From Nasdaq:

Based on the information from Nasdaq’s market activity, Coinbase shares have seen extreme volatility, dropping 86% in 2022 followed by a 391% spike in 2023. With rising interest rates, the company experienced a surge in value, reporting impressive Q4 2023 results that excited the market, sending shares up even further in 2024.

Despite the stock’s significant comeback, Coinbase remains 46% off its all-time high as of February 16th. This downward trend might be a good opportunity for investors considering the company’s potential.

In 2022, the crypto market experienced a sharp decline due to rising interest rates and macroeconomic uncertainty, with a 50% increase in Q4 2023 consumer trading volume helming Coinbase’s 164% growth in shares.

The 2023 crypto boom had a positive impact on Coinbase’s net revenue, which reached $905 million, representing a 50% year-over-year increase due to its popular platform and strong demand from investors.

Despite significant cost-cutting efforts, the company reported unexpected net income of $273 million in Q4 2023, a substantial reversal from the previous year’s $557 million net loss largely due to a one-time tax benefit.

Given its reliance on volatile crypto assets, Coinbase’s financial performance is tied to market excitement, potentially leading to ongoing boom-and-bust periods for investors.

The company is focused on developing subscription services like custodial fees and staking revenue. Interest income accounted for 57% of the $375.4 million generated last quarter, but the potential for a decrease in interest rates should be noted.

Investors with a long-term view of the cryptocurrency market would be most suitable for adding Coinbase to their portfolios, given that the sector’s economy has the potential for significant growth.

As of February 12, 2024, Neil Patel and his clients have no position in Coinbase shares, while The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more: Down 46% From Its All-Time High, Is It Time to Buy Coinbase Stock?