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Are Coinbase shares worth buying now?

Coinbase shares rallied 8% last week after its results beat analyst estimates.

  • Coinbase shares opened 1.6% higher on Monday (16 August 2021)
  • The crypto exchange stock closed 2% higher last Friday, after PC chipmaker Intel disclosed it owned Coinbase shares
  • COIN spiked up 8% last week following the release of its Q2 2021 results
  • Bank of America analysts recently initiated coverage on COIN with a ‘hold’ call
  • Interested in trading Coinbase shares? Open an account with us to get started.

COIN stock price: what’s the latest?

US PC chipmaker Intel recently revealed that it owns a small stake in cryptocurrency exchange Coinbase.

Intel stated on Friday that it held 3,014 Coinbase Class A common stocks as at the end of June 2021.

This amounted to just under US$800,000 worth of holdings (or less than 0.005% of Coinbase’s current market cap), based on COIN’s last traded price of US$261.25.

Coinbase shares ended the session nearly 2% higher following the news. Shares are up 1.5% in pre-market trading on Monday.

COIN’s stocks are up 16% in the last one month, moving in tandem with the cryptocurrency market’s recovery.

Nevertheless, the counter still trails its opening price of US$381 on 14 April 2021 by over 30%.

Meanwhile, Intel shares finished flat on Friday, and is down some 3% in the last one month.

Coinbase Q2 results smash analyst estimates

Last Tuesday (10 August), the crypto platform’s shares jumped up 8% after the release of its second quarter results for 2021.

It raked in a revenue of US$2.23 billion for the quarter, beating analyst estimates of US$1.78 billion, as monthly transacting users grew 44% to 8.8 million users.

Earnings per share (EPS) of US$3.45 also came in higher against predictions of US$2.33.

As a result, net profit exploded nearly 4,900% to US$1.6 billion from the same period a year earlier.

Coinbase said trading widened beyond bitcoin into Ethereum and other assets in Q2, with BTC dropping to 24% of total trades, down from 39% in the previous quarter.

Looking ahead, the company expects its trading volume to be lower in the third quarter, reversing the second quarter’s volume gain of 38% over the first quarter.

What’s your view on Coinbase? Take a long or short position today

Go short and long with CFDs on 16,000+ shares with the world´s leading CFD provider.* Learn more about trading shares with us, or open an account to get started today.

* Based on revenue excluding FX (published half yearly financial statements, June 2020).

How do analysts currently rate COIN?

Meanwhile, analysts polled by Refinitiv expect a full-year EPS of US$7.76 per share alongside a revenue of US$6.29 billion.

In terms of stock price, 12 out of 18 analysts polled also have a rating of ‘buy’, alongside a consensus price target of US$358, which represents a potential 35% upside from COIN’s last traded price.

Bank of America (BofA) initiated coverage on the stock on 13 August with a rating of ‘neutral’ and price target of US$273.

BofA analyst Jason Kupferberg wrote that while Coinbase is aiming to ‘become the Amazon of crypto assets’, he is still waiting for more concrete signs of progress.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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