Coinbase Global Intrinsic Value – Coinbase Global Embraces Diversification, Cost Reduction, and Optimism for Future Bull Market
May 16, 2023
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Coinbase Global ($NASDAQ:COIN) is a cryptocurrency exchange company based in San Francisco, California. The company has recently undertaken a series of measures to prepare for the future bull market. To diversify their revenue streams and reduce costs, Coinbase is currently embracing a range of market opportunities. One such opportunity is to provide more services to institutional investors and large companies. Coinbase is also exploring new ways to increase liquidity and access to capital, such as providing loans, diversifying its asset portfolio, and entering new markets.
Additionally, Coinbase has reduced its operating costs by streamlining operations and cutting down on staff. In addition to diversification and cost reduction, Coinbase is exhibiting optimism for the future bull market by increasing its investments in research and development. It is also looking to improve its customer experience by introducing more user-friendly platforms. It is also focusing on expanding its user base through marketing campaigns, such as offering incentives for referrals. The company’s diversification, cost reduction, and focus on customer experience all point to an optimistic outlook for its future growth.
Earnings
COINBASE GLOBAL‘s Q1 earnings report of FY2023 as of March 31 2023 has been released, revealing a total revenue of 772.53M USD, and a net income loss of 78.9M USD. Compared to the same period last year, the total revenue decreased by 33.8%. Over the last three years COINBASE GLOBAL’s total revenue has dropped significantly from 1801.11M USD to 772.53M USD. In light of these figures, COINBASE GLOBAL has embraced diversification and cost reduction as part of its strategy for future growth. Through diversification, COINBASE GLOBAL is able to reduce its dependence on any one source of revenue, thereby protecting it from volatility and market downturns.
By carefully managing costs, COINBASE GLOBAL is able to maintain competitive pricing, allowing it to remain competitive in a highly competitive industry. As more people become aware of the benefits of cryptocurrency and blockchain technology, the demand for these services is expected to grow. With this in mind, COINBASE GLOBAL is prepared to capitalize on any potential opportunities that may arise in the upcoming year. With its diversification and cost reduction strategies, as well as its optimism for the future, COINBASE GLOBAL is positioned to capture the upside of any potential bull market that may come in the near future.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coinbase Global. More…
| Total Revenues | Net Income | Net Margin |
| 2.8k | -2.27k | -75.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coinbase Global. More…
| Operations | Investing | Financing |
| -1.03k | 1.69 | -4.65k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coinbase Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 139.3k | 133.63k | 24.2 |
Key Ratios Snapshot
Some of the financial key ratios for Coinbase Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 81.6% | – | -90.4% |
| FCF Margin | ROE | ROA |
| -39.3% | -28.4% | -1.1% |
Market Price
On Monday, COINBASE GLOBAL stock opened at $58.4 and closed at $60.8, rising 6.0% from the previous closing price of 57.3. COINBASE GLOBAL is furthering its commitment to diversification by expanding into other markets and developing new products and services. The company has recently announced plans to offer cryptocurrency trading, as well as a host of new features such as staking, margin trading, and more. In addition to diversification, COINBASE GLOBAL is also focused on reducing costs associated with its services. The company has implemented a cost-reduction program that includes a reduction of commissions, fees and spreads for its customers.
This program is intended to make the service more accessible and affordable for investors. The company’s past performance and current investment strategy have placed it in a favorable position to capitalize on any potential upside in the market in the future. As the crypto sector continues to mature, COINBASE GLOBAL stands ready to take advantage of any opportunities that may arise. Live Quote…
Analysis – Coinbase Global Intrinsic Value
At GoodWhale, we conducted an analysis of COINBASE GLOBAL‘s financials to assess the fair value of the stock. We concluded that based on our proprietary Valuation Line, the fair value of COINBASE GLOBAL shares is around $69.9. Currently, the market price of COINBASE GLOBAL stock is trading at $60.8, meaning it is undervalued by 13.0%. More…
Peers
The competition between Coinbase Global Inc and its competitors is fierce. Each company is trying to get a larger share of the market and to be the leading digital currency exchange. Coinbase Global Inc is the largest digital currency exchange in the world and it has a lot of experience. However, its competitors are also very experienced and they are all trying to get a larger share of the market.
– Riot Blockchain Inc ($NASDAQ:RIOT)
Riot Blockchain Inc. is a cryptocurrency mining company that focuses on Bitcoin mining. The company has a market capitalization of $981.09 million and a return on equity of -17.02%. Riot Blockchain Inc. was founded in 2000 and is headquartered in Castle Rock, Colorado.
– Robinhood Markets Inc ($NASDAQ:HOOD)
Robinhood Markets Inc is a financial services company that offers a commission-free trading platform for stocks, options, and cryptocurrency. The company has a market cap of 9.19B as of 2022 and a Return on Equity of -33.37%. Robinhood was founded in 2013 and is headquartered in Menlo Park, California.
– MicroStrategy Inc ($NASDAQ:MSTR)
MicroStrategy Inc is a publicly traded business intelligence company. The company has a market cap of 2.66B as of 2022 and a ROE of -77.69%. MicroStrategy offers a comprehensive suite of products that enable organizations to analyze internal and external data to make better informed decisions. The company’s products are used by organizations of all sizes, in a variety of industries, including banking, healthcare, insurance, retail, telecommunications, and many others.
Summary
Coinbase Global (COIN) has positioned itself for strong growth in the coming bull market. It has diversified its revenue sources through its new trading platform, Coinbase Pro, as well as its Coinbase Prime offering for institutional investors.
Additionally, the company has taken steps to reduce expenses by laying off some employees and tightening spending. The stock price went up the same day, indicating that investors are optimistic about its future prospects. Investors should continue to monitor the company’s progress in diversifying its revenue and cutting costs, which could help the stock price increase in the upcoming bull market.
