Bull of the Day: Coinbase (COIN)

Coinbase Company OverviewZacks Rank #1 (Strong Buy) stock Coinbase Global (COIN) is the leading American crypto exchange platform. Coinbase operates the largest exchange in the US by volume and offers consumers access to the broadest selection of crypto assets in its marketplace. Their product offerings primarily include trading products that generate transaction revenues and a variety of ecosystem products, many of which generate subscription and service revenues. Below are three significant bullish catalysts for the crypto leader:1.       Trump Taps Pro Crypto Cabinet NomineesThis November, President-elect Donald Trump won his second trip to Pennsylvania Avenue with several of the same policies that won him his 2016 bid, including promises to lower taxes, stop foreign wars, and a crackdown on illegal immigration (amongst other things). However, Trump’s latest platform has changed dramatically from one aspect – crypto. Once a crypto skeptic, Donald Trump reportedly owns nearly $8 million worth of crypto, is releasing NFTS, and is appointing pro crypto nominees for critical cabinet positions.During the heat of the presidential election campaign, Trump promised a Bitcoin conference audience that he would fire the current Securities and Exchange Commission (SEC) chair, Gary Gensler, on day one. Unsurprisingly, Gensler promised to step down as SEC chairman in January rather than being fired. Gensler, who was seen by the industry as anti-crypto, will be replaced by Paul Atkins, a businessman and crypto lobbyist. Meanwhile, Trump is not stopping at the SEC chair. Last week, Trump announced he would appoint David Sacks, a successful VC and member of the so-called “PayPal Mafia,” as his AI and crypto czar. Sacks, co-host of the wildly popular “All In” podcast, is seen as pro-business and crypto and has even welcomed Coinbase CEO Brian Armstrong onto the podcast previously. Finally, the incoming administration will tap Armstrong himself for a crypto advisory role. All in all, the crypto regulation environment will flip 180 degrees from anti-crypto to pro-crypto under the new Trump administration.2.       Crypto ETFs: Solana and XRP Next?Earlier this year, the iShares Bitcoin ETF (IBIT) and the Fidelity Wise Origin BTC ETF (FBTC) launcheswere the two most successful ETF launches of all-time, accumulating more than $3 billion in inflows in their first month of trading.Image Source: The Block, Yahoo FinanceCoinbase, the custodial exchange for most crypto ETFs, benefits dramatically by collecting a fee on the total assets under custody and earning transaction fees. With a more favorable regulatory environment on the horizon, ETF operators have put in applications for ETFs in “altcoins” such as Solana (SOL) and Ripple (XRP). Should these ETFs be approved (which they likely will be under the new regime), Coinbase will benefit handsomely.3.       A Flock to the Bitcoin StandardSince software company MicroStrategy (MSTR) began aggressively adding Bitcoin to its balance sheet, the stock has outperformed every asset class.Image Source: FactSetAfter witnessing MSTR’s success with “The Bitcoin Standard,” other companies like Semler Scientific (SMLR) and Riot Platforms (RIOT) are following a similar strategy and adding Bitcoin to their balance sheets. The massive crypto demand from public companies will mean more transaction fees for Coinbase.Coinbase FundamentalsFundamentally, COIN boasts the rare and sought-after combination of high growth and a massive cash hoard. Last quarter, EPS jumped 245% year-over-year, and the company’s cash stack has grown steadily since its IPO in 2021.Image Source: Zacks Investment ResearchCoinbase Technical ViewChart-wise, COIN shares are carving out a classic IPO base structure over the long-term. Should the fundamentals continue to improve as we anticipate, the stock should break out in 2025.Image Source: TradingViewBottom LineCoinbase, the leading US crypto exchange, is poised to benefit dramatically from a pro-crypto Trump administration, potential new altcoin ETFs, and increased corporate adoption of Bitcoin. COIN is set for long-term growth with its strong fundamentals, growing revenue streams, and favorable regulatory outlook.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks