PayPal (PYPL) and Coinbase (COIN, Financial) have announced an enhancement of their collaborative efforts, focusing on the PayPal USD (PYUSD) stablecoin. This development aims to boost the adoption, distribution, and utility of PYUSD across digital platforms.
Through this partnership, Coinbase users will gain direct access to PYUSD, allowing them to buy, sell, and trade the stablecoin without incurring platform fees. Additionally, users can redeem PYUSD at a 1:1 ratio with US dollars directly on Coinbase's platform. This initiative is designed to provide institutions already engaged in crypto activities with increased functionality using PYUSD.
The partnership further explores opportunities in decentralized finance (DeFi) and blockchain platforms, aiming to introduce new use cases for PYUSD. This builds on the collaboration initiated in 2021, which facilitated the use of PayPal accounts for immediate funding on Coinbase and enabled seamless withdrawal of fiat currency.
Both companies are dedicated to exploring innovations that could expedite the adoption and practical applications of stablecoin solutions, enhancing global monetary transactions and management.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Coinbase Global Inc (COIN, Financial) is $283.29 with a high estimate of $400.00 and a low estimate of $169.00. The average target implies an upside of 45.43% from the current price of $194.80. More detailed estimate data can be found on the Coinbase Global Inc (COIN) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, Coinbase Global Inc's (COIN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Coinbase Global Inc (COIN, Financial) in one year is $184.54, suggesting a downside of 5.27% from the current price of $194.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Coinbase Global Inc (COIN) Summary page.
COIN Key Business Developments
Release Date: February 13, 2025
- Total Revenue: More than doubled to $6.6 billion in 2024.
- Adjusted EBITDA: $3.3 billion, marking two consecutive years of positive adjusted EBITDA.
- Subscription and Services Revenue: Increased 64% year-over-year to $2.3 billion.
- International Revenue Share: Reached 19% in Q4 2024.
- Q4 Total Trading Volume: $439 billion, up 137% quarter-over-quarter.
- Consumer Trading Volume: $94 billion, up 176% quarter-over-quarter.
- Consumer Transaction Revenue: $1.3 billion, up 179% quarter-over-quarter.
- Institutional Trading Volume: $345 billion, up 128% quarter-over-quarter.
- Institutional Transaction Revenue: $141 million, up 156% quarter-over-quarter.
- Subscription and Services Revenue (Q4): $641 million, up 15% quarter-over-quarter.
- Net Income: $1.3 billion in Q4, benefiting from $476 million in pretax gains on crypto asset investments.
- USD Resources: Grew to $9.3 billion by the end of Q4 2024.
- Assets on Platform: $404 billion as of December 31, 2024.
- Q1 2025 Transaction Revenue: Approximately $750 million year-to-date.
- Q1 2025 Subscription and Services Revenue Outlook: Expected to be between $685 million and $765 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Coinbase Global Inc (COIN, Financial) reported a significant increase in total revenue for 2024, more than doubling to $6.6 billion.
- The company achieved $3.3 billion in adjusted EBITDA, marking two consecutive years of positive adjusted EBITDA.
- Subscription and services revenue grew by 64% year-over-year to $2.3 billion, driven by USDC, staking, and Coinbase One.
- Coinbase Global Inc (COIN) reached an all-time high for both US spot and global derivatives market share in Q4.
- The company is well-positioned to capitalize on new regulatory tailwinds, enhancing its long-term strategy to be the most trusted and compliant platform.
Negative Points
- The lower interest rate environment and the impact of new USDC ecosystem participants led to a decline in stablecoin revenue by 9%.
- Operating expenses increased by 19% in Q4, driven by higher transaction expenses and increased marketing spend.
- Despite the strong quarter, the company faces challenges in maintaining its market share amidst increasing competition from other platforms.
- The rapid increase in the number of tokens being created presents a challenge for Coinbase Global Inc (COIN) in managing its listing process.
- The company needs to balance consumer protection with providing access to a broad range of assets, which could complicate its product offerings.
