COIN stock trading below 50-day SMA, facing challenges but potential growth

From Nasdaq

December 24, 2024 10:49 am:

Coinbase Global Inc. (COIN) is trading below its 50-day SMA, closing at $268.15 on Dec 23, 2024, down 23% from its 52-week high. With a market cap of $67.1 billion, COIN has an average volume of 13.7 million shares traded in the last three months. Shares have declined 14.7% in a month. Analyst sentiment for COIN is mixed, with estimates for 2024 and 2025 moving higher and lower, respectively. The company is expected to benefit from a pro-crypto environment but faces price performance challenges.

COIN focuses on growth through expanding its market share in the U.S. crypto markets, enhancing product offerings, and increasing international presence. The company aims to bring over 1 billion people onto the crypto rail, investing heavily in infrastructure and partnerships like Stripe. COIN’s shift to a subscription-based model has maintained positive EBITDA for six consecutive quarters. However, its return on equity and invested capital are below industry averages.

Analysts offer an average price target of $289.77 per share for COIN, suggesting a 4% upside. Despite this, shares are trading at a premium to the industry with a high forward P/E ratio. The company’s value score indicates a stretched valuation. While COIN faces operational risks and cyber threats, efforts to accelerate growth, increase market share, and innovate could drive future success. Analysts remain optimistic about COIN, reflecting potential upside.

Read more at Nasdaq: COIN Stock Slips Below 50-Day SMA: What Should You Do Now?