- Decide if you want to buy Coinbase shares in the short-term or invest in the long-term
- Compare share dealing and trading fees in our comparison tables
- Choose which broker is right for you and open an account
Buying one NASDAQ:COIN share costs $133.76. However, as well as the $133.76 cost of buying each share you will also have to pay any relevant tax, commission when you buy and sell shares, custody fees for holding your shares on your account and foreign exchange fees for converting GBP into USD. You also have to consider the difference between the bid price (the price at which you sell shares) and the offer price (the price at which you buy shares). These fees vary depending on what sort of account you open, and with what broker. You can compare the different costs associated with the different types of trading and investing accounts in our comparison tables below.
- Thinking about using Coinbase? Read our expert Coinbase review first.
It’s also important to remember that share prices can move quickly, for example, the current NASDAQ:COIN share price is $133.76 which is a change of 9.04 or 7.25% from the last closing price of 133.76 with 13,693,520 shares traded giving NASDAQ:COIN a market capitalisation of $32,001,476,765. The most recent daily high has been 134.33 and daily low 125.88. The NASDAQ:COIN share price 52 week high has been 134.33 and the 52 week low 31.55. Based on the most recent NASDAQ:COIN share price opening of 133.76, the current NASDAQ:COIN EPS (earnings per share) are -3.22 and the PE (price earnings ratio) is n/a.
Pricing data automatically updates every 15 minutes
Is Coinbase (NASDAQ:COIN) a good investment in the long term?
Few assets evoke such polar opinions; either you love it or hate it. And the asset we are referring to is cryptocurrency.
The entire asset class (worth about $1 trillion now) came into existence only 14 years ago. Satoshi Nakamoto published the white paper on Bitcoin – and changed the financial world. Until now, nobody knows for certain who Satoshi is/are. Nonetheless, it did not prevent traders, entrepreneurs and financiers from trading and investing in the original cryptocurrency.
Speculative frenzy drives the cryptocurrency market and coin prices. Bitcoin’s astronomical return has been 30,000x in 10 years! – which has enticed capital from all corners of the globe. Bitcoin also spawned hundreds of other smaller crypto-coins, which too, led to hyper-active volumes.
Coinbase was well positioned to capture this new trading trend and made a huge amount of money capturing the flow. Brian Armstrong, the CEO of Coinbase, and Fred Ehrsam developed the firm into a crypto brokerage giant that stores, manages and executes Bitcoin transactions for retail and institutional clients. From its inception in 2012 to 2020, Coinbase ‘generated over $3.4 billion in total revenue‘ (see its 2021 IPO prospectus – full of good information) In other words, the broking company is a market leader in a growth industry.
However, investors who bought on the first day of Coinbase’s public trading (Apr 21, 2021) are suffering from a deep drawdown. From its IPO price of $250, the Coinbase share price shot above $400 swiftly and by the end of its first trading session, Coinbase was valued at $85 billion. Currently, the stock trades at around $50-60, with a market capitalisation of just $12.5 billion – a loss of 85%.
Yes, the stock had a fantastic run prior to the pandemic in 2020. But that’s history. The past 18 months saw plenty of equity being wiped away from the company. It’s a long road to recovery.
In 2022, the entire crypto industry slipped into a significant downswing. This is because of the sharp increase in interest rates, the war in Ukraine and the complete withdrawal of quantitative easing (QE). All these factors have overturned the bullish speculative mood.
Due to a collapse in Bitcoin and other cryptocurrency prices, many well-known firms have gone bust, including Three Arrow Capital (3AC), Luna/Terra, crypto lender Celsius, and mining Compute North. Overleveraged crypto players are gradually being eliminated from the sector like dominoes. Fear is high as investors wonder who is next on the ‘death list’.
However, remember that the crypto market is cyclical. And Bitcoin has a habit of surprising investors. Therefore, I am not so sure I will write off the entire crypto market just yet.
To answer the question if Coinbase share are worth buying, ask yourself these questions, do you:
- have a long investment time frame (3-7 years)?
- have some capital which you can afford to lose?
- have a high tolerance for massive price swings?
If the answer is yes to all, then you may wish to take a look at buying Coinbase shares.
Judging from Coinbase’s share price it seems the firm is overvalued. Technically, COIN’s stock chart is acting poorly and I would not be surprised if the stock breaks down beneath its summer floor at $45.
Why are investors bearish? That’s because the firm is losing at lot of money. At quick peek at Coinbase’s quarter results tell you the severity of its strained finances.
In the third quarter, Coinbase lost $544 million. The previous quarter? $1 billion. And the previous quarter before that – another $500+ million. In just 9 months, the firm lost $2 billions altogether already. If Bitcoin trading activities continue to remain low, more losses are to be expected.
The arrival of a ‘crypto winter’ has decimated Coinbase’s share price. This is because Coinbase’s revenue depends critically on the popularity of cryptocurrencies. A booming market like 2021 lifted revenue as traders buy and sell actively.
- Since January 2022, crypto prices have been sinking like a stone. Bitcoin plunged from $69k to $20k.
- This reduces liquidity in the market – in turn, reduces transactions and volume.
- Coinbase’s business depend on market flow, which is drying up significantly
As Coinbase pointed out in its latest quarter results, “Q3 transaction revenue was $366 million, down 44% compared to Q2“. Hence, the market is de-rating Coinbase’s share.
Coinbase was listed with much fanfare back in 2021. Many analysts are following the company – but half of them are now placing ‘Hold’ or ‘Underperform’ ratings on the company (see below).
This is a signal that the Street is not optimistic about the company. Even Cathy Wood of Ark Investments sold some of her holdings in Coinbase in the summer. Therefore, until crypto prices improve significantly from here, the general sentiment on Coinbase stock will remain negative.
Source: Financial Times
- Further reading: See what we think in our review of Coinbase
The answers to our frequently asked questions by people interested in buying Coinbase shares about Coinbase’s share price are automatically updated every 15 minutes.
The current Coinbase share price is $133.76
Coinbase’s share price has moved $9.04 or 7.25% today.
Yesterday, Coinbase’s share price closed at $133.76
There were 13,693,520 shares traded in Coinbase yesterday.
What is Coinbase’s market capitalisation (market cap)?
Coinbase has market cap of $32,001,476,765
Coinbase’s most recent daily high has been $134.33
Coinbase’s most recent daily low has been $125.88
The Coinbase share price 52 week high has been $134.33
The Coinbase share price 52 week high has been $31.55
Coinbase’s current earnings per share (EPS) is -3.22
What is Coinbase’s price-earnings ratio (PE)?
Coinbase’s current price earnings ratio (PE) is n/a