Coinbase Global (COIN) shares have decreased by 10.2% over the past 5 trading days. This recent downturn is reflective of renewed worries regarding rising geopolitical tensions and delayed cryptocurrency regulations, but significant drops like this frequently raise a more challenging question: is this decline temporary or indicative of more profound issues within the company? Coinbase stock has risen 5 percent ahead of the company reporting fourth-quarter earnings today on news that Bitcoin has surged above $52,000. The company is valued at about $58 billion, with roughly $7.0 billion in revenue and a share price around $226.93.
Over the last 12 months, revenue growth stood at 48.6%, supported by an operating margin of 27.0%. Its liquidity is solid, with a debt-to-equity ratio of 0.08 and a cash-to-assets ratio of 0.41. The stock trades at a price-to-earnings multiple of 20.2 and a price-to-EBIT multiple of 16.3. Historically, in the year after sharp declines since 2010, Coinbase has delivered a median return of about 18.3%.
It appears that the stock has performed significantly worse than the S&P 500 index during various economic downturns, based on (a) the extent of the stock’s decline and (b) the speed of its recovery. COIN stock dropped 90.9% from a peak of $357.39 on November 9, 2021, to $32.53 on December 28, 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500. However, the stock fully recovered to its pre-crisis peak by June 26, 2025. Since that period, the stock rose to a peak of $419.78 on July 20, 2025, and is currently trading at $226.93.
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