocurrency, such as articles, videos, and webinars.
  • Research: Coinbase conducts research on cryptocurrency and blockchain technology.

Coinbase’s financial performance over the past 5 years:

YearRevenue (in millions)Net income (in millions)Assets under management (in billions)Users (in millions)

Coinbase’s financial performance for the past 5 quarters:

QuarterRevenue (in millions)Net income (in millions)
Q1 20221.54-430
Q2 20221.82-1.93
Q3 20226.441.62
Q4 20223.22846
Q1 2023736.4134.4

As you can see, Coinbase’s revenue and user numbers grew rapidly in 2020 and 2021, as the cryptocurrency market boomed. However, revenue and user numbers have declined in 2022, as the cryptocurrency market has entered a bear market.

Coinbase’s net income has also been volatile, with a large loss in 2022. This is due to a number of factors, including the decline in revenue, increased expenses, and a write-down of the value of its assets.

ARK Invest

Cathie Wood’s ARK Invest has been buying Coinbase stock even after the SEC sued the crypto exchange. There are a few reasons why ARK might be doing this:

  • They believe in the long-term potential of cryptocurrency. They see Coinbase as a leading player in the crypto ecosystem and believe that the company is well-positioned to benefit from the growth of the market.
  • They believe that Coinbase is undervalued. The SEC lawsuit has weighed on Coinbase’s stock price, but ARK believes that the company is still undervalued. They point to Coinbase’s strong financial performance and its dominant market share in the US crypto exchange market.
  • They see an opportunity to buy the dip. The SEC lawsuit has created a buying opportunity for ARK. They believe that the stock is oversold and that it will rebound in the long term.

It is important to note that ARK Invest is a long-term investor. They are not concerned with short-term fluctuations in the stock market. They are focused on finding companies that they believe have the potential to grow significantly over the next few years. Coinbase is one of those companies, and that is why ARK is continuing to buy its stock.

Of course, there is no guarantee that ARK’s investment in Coinbase will be successful. The crypto market is still volatile and there is no guarantee that it will continue to grow in the long term. However, ARK Invest is a well-respected investment firm with a long track record of success. If you are considering investing in Coinbase, it is worth considering their investment thesis.

Coinbase stock Price Fator

Whether Coinbase stock has an opportunity to rise depends on a number of factors, including the overall cryptocurrency market, the company’s financial performance, and investor sentiment.

Here are some of the factors that could effect Coinbase stock price:

  • The overall cryptocurrency market.
    The cryptocurrency market has been volatile in recent months, and this has had a negative impact on Coinbase’s stock price. If the cryptocurrency market were to increase, then Coinbase stock could likely raise in value.
  • A stronger financial performance from Coinbase.
    Coinbase’s financial performance has been volatile in recent quarters. The company’s revenue and net income have declined in some quarters, but they have also rebounded in other quarters. The company’s financial performance will likely depend on the overall cryptocurrency market.
  • Investor sentiment towards cryptocurrency.
    Investor sentiment is also a factor that could affect Coinbase’s stock price. If investors become more bearish on the cryptocurrency market, then they may be more likely to sell Coinbase stock. However, if investors become more bullish on the cryptocurrency market, then they may be more likely to buy Coinbase stock.
  • Increased competition: The cryptocurrency exchange market is becoming increasingly competitive, and this could put pressure on Coinbase’s margins. If Coinbase is unable to maintain its market share, this could lead to a decline in its stock price. 
  • Negative news about Coinbase: If there were to be negative news about Coinbase, such as a security breach or a regulatory investigation, this could lead to a decline in its stock price.

Coinbase with SEC

The SEC is a federal agency that regulates the securities markets in the United States. The SEC has been investigating Coinbase for allegedly operating its crypto asset trading platform as an unregistered national securities exchange and broker-dealer.

Apart from broader market factors, COIN has also been dealing with issues with the Securities and Exchange Commission (SEC). In February 2023, the SEC issued a subpoena to COIN for details on its trading practices. The SEC has raised concerns that COIN might have permitted its employees to trade cryptocurrency on the company’s platform before allowing customers. The ongoing SEC investigation, with an uncertain outcome, has negatively impacted COIN’s stock price, as investors fear potential fines or other sanctions.

The future of cryptocurrency regulation in the United States is uncertain. However, the SEC’s investigation into Coinbase is a sign that the agency is taking a serious interest in the cryptocurrency market. This could lead to more regulation of the cryptocurrency industry in the future.

Technical analysis for coinbase

Coinbase stock was in consolidating zone with a range of $46 to $84, which has been observed from May 2022 to July 2023.

In August 2022, there was a false break, and this month, we hope to avoid another false break.

In case of a false break, the stock will continue to consolidate within the $46 to $84 range again. And hope crytocurrency market bullish.

  • The stock is currently trading above10-day 20-day  50-day and 200-day moving average
  • The Relative Strength Index (RSI) is over50
  • The MACD indicator is also bullish.
  • ALL daily signal is bullish

The Bitcoin pattern is looking good with higher highs and higher lows, just like Ethereum

Bargain hunting

Bargain hunting for Coinbase is a good strategy if you believe that the company’s stock is undervalued and that it will eventually recover. However, it is important to remember that there is no guarantee that Coinbase’s stock will recover, and you could lose money if you buy it now.

Here are some factors to consider before bargain hunting for Coinbase:

  • The company’s financial performance. Coinbase has been struggling financially in recent months, and its stock price has reflected that. You should carefully review the company’s financial statements to see if you believe that it is on the right track to recover.
  • The cryptocurrency market. The cryptocurrency market has been volatile in recent months, and Coinbase’s business is closely tied to the market. You should consider the overall outlook for the cryptocurrency market before buying Coinbase stock.
  • Your own risk tolerance. Bargain hunting is a risky strategy, and you should only do it if you are comfortable with the potential for losing money.

If you decide to bargain hunt for Coinbase, you should do your research and buy the stock at a price that you believe is fair. You should also be prepared to hold the stock for the long term, as it may take some time for the company to recover.

Here are some tips for bargain hunting for Coinbase:

  • Set a target price. Before you buy Coinbase stock, set a target price that you believe is fair. This will help you avoid overpaying for the stock.
  • Use a stop-loss order. A stop-loss order is an order to sell a stock if it falls below a certain price. This can help you protect your profits if the stock price falls.
  • Be patient. Bargain hunting can be a long-term strategy. Don’t expect to get rich quick by buying Coinbase stock.