Coinbase Stock Slides 18.5% in 3 Months: Time to Buy the Dip?

Core Insights - Coinbase Global Inc. (COIN) shares have decreased by 18.5% over the past three months, underperforming its industry which saw a decline of 10.3% [1][9] - The company is well-positioned to capitalize on increased market volatility and rising crypto asset prices as the U.S. aims to become a global crypto hub [2] - Coinbase is expected to have a strong performance in 2026, building on the momentum from an active 2025 while executing its long-term strategic roadmap [2] Company Performance - Coinbase is expanding its market share in U.S. spot and derivatives trading while broadening its product portfolio and global footprint [8] - The company is actively adding new cryptocurrencies and tokenized equities, reflecting its commitment to a pro-crypto ecosystem [8] - Despite strong growth plans, COIN trades at a premium and faces declining earnings estimates [9] Strategic Initiatives - Coinbase has pursued strategies to bridge traditional finance and crypto, including discussions with major U.S. banks on stablecoin pilot programs [10] - The company completed nine acquisitions in 2025 to expand capabilities and accelerate product development [11] - International expansion is a priority, with Coinbase returning to India's market after nearly three years, supported by its investment in CoinDCX [11] Financial Outlook - The Zacks Consensus Estimate for 2025 and 2026 earnings has decreased by 6.3% and 1% respectively in the past 30 days [14] - Revenue estimates for 2025 and 2026 imply year-over-year increases of 11.7% and 13.2% respectively, but earnings for 2026 are projected to decrease by 27.1% [15] - COIN shares are trading at a forward price-to-earnings ratio of 45.29, significantly higher than the industry average of 24.21 [16] Valuation and Market Position - The Value Score of F indicates that COIN shares are not cheap and suggest a stretched valuation [18] - Although COIN is more expensive compared to Robinhood (HOOD), it is cheaper than Interactive Brokers (IBKR) [18] - The company’s focus on driving crypto market growth and enhancing trading experiences is expected to support faster growth [19]