From Nasdaq MarketSite:

The cryptocurrency market’s value surged from around $800 billion to over $1.6 trillion in 2023. Due to investor optimism, Coinbase Global soared by 391% but has since fallen 26%. CEO Brian Armstrong’s regulatory compliance strategy kept Coinbase as the fourth largest trading platform globally, with a trading volume reaching $70 billion in December.

Coinbase realized its business’s viability depends on a stable and recurring revenue stream. Sales from subscriptions and services grew by 59% year over year, representing 52% of the overall company’s revenue in the recent quarter. This focus should offer the business better revenue stream visibility and make it easier to manage.

Coinbase is a high-risk, high-reward stock. Although the company could view it as a bet on the growth of the overall market, it is essential to temper expectations due to the cryptocurrency market’s relative infancy and regulatory burden. Investors should carefully consider their risk tolerance and cryptocurrency conviction before investing in Coinbase.

The Motley Fool Stock Advisor analyst team identified the 10 best stocks to buy, and Coinbase Global was not one of them. The Stock Advisor service has more than tripled the return of S&P 500 since 2002. As of January 22, 2024, Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum.



Read more: Is Coinbase a Magnificent Crypto Stock to Buy Right Now?