Will Coinbase (COIN) Stock Go Up or Is the Worst Yet to Come?
The crash in cryptocurrencies has impacted several stocks as well. The stocks include companies like MicroStrategy, which has bought 105,085 Bitcoins. Bitcoin mining companies have tumbled and followed cryptocurrencies lower. Coinbase (COIN) stock has also plummeted. Coinbase went public through a direct listing with a reference price of $250. The stock went to hit a 52-week high of $429.54 but soon plummeted to a 52-week low of $208. The stock was trading lower in early trading on June 22 and isn't far away from its all-time lows. Coinbase has a median target price of $335, which is a premium of over 50 percent. The highest target price of $650 is almost three times what COIN stock currently trades at. After the recent crash, it even trades below the lowest target price of $225. While COIN stock has been falling, most Wall Street analysts are bullish on the stock. Among the 17 analysts covering the stock, 14 have rated it as a buy or some equivalent. Four analysts have a hold rating, while one analyst has a sell rating. I am surprised that Ark didn't buy more Coinbase: 749,000 shares barely suits Wood. I bet she's back every day on this one. Cathie Wood is among the fund managers that are bullish on Coinbase stock. She added to her positions when COIN stock plummeted and sold some Tesla shares to make way for the purchase. Wood is known to back disruptive companies and was among the early backers of Tesla and Square. Cryptocurrency is among the biggest disruptions of our times even since the opinion over them is very divided. A post on WallStreetBets, which was upvoted 1,600 times, talked about the outage on Coinbase amid the volatility in cryptocurrencies. A user comment on the IPO thread talked about Wood buying COIN stock and expressed optimism about the stocks outlook. Another user commented that they are waiting to buy the stock below $250. Thanks to the recent crash, Coinbase stock now trades way below $250, which could be tempting for many buyers. COIN stock is among the top 25 discussion topics on Reddit group WallStreetBets. Reddit traders have been instrumental in pumping up several stocks, especially GameStop and AMC Entertainment . Both of the stocks trade way above what Wall Street analysts think they are worth. COIN stock is a proxy play on cryptocurrencies. If you believe in cryptocurrencies and want to play the theme, Coinbase stock might fit in the bill. Coinbases forecast depends on how the cryptocurrency market evolves over the next few years. Article continues below advertisement  Cryptocurrency adoption and trading have increased significantly over the last few years, which has led to higher revenues for crypto exchanges like Coinbase. Higher trading in cryptos would help propel COINs earnings. The stock now trades at attractive valuations and its NTM EV-to-EBITDA multiple is 27.7x. The company is growing fast and its revenues are expected to rise five-fold in 2021. Also, it has a high EBITDA business. Article continues below advertisement  Source: TIKR COIN stock near all-time lows