Argus Downgrades Coinbase (COIN) to Hold Due to Significant Valuation Issue, Trading at 39x Forward Earnings

Group 1 - Coinbase Global Inc. is a leading cryptocurrency trading platform with significant growth potential, but it faces valuation concerns as it trades at 39x expected forward earnings, higher than competitors' multiples of 24x to 27x [1][3] - The company's Q3 2025 earnings report revealed a total trading volume of $295 billion, a sequential increase of 24%, with consumer trading volume growing 37% to $59 billion, outperforming US spot markets [2] - Coinbase reported total revenue of $1.9 billion in Q3, a sequential rise of 25%, with net income of $433 million driven by transaction and subscription revenues; transaction revenue reached $1.0 billion, up 37%, and subscription and services revenue grew to $747 million, an increase of 14% [3] Group 2 - Despite the potential of Coinbase as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [4]