Coinbase stock lags behind industry, impacted by market volatility and concerns about valuation

From NASDAQ Corporation.

September 9, 2024 12:54:00 PM:

Coinbase Global Inc’s stock, COIN, has dropped 15.3% year to date, lagging behind the industry’s 7.2% increase and the S&P 500’s 13.2% increase. The performance of COIN is heavily influenced by market volatility, as seen with recent downturns in the crypto market affecting leading cryptocurrencies like Bitcoin and Ethereum.

A recent job report revealed the U.S. economy added 142,000 new jobs in August, lower than the expected 161,000. This news caused major indices like the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite to decline at the end of last week. Analysts are adjusting their estimates for COIN, with significant decreases for 2024 and 2025 earnings.

While COIN is investing in crypto utility and forging partnerships to expand global adoption, its return on equity and capital is lower than the industry average. Despite efforts to increase market share and enhance trading experience, COIN’s high valuation and weak returns raise concerns for investors, warranting a cautious approach. Invest in COIN with caution.

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Read more at Nasdaq: Coinbase Shares Lag Industry: What Investors Should Know