Coinbase Global (COIN), the largest cryptocurrency exchange in the US, received a boost from Wall Street after reporting strong fourth-quarter earnings that beat analysts’ expectations. The company’s revenue and net income soared to $2.23 billion and $1.61 billion, respectively, driven by the surge in crypto trading activity and fees.
COIN’s Rating
Several analysts upgraded their ratings and price targets for COIN, reflecting its solid growth prospects and competitive edge in the crypto space. However, not everyone was impressed by Coinbase’s stellar performance.
ARK Invest, one of the most prominent backers of the crypto exchange, decided to sell almost 500,000 COIN shares worth about $90 million on Friday. The move came as a surprise, given that ARK’s founder and CEO, Cathie Wood, has been a vocal supporter of Coinbase and its vision.
ARK Invest reduced its exposure to COIN across three of its exchange-traded funds: ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF).
Coinbase Stock Price Gain
Coinbase’s stock price jumped by nearly 27% to $180.31 last week, following its earnings announcement. The stock also benefited from the positive ratings and price targets from firms such as KBW, Wedbush, Canaccord Genuity, and JMP Securities, which ranged from $160 to $300.
These analysts praised Coinbase’s strong fundamentals, diversified revenue streams, and leading position in the crypto industry. On the flip side, some analysts remained cautious about Coinbase’s outlook, citing its high valuation, regulatory uncertainty, and dependence on Bitcoin prices.
JPMorgan questioned the exchange’s transparency on how much it gained from the spot Bitcoin exchange-traded funds, which are not available in the US. Mizuho maintained its underperform rating and $60 price target for COIN, arguing that its growth will slow down as competition intensifies and crypto volatility declines.
In addition to trimming its COIN holdings, ARK also sold $6.72 million worth of shares of the online trading platform Robinhood (HOOD) on Friday. Robinhood, which went public in July 2021, has faced several challenges, including regulatory scrutiny, customer lawsuits, and backlash from its users over its handling of the GameStop saga.
