Coinbase’s stock has rebounded today, posting one of the largest gains among crypto stocks despite the crypto exchange missing its projected Q4 earnings. The COIN stock rally also comes as experts predict further upside for the stock, with a potential rally of up to 212% on the cards.
COIN Stock Rallies Over 17% As Berstein Analysts Predict More Upside
TradingView data shows that Coinbase’s stock is up over 17% today, currently trading at around $165. The stock’s price surge comes amid a prediction from Bernstein analysts that it could rally up to 212%, potentially reaching a new all-time high (ATH) above $500.
These analysts, led by Gautum Chhugani, acknowledged that COIN stock remains exposed to the crypto market’s downtrend but expect a recovery later this year or by 2027, which would support a rally. Meanwhile, they noted that Coinbase’s balance sheet remains strong amid current market volatility, which is why they believe the stock is a hold despite its recent downtrend. For context, the stock is still down over 27% year-to-date (YTD).
CoinGape had reported earlier in the day that the COIN stock crashed around 8% after Coinbase posted a weaker-than-expected Q4 earnings report yesterday, while Monness analysts, along with other Wall Street firms such as JPMorgan, downgraded their targets for the stock. Experts have suggested that the weak earnings report may have already been priced in, which is why the stock has rebounded this much today.
Trading platform Vest noted that traders have flipped pre-earnings downside into a rally, with Coinbase’s stablecoin revenue growth offsetting transaction declines, which has led to debates over a potential short squeeze for the stock versus probability concerns.
Meanwhile, market expert Scott Melker noted that COIN stock had swept the April lows on the weekly chart amid “negative” earnings that people later realized were positive. He added that Coinbase will likely be among the ten most powerful companies in the world, which is why he is bullish on the crypto stock.
The Bullish Case For the Crypto Exchange
In an X post, market commentator The Milk Road pointed out the “bullish reality” that everyone was ignoring even as Coinbase missed Q4 earnings. They noted that the crypto exchange is not the same company as it was in 2021, considering it now boasts 12 different products that are generating $100 million annually.
As part of the bullish thesis for the COIN stock, The Milk Road further noted that Coinbase’s trading volume hit $5.2 trillion for the year, up 156% year-over-year (YoY). At the same time, the top crypto exchange’s market share doubled to 6.4%.
The market commentator also noted that the Q4 miss occurred because consumer transaction revenue declined, a problem they said Coinbase is systematically addressing. The Milk Road declared that Coinbase is the incumbent once the next wave of institutional adoption hits, and that the exchange will also capture the next retail mania. “One quarter’s miss during a downturn doesn’t change the trajectory. The “Everything Exchange” thesis is playing out,” they concluded.
