How High Could Coinbase Stock Fly in 2025?

Coinbase stock's muted response to good SEC news may be a buying opportunity considering Oppenheimer raised its price target on the company's shares recently to $388.

Coinbase (NASDAQ:COIN) hopes that the Securities and Exchange Commission (SEC) will dismiss all the outstanding cases against crypto firms by 2025.

According to Coinbase CEO Brian Armstrong, the regulator has about 100 active cases, which it opened during the Trump administration. Armstrong now hopes that the regulator will clear the docket.

“Hopefully, the SEC will dismiss all the bogus cases (there are about 100) by 2025, which will create a domino effect for the rest of the industry.”

Coinbase itself faced an SEC probe in 2021 over allegations that it allowed Americans to trade digital assets that were not registered with the regulator. However, both parties settled the case without any admission of wrongdoing.

Coinbase stock was down 4.5% at the last check on Feb. 21, following a modest gain of 1.4% in 2023 so far.

COIN stock is up over 1,100% since its direct listing in April 2021. However, the crypto exchange operator saw its stock lose over 80% in 2022 amid the broader market downturn and the collapse of several major crypto firms including FTX and BlockFi.

Coinbase hopes for a better 2025 as it aims to leave the crypto winter behind.

Coinbase stock closed at $249.04 on Feb. 21, valuing the company at about $40 billion. At the time of its listing, Coinbase was valued at over $90 billion.

COIN stock hit a record high of $370 in April 2021, shortly after going public. Several analysts remain bullish on the stock with Oppenheimer recently raising its price target on COIN to $388 from a prior $300.

Analyst Owen Lau is optimistic about Coinbase as it continues to dominate the crypto spot trading market.

“Coinbase now owns 67% of that market versus 64% only in November, as per his report this week. Lau also expects the company’s push to diversify its business model to help unlock further upside in its share price.”

Investors should note that Oppenheimer is not alone in remaining positive on Coinbase. The mean target on its stock currently sits at about $325, indicating potential upside of nearly 30% from current levels.

Coinbase stock has a buy rating from 22 analysts, 10 have a hold rating, and two analysts are bearish on the stock with a sell rating, as per data汇总 by Yahoo Finance.

Coinbase Technologies Inc. (NASDAQ:COIN) Q4 2023 Earnings Call

January 26, 2024

Operator

Good afternoon, everyone, and welcome to the Coinbase Q4 2023 earnings call. Joining us today are Coinbase CEO, Brian Armstrong; and CFO, Alesia Haas.

Before we begin, I'd like to remind everyone that we will be making forward-looking statements on this call. These statements are based on our current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements.

We encourage you to review our earnings press release and SEC filings for a discussion of these risks and uncertainties. We assume no obligation to update any forward-looking statements, except as required by law.

With that, I'd like to turn the call over to Brian.

Brian Armstrong

Thanks for joining us today, everyone. I'll start with a quick overview of Q4 and then Alesia will provide more detail on the financials. After that, we'll open the call up for questions.

We had a strong quarter to close out 2023, with total revenue of $2.3 billion, up 130% year-over-year. This was driven by a strong performance in our trading revenue, which increased by 140% year-over-year to $2.1 billion.

Our net income was $923 million for the quarter, compared to a net loss of $498 million in Q4 of 2022. We also generated positive adjusted net income of $1.2 billion in Q4, compared to an adjusted net loss of $344 million in the prior-year quarter.

Overall, we're pleased with our performance in Q4 and we're excited about the opportunities ahead for Coinbase in 2024.

With that, I'll turn the call over to Alesia.

Alesia Haas

Thanks, Brian. I'll now provide more detail on our financial results for the fourth quarter of 2023.

Our