tl;dr
Coinbase (NASDAQ:COIN) has been upgraded to Market Perform from Underperform at Raymond James, as the current bitcoin (BTC-USD) rally on the back of strong exchange-traded product inflows has driven massive outperformance in the company's shares. Raymond James maintains a negative long-term bias on ...
Coinbase (NASDAQ:COIN) has been upgraded to Market Perform from Underperform at Raymond James, as the current bitcoin (BTC-USD) rally on the back of strong exchange-traded product inflows has driven massive outperformance in the company's shares. Raymond James maintains a negative long-term bias on the cryptocurrency exchange but believes that Underperform is no longer an appropriate near-term rating.
Analyst Patrick O'Shaughnessy expressed substantial doubts about Coinbase's long-term earnings prospects, citing its commoditized client offering, cryptos' tenuous long-term outlook, and meaningful regulatory risk. He also cautioned that the longer the crypto rally persists, the greater the odds of a competitor attacking Coinbase with a disruptive pricing strategy.
Seeking Alpha's Quant rating on the stock is Hold, in line with SA Analysts' and sell-side ratings. Despite a surge of close to 380% over the past year, Coinbase shares rose 2.3% before the bell on Tuesday amid a broader rally in crypto-linked stocks.
More about Coinbase Global Inc
Based on the financial data provided, Coinbase Global Inc. is a company in the finance services sector with a market cap of $61.57 billion and a stock price of $706.03. The company has a relatively low beta of 0.36, indicating lower volatility compared to the overall market. With a price-to-earnings ratio of 12.41 and a return on equity of 3.27%, the stock appears to be attractively valued. However, the stock has a high short interest ratio of 0.494, suggesting potential bearish sentiment in the market. As a provider of financial infrastructure for the crypto economy, Coinbase's performance may be influenced by the volatility and regulatory uncertainties associated with the cryptocurrency market. It's important to consider these factors when evaluating the stock's potential future performance.
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