1. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders as of Q2: 45
Analyst Upside as of October 10, 2024: 53.59%
Coinbase Global, Inc. (NASDAQ:COIN) is a promising stock, given its focus on future technologies and innovations in the cryptocurrency space. Operating as a financial services company, it provides crucial infrastructure and technology for the crypto economy. It also provides technology and services that enable developers to build crypto products and securely accept crypto assets as payment.
Coinbase Global, Inc. (NASDAQ:COIN)’s core business is closely tied to the overall condition of the cryptocurrency market. Therefore, when the market is experiencing widespread growth, Coinbase is likely to follow suit and generate significant value.
Over the years, Coinbase Global, Inc. (NASDAQ:COIN) has generated a significant chunk of its revenues from transaction fees. Consequently, the company’s earnings take a hit whenever there is a downturn in the sector. Fast forward, Coinbase has diversified its revenue base by reducing its reliance on transaction fees.
A key element in this shift has been Coinbase’s growth in its Subscription and Services division, which includes stablecoin interest, fees for holding assets, and rewards for holding digital assets. Although transaction revenue was down 27% in Q2 from last quarter, subscription and services revenue was found to be at an all-time high, growing 17% quarter-over-quarter to $599 million.
The future prospects for Coinbase Global, Inc. (NASDAQ:COIN) are rooted in the growing acceptance of digital currencies by both individual and institutional investors. In the past, individual investors have been the main force behind the movement of cryptocurrency and Coinbase.
Yet, as the cryptocurrency market evolves, institutional investors are beginning to participate, bringing along substantial financial resources. Coinbase’s approach to serving these two groups is clear in its continuous work to improve individual investors’ experience and establish itself as a reliable ally for institutions.
Consequently, based on 15 Wall Street analysts, Coinbase Global, Inc. (NASDAQ:COIN) is a strong Buy with an average price target of $258.17, implying a 53.59% change from the last price of $168.09. As of Q2 2024, the stock was held by 45 hedge funds, while Citadel Investment Group was the most dominant shareholder.
While we acknowledge the potential of Coinbase Global, Inc. (NASDAQ:COIN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than COIN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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