Coinbase global Inc. is a trading platform for cryptocurrencies with no physical headquarters. The American company is branded as Coinbase and trades on Nasdaq as COIN. Coinbase is one of the first cryptocurrency companies to offer an IPO and is also the largest regulated crypto company in the US.
Coinbase operates in more than 100 countries around the world and supports Bitcoin and a host of altcoins available in the crypto ecosystem. The number of Coinbase employees as of 2021 was 3,730, all working remotely, and the company had an operating income of $3.08 billion in the same year. For a full overview of the exchange, read our Coinbase review where you will learn more about this crypto mastodont.
At its initial public offering in April 2021, Coinbase had a total valuation of $85.5 billion, easily qualifying it for S&P 500 at the stock exchange. According to CNBC, Coinbase’s trading volume as of April 1 2022, was 24,016. Coinbase Global’s dividend yield as of March 31, 2022, is 0.00%, which is a historical dividend payout since 1971.
Coinbase EPS or Earnings Per Share in the 4th quarter of the year 2021 was $3.32 against the projected target of $1.85, which has been hailed by industry experts and analysts.
The latest key stats of Coinbase stock chart as of February 24, 2022, according to the wall street journal, are as follows:
- Open – 189.86
- Previous close – 189.86
- Average volume – 4,883,025
- Revenue TTM – 7.839B
- Market Cap – 48.965B
- P/E ratio TTM – 14.66
- Debt To Equity – 53.04%
- Gross Margin – 83.83%
- Net margin – 46.23%
- Dividend – NA
Coinbase also has a couple of investment services for crypto enthusiasts. Among them is Coinbase ventures, which is an investment firm for blockchain startups and early-stage crypto companies. So far, Coinbase ventures have raised up to $15 million through FUND I, a single venture fund.
Coinbase’s viral advertisement at the 2022 super bowl brought major traffic to the company’s website, with more than 20 million visitors in under a minute, causing it to crash. After the advertisement aired, Coinbase app downloads on the iOS platform also jumped from 186 to the no 2 spot.
How To Buy Coinbase Stock?
If you are interested in buying Coinbase stock, below are the steps to follow:
Step 1 – Finding the right stock broker
The first step to buying Coinbase stock is to find the right stockbroker that trades on Nasdaq and open an account on the platform.
Opening an account with a Nasdaq stockbroker might differ slightly from one to the other. But if you follow the broker’s instructions to the letter, it should be easy.
While choosing a stockbroker to buy Coinbase stock, look for those with:
- Low account fees: Account fees with the top stockbrokers are as low as 0.1%, so don’t forget to shop around first before settling for a stockbroker.
- Margin trading: Top stockbrokers offer you the choice between margin and cash account. A margin account or trading option will allow you to buy more shares even if you run out of funds/cash balance in your account.
- No commission: No commission feature will be most beneficial if you are operating with a small account. Today, most of the top brokers do not charge any commission at all so choose carefully.
- Fractional share trading: Brokers with this trading option give you more investing capacity within a certain risk level so you can invest in the next company when one is sold short.
- Real-time market data: A stockbroker that allows you to view real-time stock charts and market data will make your trading experience more user-friendly and less complicated.
Step 2– Transferring funds.
Before you can start transferring your funds, the broker will need to verify your identity, so it can take a day or two complete the process. But after your account is set up, you can decide how much you want to invest and transfer your digital funds to your account.
Step 3 – Choosing which stock to buy
You can either buy COIN shares directly or ETF (Exchange-traded Fund)
Step 4 – Setting up your preferred order type
For buying Coinbase stock, there are several order types with the stockbrokers – Market order, limit order, stop limit and stop loss. So you can choose your preferred order type and complete the set-up with the trader and submit it.
Step 5 – Buying and mentoring your Coinbase stock.
The process of buying the Coinbase stock will differ from one stock broker to another. But in general, you access your account with the trader and enter your Coinbase stock ticker. Next, you enter the order type and limit price in the required fields. You will also need to enter the number of shares you want to buy and choose the buy option to complete the transaction.
After you buy your Coinbase stock, you need to monitor your share. Your Coinbase price to earnings ratio will now be subject to regulations in the news and market changes.
Where To Buy Coinbase Stock?
You can buy Coinbase stock from Nasdaq since it has been listed since the day of its debut. Coinbase’s stock name is COIN, so you can buy the stocks with a third-party brokerage listed on Nasdaq.
Some of the top stockbrokers for shorting Coinbase stocks are Robinhood, Webull, BinanceUS, and Interactive brokers. These stockbrokers have 0% or minimal commission and account minimum, so you can trade, view, and monitor your Coinbase stocks with ease.
How Much Will The Coinbase Stock Be?
Coinbase and other cryptocurrencies are currently undergoing a period of high volatility, making it hard to forecast how valuable they can be even though COIN had one of the largest debut listings in the US. In addition, Coinbase’s stock NASDAQ is currently down by almost a third, prompting some analysts to think that Coinbase’s initial pricing was overvalued.
Nevertheless, Coinbase has a good initial valuation, so investment returns for long-term investors can be very positive.
When was the Coinbase IPO?
Coinbase stock release date or initial public offering was on April 14, 2021, at Nasdaq. The crypto exchange platform closed at $328.28 per share, which put its value right after Bitcoin and Ethereum.
Coinbase listed its stocks directly on the market and did not follow the traditional IPO process. Therefore, existing shareholders and Coinbase employees were able to sell their shares at the market-based price right after its debut. In addition, Coinbase’s IPO strategy of a direct listing, like some of the top companies such as Spotify and Roblox, encouraged the standardization of avoiding the traditional IPO listing.
Before Coinbase IPO, the company had a reference price of $250 per share, bringing the company’s estimated value to $47 billion.
Why is Coinbase stock dropping?
Coinbase shares dropped because of the hike in interest rates from the US Federal Reserve. Traditionally, a higher rate of interest has resulted in a lower price for existing stocks, and Coinbase stocks are no exception. Unfortunately, US Federal Reserve has said that its interest rates will keep rising in order to combat inflation.
Feb 2022 witnessed Coinbase stock price dropping by as much as 6%, making even seasoned crypto investors quite nervous. Some investors think that Coinbase is dropping prices due to the rising conflict between Ukraine and Russia.
Indeed, the Ukraine-Russia war has affected the cryptocurrency economy greatly. As a response to suspicion of illegal activity, Coinbase has currently blocked more than 25,000 of its crypto address of users from Russia.
So along with the hike of Coinbase interest rate from the Federal department, the market turmoil has also led to the price drop of Coinbase stocks.
But to be fair, Coinbase is not the only crypto that is losing stock price ratings. Two of the biggest and high-earning names in the crypto sphere, Bitcoin and Ethereum, have also been greatly affected around the same time the Coinbase earnings took a dive. BTC fell by 0.89%, while ETH fell by 1.23%.
Therefore, the instance of Coinbase stock dropping is not isolated to the company or the platform since all the other crypto, and the entire ecosystem is affected.
How high can Coinbase stock go?
Coinbase stock price prediction is tricky since the cryptocurrency ecosystem is a bit volatile at the moment. However, Coinbase has held its ground fairly well, even with the recent drop in its pricing.
Even before depreciation, taxes, and amortization, Coinbase has been trading 12 times, trailing with 12 months of adjusted earnings. Therefore, Coinbase stock has a lot of potential for growth, making it a great choice for long-term crypto investors.
In addition, Coinbase’s Q4 reports on February 24 reveal that the crypto trading platform’s performance exceeded expectations. Coinbase revenue underwent a 327% increase from the previous year, while earnings year over year was 300%. COIN is also trading at 55% of its initial public offerings.
Besides, Coinbase is constantly developing a robust ecosystem by supporting the development of Web3, non-fungible token, and decentralized apps, so do not be surprised if Coinbase stocks undergo exponential growth and bring a great return on your investment in a year or two.
A leading analyst team at Motley Fool also rates Coinbase stock among the top 10 best stocks. Since the platform is a revered platform for finance, stock screeners, and rating stocks’ credibility, the future looks bright for Coinbase investors and individuals looking to capitalize on the success of the exchange – for instance marketers participating in the Coinbase referral program.