From Nasdaq:

Coinbase’s stock stumbled since it went public, now trading at about $130. Due to cryptocurrency declines and rising interest rates. It previously soared to as high as $429.54 and dropped to an all-time high of $357.39. Is it still possible for long-term investors to benefit?

Coinbase has to grow at a 26% compound annual growth rate (CAGR) over the next 20 years in order to reach $1 million in revenue. However, the cryptocurrency market is notoriously volatile and unpredictable, making it unclear if Coinbase can maintain its current growth trajectory.

Currently, analysts expect Coinbase’s revenue to rise 11% in 2024 and 5% in 2025. But due to its exposure to a market full of potential financial risks, Coinbase stock has underperformed cryptocurrencies like Bitcoin and Ether over the past three years.

Coinbase’s stock has been impacted by the speculative nature of the cryptocurrency market. The company may not grow rapidly enough to deliver long-term millionaire-making returns. Underperformance against the broader crypto market and rapidly rising expenses further compound the challenges.

Due to its exposure to high operating costs and unpredictable risks, Coinbase stock may struggle to deliver monumental gains in the future. Also, the recent approval of Bitcoin ETFs may provide a more accessible method for investors to tap into the cryptocurrency market.

In conclusion, investing directly in cryptocurrencies like Bitcoin and Ether is likely more beneficial than investing in the complex business of Coinbase. The future profitability of non-major cryptocurrencies is uncertain, and high operating costs may make it difficult for Coinbase to generate significant returns.



Read more: Could Coinbase Global Stock Help You Become a Millionaire?