How to Trade Coinbase After Q4 2024 Performance

After Coinbase's initial public offering (IPO) in April 2021, the stock price collapsed over 90% lower by January 2023. Since this all-time low, the stock has rallied over 700% higher but has still not managed to trade at its IPO price from 2021.  

Learn more about Coinbase's fourth quarter 2024 performance and what analysts are forecasting for the stock. 

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Coinbase Q4 2024 Performance

Here are some of the key highlights from the fourth quarter 2024 earnings report from Coinbase:  

• Earnings per share: $4.68 vs $1.81 expected 
• Revenue: $2.27 billion vs $1.88 billion expected 
• Net income: $1.3 billion compared to $273 million prior year 
• Transaction revenue doubled from last year to $1.56 billion 
• Total trading volume up 185% year over year to $439 billion 

Coinbase beat analyst estimates on most financial performance metrics. The last quarter was its biggest quarterly revenue in three years. Most of the growth was down to a post-election rally in the cryptocurrency market, which helped to boost the company's trading volume and transaction revenue.

While Coinbase is the largest marketplace in the United States for buying and selling cryptocurrencies the company announced plans to try and diversify its revenue stream away from its trading model. Currently, this makes up 68.5% of its total revenue with most of the revenue coming from retail traders.

The company also makes revenue from subscriptions and services such as stablecoins, custody and staking. It has a revenue-sharing agreement with the USDC stablecoin which may help to drive future growth. However, this will depend on whether the stablecoin bill in the U.S. can pass Congress later this year.

Some analysts believe that much of the growth has been down to the more crypto-friendly US government led by President Donald Trump but that this is now already priced in. It's one reason why there are now many more analysts with a hold rating on the stock as highlighted below. 

Coinbase Stock Forecast - What do the Analysts Say?

According to 19 analysts polled by TipRanks for a Coinbase stock forecast in the past 3 months, there are currently 8 buy, 11 hold and 0 sell ratings on the stock. The highest price level for a Coinbase stock forecast is $475.00 with the lowest price target at $255.00. 

The average price target for a Coinbase stock forecast is $344.35.

An Example Trading Idea for the Coinbase Stock Price

An example trading idea for the Coinbase share price could be as follows:  

• Buy the stock on a move back to its pre-earnings price around $303 to allow for volatility. 
• Target just below the highest analyst price target of $475.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Coinbase shares:  
  • If target is reached = $1,720.00 potential profit [($475.00 - $303.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as the reasoning for an increase in Coinbase's transaction revenue has come to an end as stated earlier.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admiral Markets Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Coinbase stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Coinbase Stock in 4 Steps  

With Admiral Markets, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admiral Markets to access the dashboard.
2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
3. Search for your stock in the search window at the top.
4. Input your entry, stop-loss and take profit levels in the trading ticket.

Click on the banner below to trade Coinbase stock today ▼▼▼ 

Do You See the Coinbase Stock Price Moving Differently?   

If you believe there is a higher chance Coinbase's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admiral Markets also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to speculate on rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following: 

• This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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• The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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• Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.