Trading Coinbase After Q4 2023 Performance

February 20, 2024 04:38

Since the approval of the first spot bitcoin ETF, investors have been closely tracking its impact on cryptocurrency stocks such as Coinbase. Learn more about Coinbase's fourth-quarter performance and what the analysts are forecasting for the stock.

Stock: Coinbase Global Inc
Symbol for Invest.MT5 Account: COIN
Date of Idea: 19 February 2024
Time Line: 1 - 6 months
Entry Level: $197.00
Target Level: $250.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 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 2023 Performance

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

  • Earnings per share of $1.04 vs $0.02 expected 
  • Revenue of $953.8 million vs $826.1 million expected 
  • Net income of $273 million for fourth-quarter 
  • Revenue up 50% from same time prior year 
  • Consumer trading revenue up 78% quarter of quarter to $493 million 

Coinbase is the largest venue in the United States for buying and selling cryptocurrencies. In its last quarterly report, it reported a profit for the first time in two years. It beat analyst expectations on most metrics including earnings per share and revenue.  

Its 78% increase in consumer trading revenue was largely attributed to the U.S. Securities and Exchange Commission's approval of a spot bitcoin exchange-traded fund (ETF). The ETF enables investors to receive the performance of bitcoin as a share that is traded on a regulated exchange.  

As the ETF holds spot bitcoin there has been a flurry of activity in the digital token. This renewed interest in cryptocurrencies helped to lift transaction revenue. Coinbase also provides custodial services to eight of the ten current spot bitcoin ETFs, helping to lift its revenue.  

The news around spot bitcoin ETFs helped lift Coinbase's share price nearly 150% higher from the lows of November 2023. However, the stock is still down more than 50% from its all-time high price of $429.54, recorded on the day of its initial public offering (IPO) on 15 April 2021.  

Much of the news may have already been priced into the stock. The future growth of Coinbase's share price will depend on a revival of the cryptocurrency market which has stagnated for years and may continue for years to come.  

The uncertainty and volatility around any crypto-related stock is why the average price target for Coinbase's shares varies widely and why there is almost an even number of analysts with a buy, hold, and sell rating on the stock, as seen below. 

Coinbase Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Coinbase stock forecast in the past 3 months, there are currently 8 buy, 8 hold and 6 sell ratings on the stock. The highest price level for a Coinbase stock forecast is $250.00 with the lowest price target at $60.00.

The average price target for a Coinbase stock forecast is $163.80.

Source: TipRanks, 19 February 2024


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 break above the post-earnings high at $197.00 to allow for volatility. 
  • Target just below the highest analyst price target of $250.00. 
  • 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 = $530.00 potential profit [($250.00 - $197.00) * 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 considering that most of the news is already priced in, the rest of the crypto market continues to stagnate, and the underlying sector is very volatile.

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 Admirals 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.

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 Admirals, you can buy shares in companies like Coinbase with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade 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 right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Coinbase. Monthly. Date: April 2021 to Feb 2024, captured on 19 Feb 2024. Past performance is not a reliable indicator of future results or future performance.


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

Do You See the Coinbase Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Coinbase share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals 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 potentially profit from rising and falling stock prices.


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 Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) 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.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • 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. 
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.