Coinbase (NASDAQ: COIN) saw a pre-market rally on Jan. 5 after Goldman Sachs analysts expressed confidence in the company, citing a year of underperformance as an attractive entry point for investors. Despite a drop of 8.04% in the past year, year-to-date figures show a gain of 4.59%.

Coinbase, founded by Brian Armstrong and Fred Ehrsam in 2012, operates the largest crypto exchange in the U.S. and joined the S&P 500 index in May 2025. Analysts have shown increased optimism for the stock, with Clear Street analyst Owen Lau naming Coinbase as a top fintech idea for 2026 alongside Nasdaq and S&P Global.

Veteran investor Cathie Wood continues to acquire Coinbase shares through ARK Invest. Goldman analyst James Yaro expects Coinbase’s valuation to strengthen as it transitions from cyclical to structural growth, highlighting strong business fundamentals and potential for growth in core offerings and crypto infrastructure services.

Yaro noted Coinbase’s subscription and services segment has expanded significantly, with expectations of continued robust growth as the crypto ecosystem evolves beyond trading. He believes Coinbase’s exposure to crypto infrastructure businesses will help dampen earnings volatility over time, projecting a 13% annual growth from 2025–2027.

Read more at Yahoo Finance: Popular crypto stock surges after Goldman Sachs revamps price target