Key TakeawaysCoinbase shares are off to a strong start this year as the cryptocurrency exchange continues to benefit from optimism that the incoming Trump administration and a crypto-friendly Congress will support policies that benefit the asset class.After setting a three-year high in early December, the stock has retraced about half of its post-election rally, with the price sitting roughly midway between the 200- and 50-day moving averages.Investors should watch key support levels on the Coinbase chart a ...

Just a couple of trading days are left to end 2024. Wall Street has been on a historic rally, buoyed by the artificial intelligence (AI) craze and rate-cut optimism. A surge in technology stocks and the rise in the share of "Magnificent Seven" have also added to the strength. Trump’s win in the presidential election also bolstered optimism.The tech-heavy Nasdaq Composite Index led the charge, rising 31.4%. The S&P 500 and the Dow Jones are up 25.2% and 14.1%, respectively and are on track for the best year ...

Today’s market offers investors the unique opportunity to participate in an era of extraordinary technological innovation. From the rapid expansion of AI to the evolution of digital currencies and the infrastructure powering these industries, there is no shortage of exciting opportunities to capitalize on these transformative trends.While technology investing often comes with significant volatility, for those seeking rapid capital growth, these sectors provide some of the most promising avenues.For investor ...

Company Overview - Coinbase was founded in June 2012 with the initial purpose of facilitating Bitcoin transactions but has since expanded its services [1] - The company's market cap reached $70 billion as of December 19 [1] - Coinbase shares have surged 697% over the past two years, recovering from a disappointing 2022 [1] Business Model and Revenue Streams - Coinbase's brokerage and exchange segment accounted for 51% of net revenue in Q3 2023, down from 88% three years ago [3] - The company has diversified its revenue streams to include stablecoin revenue, staking rewards, and custody solutions, aiming to reduce reliance on volatile trading volume [4] - Coinbase has made strategic investments in crypto startups and technologies, with a portfolio valued at $359 million as of September 30 [5] Industry Exposure and Growth Potential - Coinbase is positioned as a bet on the growth of the entire cryptocurrency market due to its broad exposure to the industry [3] - The company benefits from rising crypto prices, which drive increased trading activity and revenue growth [7] - Coinbase's innovation efforts, such as the Base Layer-2 solution and USDC stablecoin, demonstrate its ability to expand into new areas [7] Long-Term Outlook - Coinbase's success depends on the long-term growth of the cryptocurrency industry and its ability to capture market opportunities [6] - The company has unparalleled exposure to the entire crypto asset class, which could benefit from the increasing value and number of blockchain projects [6] - However, the long-term potential of the crypto industry remains uncertain, with regulatory and technical challenges still to be addressed [9] Market Sentiment and Challenges - The cryptocurrency market is currently experiencing a resurgence in investor interest due to rising asset prices and a risk-on mentality [8] - Despite this, the majority of crypto tokens may ultimately fail to provide real-world utility or solve significant problems [8] - Coinbase's ability to reach a trillion-dollar valuation is highly uncertain, given the industry's challenges and the need for cryptocurrencies to outperform the current financial system [10]

Core Insights - COIN, America's largest registered crypto exchange, has a market capitalization of $67.1 billion and an average trading volume of 13.7 million shares over the last three months [1] Group 1: Market Performance - COIN's stock has experienced a decline of 14.7% over the past month, which is worse than the industry's decrease of 1.4%, the sector's decline of 5.3%, and the Zacks S&P 500 composite's decline of 0.3% [17] - The stock closed at $268.15 as of December 23, 2024, down 23% from its 52-week high of $349.75, indicating a short-term bearish trend [15] Group 2: Financial Estimates - The Zacks Consensus Estimate for 2024 earnings implies a significant year-over-year increase of 1356.8%, while the estimate for 2025 suggests a decrease of 40% [5] - The Zacks Consensus Estimate for 2024 and 2025 has moved 3.3% and 19.1% higher, respectively, in the past 30 days [19] Group 3: Strategic Initiatives - COIN is focusing on strengthening banking connections, acquiring new licenses, and expanding its product range to meet unique customer preferences [6] - The company aims to bring 1 billion or more people into the crypto ecosystem and is investing heavily in infrastructure and foundational platforms like Layer 2s, Base, and Stablecoins [7] - COIN's shift to a subscription-based model has allowed it to maintain positive EBITDA for the last six consecutive quarters, supporting strategic investments in growth initiatives [22] Group 4: Valuation and Analyst Sentiment - The average price target from 22 analysts is $289.77 per share, suggesting a potential upside of 4% from the current closing price [25] - COIN's 12-month forward price-to-earnings ratio of 81.75X is significantly higher than the industry average of 25.27X, indicating a premium valuation [30] - Despite the premium valuation, analysts remain optimistic about COIN's growth potential and market share expansion [32]

The broader U.S. equity markets have witnessed significant volatility over the past few trading days as concerns regarding the Federal Reserve’s interest rate cuts took center stage amid stubborn inflation. However, the November reading of the personal consumption expenditures price index, which increased 2.4% year over year, offered some solace as it was a tad less than broad-based expectations. This helped defuse some of the bearishness and helped stocks recover from a volatile past week that witnessed th ...

Core Viewpoint - The article presents a metaphorical "Christmas tree" of stocks that are expected to perform well in 2025, highlighting various companies and their potential for growth based on market conditions and political changes. Group 1: Stock Highlights - Gulfport Energy (GPOR) is focused on natural gas and oil exploration in North America, holding a Zacks Rank 2 and a VGM Score of B, making it a strong candidate for investment [2] - Palantir Technologies (PLTR) has gained approximately 360% this year, with an estimated earnings growth rate of 24% for the next year, and holds a Zacks Rank 2 and a Growth Score of A [5] - Coinbase Inc (COIN), the largest cryptocurrency exchange in the U.S., has risen about 54% and has a Zacks Rank 1, indicating strong performance potential driven by optimism in the crypto market [8] - PACS Group Inc. (PACS) is expected to outperform in the New Year with an estimated earnings growth rate of 82.3% for 2025, despite a recent decline of 15.6%, and holds a Zacks Rank 2 and a VGM Score of B [10] - NVIDIA Corporation (NVDA) has seen a rise of over 180% this year, driven by the AI boom, and holds a Zacks Rank 2 and a Growth Score of A [11] - Wells Fargo & Company (WFC) is a major financial services provider with a Zacks Rank 2 and a Value Score of B, positioned to benefit from deregulation and lower corporate taxes [13] - Tesla (TSLA) has experienced a nearly 72% increase in the past three months, reclaiming a trillion-dollar market cap, with analysts bullish on its future performance following Trump's election victory [14] Group 2: Market Conditions and Political Influence - The second Trump administration is anticipated to boost stocks through policies that may enhance the economy and inflation, including deregulation and tax cuts [4] - Banks are expected to benefit from Trump's deregulation and lower corporate tax policies, marking a potential shift towards lighter financial regulation [7] - The S&P 500 index has risen more than 24% in 2024, driven by the AI boom and lower interest rates, with Trump's election providing additional market support [9]

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Coinbase Global, Inc. (NASDAQ:COIN) 51st Nasdaq London Investor Conference Transcript December 11, 2024 8:30 AM ET Company Participants Alesia Haas - Chief Financial Officer Conference Call Participants Michael Infante - Morgan Stanley Michael Infante Okay, everyone. Thank you. Thank you for joining us. We’re going to get started. I’m Michael Infante. I’m an equity analyst covering fintech here at Morgan Stanley. I’m very pleased to be joined by Alesia Haas of Coinbase, their Chief Financial Officer. Before ...

Coinbase Global, Inc. (NASDAQ:COIN) 51st Nasdaq London Investor Conference Transcript December 11, 2024 8:30 AM ET Company Participants Alesia Haas - Chief Financial Officer Conference Call Participants Michael Infante - Morgan Stanley Michael Infante Okay, everyone. Thank you. Thank you for joining us. We’re going to get started. I’m Michael Infante. I’m an equity analyst covering fintech here at Morgan Stanley. I’m very pleased to be joined by Alesia Haas of Coinbase, their Chief Financial Officer. Before ...