Coinbase(US:COIN) ZACKS·2026-01-19 18:46Core Insights - Coinbase Global (COIN) is significantly impacted by Bitcoin price fluctuations, with its stock performance suffering due to recent declines in Bitcoin prices [1][2] - The company is diversifying its revenue streams by expanding subscriptions and services, with a focus on stablecoin income and blockchain rewards [3][7] Financial Performance - Transaction fees account for approximately 63% of Coinbase's total revenues in 2024, with Bitcoin-related trading contributing about 30% of that figure [1] - COIN shares have lost 18.3% over the past year, underperforming the industry [6] Market Dynamics - The performance of COIN is closely tied to broader crypto market cycles, which induce volatility and suppress trading activity, directly affecting core revenue streams [1][4] - Peers like Robinhood and Interactive Brokers also experience similar impacts from crypto asset prices, with Robinhood's performance mirroring market cycles and Interactive Brokers benefiting from higher crypto prices attracting institutional clients [4][5] Revenue Estimates - The Zacks Consensus Estimate for COIN's fourth-quarter 2025 and first-quarter 2026 EPS has been revised downward, with full-year estimates for 2025 and 2026 also reflecting this trend [10] - Despite a projected year-over-year increase in revenues for 2025 and 2026, the EPS estimate for 2026 suggests a decline [11] Valuation - COIN trades at a price-to-earnings ratio of 42.13, significantly above the industry average of 22.48, indicating an expensive valuation [8]