Coinbase Global (NASDAQ: COIN) has once again captured the spotlight as investors debate whether now is the right time to buy into the leading US cryptocurrency exchange.
After a turbulent start to 2025, marked by a nearly 50% plunge in the first quarter and a broad sell-off in crypto markets, COIN has rebounded over 30% from its April lows and is trading near $195 as it heads into its first-quarter earnings report.
Mixed Analyst Sentiment Ahead of Earnings
The investment case for Coinbase remains highly polarized. On one hand, several analysts have downgraded the stock ahead of earnings, citing concerns about weaker trading volumes and the potential for a shortfall in Q1 results.
Monness, Crespi, Hardt recently cut their rating from Buy to Neutral, removed their price target, and warned of possible downward revisions if earnings disappoint. Compass Point also downgraded COIN to Sell, citing competitive pressures and near-term revenue uncertainty.
However, bullish voices remain. Benchmark and Rosenblatt Securities both reaffirmed Buy ratings, with price targets of $252 and $260, respectively, pointing to Coinbase’s strong fundamentals, expanding product suite, and potential for a resurgence in crypto activity later this year. Citi also maintains a Buy rating, albeit with a slightly reduced target of $270, reflecting ongoing adjustments to their financial models.
Volatility, Valuation, and the Crypto Cycle
Coinbase’s fortunes are closely tied to the broader crypto market. While the company posted impressive 115% revenue growth recently and maintains a P/E ratio around 20, its earnings remain highly sensitive to Bitcoin and Ethereum price swings, as well as overall trading volumes.
The upcoming earnings report is expected to show revenue of about $2.1 billion, up 27% year-over-year, but earnings per share could drop 57% compared to last year, highlighting the volatility inherent in the business.
Despite this, COIN is trading at a discount to many traditional exchanges on both P/E and EV/EBITDA multiples, and some long-term bulls argue that the current price offers an attractive entry point for investors willing to ride out crypto’s ups and downs.
Ultra-bullish forecasts suggest the stock could see dramatic gains if the crypto market rebounds, with some projecting price targets above $500 in the next year or two.
Strategic Moves and Growth Catalysts
Coinbase continues to invest in new products and partnerships, such as its expanded collaboration with PayPal to promote stablecoin adoption and fee-free trading for PYUSD.
The company’s institutional business is also a bright spot, with a growing roster of hedge funds and asset managers using its custody and trading services.
Regulatory clarity remains a key risk, but Coinbase’s proactive approach and established US licenses provide a competitive moat compared to many global rivals.
Should You Buy Coinbase Stock Now?
For investors with a high risk tolerance and a long-term outlook, current levels could represent an appealing entry point, especially if the crypto market stabilizes and trading volumes recover. However, caution is warranted in the short term as earnings volatility, regulatory headwinds, and competition from decentralized exchanges remain significant risks.
In summary, whether it’s finally time to invest in Coinbase stock depends on your view of the crypto cycle, your appetite for volatility, and your confidence in Coinbase’s ability to innovate and adapt. While the stock’s recent rebound and discounted valuation are promising, prudent investors may want to wait for clearer signals from the upcoming earnings report before making a major move.