© Reuters. Coinbase Stock: Long-Term Game for Investors
I’m bullish on Global Coinbase , Inc. (NASDAQ :), due to its attractive valuation and strong potential for long-term growth.
Coinbase is a popular cryptocurrency exchange based in San Francisco, California. It offers users the ability to buy and sell,, and. In addition to its trading platform, Coinbase also offers a number of ancillary services, including cybersecurity storage services.
Coinbase was launched in 2012 with the goal of making it easy for anyone to access Bitcoin by working as a wallet service provider. The company has raised millions of dollars in venture capital from various investors. (See COIN stock charts on TipRanks)
Coinbase is a secure and easy-to-use digital wallet that allows you to send and receive cryptocurrencies. Coinbase also provides an API, making it one of the most popular Bitcoin platforms on Earth.
What sets Coinbase apart from other competitors in the industry are its security measures, ease of use, regulatory compliance, legal status, and popularity with customers around the world.
Overall, the second quarter was strong for Coinbase. The number of retail monthly transaction (MTU) users rose to 8.8 million, a 44% increase quarter over quarter. The total number of verified users was 68 million.
Coinbase also has 9,000 institutions involved on the platform and 160,000 partners using COIN tools to interact with customers.
Net revenue was $ 2 billion, including $ 1.9 billion in transaction revenue and more than $ 100 million in subscription and service fees. Coinbase’s net profit was $ 1.6 billion, while Adjusted EBITDA was over $ 1.1 billion.
Coinbase’s EV / EBITDA forward multiple is 19.3 and its EV / forward revenue multiple is 8.5. For a company with $ 4.4 billion in cash, network and early-mover advantages, and impressive long-term growth potential in a cutting-edge industry, Coinbase certainly seems reasonably priced. .
The Taking of Wall Street
According to Wall Street analysts, COIN is shaping up to be a moderate buy, based on 11 buy ratings, three hold ratings and one sell rating over the past three months. Additionally, COIN’s average price target of $ 355.54 places the upside potential at 31.7%.
Summary and conclusions
Coinbase had a strong second quarter, showing that its profitability can continue to grow, even during a period when overall cryptocurrency prices were down.
In addition, the company continued to diversify to avoid over-reliance on Ethereum and Bitcoin, and also developed its institutional ancillary services business, strengthening its profitability and moat.
Coinbase is expected to continue to generate strong growth over the long term, although results are likely to be volatile in the short term. Its attractive valuation and bullish Wall Street sentiment combine to make it a potentially opportunistic time to buy the stock.
Disclosure: As of the date of publication, Samuel Smith had a long position on COIN.
Disclaimer: The information in this article represents the views and opinions of the author only, and not the views or opinions of TipRanks or its affiliates, and should be considered informational only. TipRanks makes no warranty as to the completeness, accuracy or reliability of this information. Nothing in this article should be construed as a recommendation or solicitation to buy or sell any securities. Nothing in the article constitutes legal, professional, investment and / or financial advice and / or takes into account the specific needs and / or requirements of an individual, and nothing in the article constitutes an full or complete statement of the questions or topic is discussed therein. TipRanks and its affiliates are not responsible for the content of the article, and any action taken on the information contained in the article is at your own risk. Linking to this article does not constitute an endorsement or recommendation of TipRanks or its affiliates. Past performance is no guarantee of future results, prices or performance.