Coinbase stock down 42%, growth driven by digital asset prices, high P/S ratio.

From Nasdaq

September 1, 2024 6:12:00 am:

Coinbase (NASDAQ: COIN) has seen its shares soar 391% in 2023, followed by a 19% rise this year, but still trading 42% below peak prices from 2021. The company’s growth is driven by rising digital asset prices, with revenue up 50% Q4 2023, focusing on stablecoins and blockchain rewards.

Despite the strong financial performance, Coinbase’s shares are expensive with a high P/S ratio of almost 11.9, reflecting market enthusiasm. Its valuation may deter long-term investors due to market volatility. Investors bullish on the cryptocurrency industry with high risk tolerance and long-term horizon should consider buying the stock.

The Motley Fool Stock Advisor team does not recommend Coinbase Global as one of the top 10 stocks to buy now. The service, with a history of successful stock picks, provides insights into portfolio building and updates from analysts. Investors looking for high returns should consider other opportunities identified by the analyst team.

Read more at Nasdaq: Down 42%, Is It Time to Buy the Dip on This Growth Stock?