After criticism of yet another company by Wall Street, Coinbase scored big on the stock market this week. Coinbase Global Inc. was valued at $100 billion on Wednesday, the first day of going public. The company’s shares then climbed as high as 6.4% a day after. The criticism of the company by Wall Street giants and the weakness of other cryptocurrencies including Bitcoin, in part, fueled the success of Coinbase.
Continuing strong for two days, the biggest U.S. cryptocurrency exchange stock closed at $328.21 per share, valuing Coinbase at $85.8 billion. While its stock is more than 30% above the reference price of $250, it is still far away from the $429.59 peak hit in the first few minutes of trading.
The stock ($COIN) was doing very well that analysts encouraged consumers to buy. Analysts at BTIG on Thursday gave a “buy” rating and a price target of $500. Additionally, Kenneth Hill of the Coop Capital Markets became the latest analyst who advised clients to buy shares of the exchange, highlighting “lots of runway” for the company to “takeoff”.
However, there are concerns that the volatility in digital assets and regulatory uncertainty may affect the company’s long-term share price, as well as competition from other players such as Binance, Knaken, and Gemini.
References:
1) Bursztynsky, J., & Browne, R. (2021, April 15). Coinbase stock closes down day after landmark Nasdaq debut. Retrieved April 20, 2021, from https://www.cnbc.com/2021/04/15/coinbase-coin-climbs-11percent-in-premarket-after-nasdaq-debut.html?&qsearchterm=COINBASE
2) Lipschultz, B., & Jarvis, P. (2021, April 16). Coinbase Rallies as Wall Street Optimism Bucks Bitcoin’s Dip. Retrieved April 20, 2021, from https://www.bloomberg.com/news/articles/2021-04-16/coinbase-slips-as-stock-seeks-to-establish-level-after-listing
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