We recently compiled a list of the 10 Worst Performing Fintech Stocks to Buy According to Analysts. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against the other fintech stocks.
Mark Palmer, Managing Director at Benchmark, joined Yahoo Finance Live on February 15, 2025, to discuss the fintech sector. He emphasized that it is currently a “stock picker’s sector.” Palmer noted that valuations in the fintech space are not connected with the growth potential of many companies.
However, he noted that not all of the fintech companies are equally positioned for success. He believes that companies heavily tied to credit, such as neobanks and online lenders, continue to be vulnerable because of growing concerns about consumer credit tightening.
READ ALSO: 10 Worst Performing Crypto Stocks to Buy Now and 10 Best 5G Stocks to Invest in According to Analysts.
Palmer noted that some fintech companies are well-positioned to help consumers during a difficult time. For instance, companies that serve as a substitute for traditional banking, particularly for lower-income individuals who face barriers at traditional banks. He believes this type of value-added service is sustainable and companies that offer such services could experience stock boosts.
In the fintech sector, careful stock selection could be crucial. Analysts and experts see opportunities for growth in companies that offer meaningful consumer solutions.
Methodology
To compile our list of the 10 worst-performing fintech stocks to buy according to analysts, we looked for fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of fintech stocks. Then we looked for the worst-performing stocks in the fintech sector and narrowed down our list to stocks that have fallen by at least 12% year-to-date as of February 28, 2025. Next, we focused on the top fintech stocks that analysts believe have the most potential for growth. Finally, we ranked the 10 worst-performing fintech stocks to buy based on their average price target upside potential according to analysts, as of February 28, 2025.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.
Coinbase Global, Inc. (NASDAQ:COIN)
Year-to-Date Performance: -16.16%
Average Price Target Upside Potential According to Analysts: 56.29%
Number of Hedge Fund Holders: 69
Coinbase Global, Inc. (NASDAQ:COIN) is an American company that provides a platform for individuals and institutions to buy, sell, transfer, trade, stake, and safekeep crypto assets. Through one of the world’s biggest cryptocurrency exchange platforms, it serves customers in more than 100 countries. Coinbase Global, Inc. (NASDAQ:COIN) is one of the worst-performing stocks to buy in the fintech industry.
On February 19, Compass Point analyst Chase White increased the price target for Coinbase Global, Inc. (NASDAQ:COIN) to $365 from $295 and reiterated a “Buy” rating. The analyst expects the company to grow thanks to its strong retail market share and growing subscription and service revenues. The firm’s analyst also pointed out near-term opportunities for Coinbase Global, Inc. (NASDAQ:COIN), including the potential of Stablecoin and Base L2, a Layer 2 blockchain solution developed by the company to enhance Ethereum’s scalability. White pointed out that the USDC market cap is approaching all-time highs and that Coinbase Global, Inc. (NASDAQ:COIN) has an edge over its competitors like Tether in on-chain transfer volumes. Furthermore, the analyst believes that financial institutions will adopt these platforms, particularly after potential legislative developments. White expects these developments to take place in 2025.
Overall, COIN ranks 2nd on our list of the worst-performing fintech stocks to buy according to analysts. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
