Coinbase Wants to Become Your New Choice for Stock Trading. Will Its Bold Bet Pay Off for COIN Stock?

Core Viewpoint - The stock market is witnessing an increase in trading options for investors, particularly with the expansion of platforms like Coinbase that allow trading of both cryptocurrencies and U.S.-based stocks using stablecoins [1][3]. Group 1: Coinbase's Market Position - Coinbase Global is the largest U.S. cryptocurrency exchange, offering over 275 digital assets and 340 trading pairs on its platform [4]. - The company has more than $516 billion in assets on its platform, with a quarterly trading volume of $295 billion [4]. - Coinbase has a market capitalization of $64.5 billion, but its stock has declined by 2.5% this year, contrasting with the S&P 500's increase of over 15% [5]. Group 2: Financial Performance - Coinbase reported a strong third-quarter earnings performance, with net income reaching $432.6 million, a significant increase from $75.5 million a year ago [7]. - Earnings per share were $1.50, compared to $0.28 per share a year ago, surpassing analysts' expectations of $1.10 per share [7]. Group 3: Valuation Metrics - The price-to-earnings (P/E) ratio for Coinbase is currently at 20.7, down from over 60 earlier this year, indicating a significant decrease in valuation [6]. - The price-to-sales (P/S) ratio stands at 7.6, which is lower than its three-year median of 9.5, suggesting that the stock may be undervalued compared to its historical performance [6].