3 Reasons Why COIN Stock Is Making a Big Move Higher Today
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, investors appear to be getting bullish on Coinbase, bidding up shares of COIN stock as the rally in crypto...
Today, cryptocurrency exchange Coinbase (NASDAQ:COIN) has seen impressive strength. Currently, shares of COIN stock are up more than 4% at the time of writing on higher-than-average volume.
This move continues a relatively bullish trend for Coinbase this month. In the month of October alone, COIN stock has risen by 12%. This move appears to be a reflection of a recovery in crypto prices, as well as sentiment surrounding the crypto ecosystem.
As one of the largest digital asset exchanges in the world, Coinbase is often looked to as a pick-and-shovel play on the crypto sector. Accordingly, COIN stock is often used as a barometer of investor interest in this hypergrowth space.
Today, it appears investors are pointing to three catalysts that are taking this stock higher. Let’s dive in.
3 Catalysts Behind Today’s Move in COIN Stock
Among the most important upcoming catalysts for Coinbase is the company’s upcoming earnings release. According to a recent Piper Sander research note, expectations are that Coinbase could report earnings per share (EPS) of $2.62 this coming quarter.
Now, this is a significant upgrade from last quarter’s consensus earnings estimates of $2.26 per share. However, given the fact that Coinbase absolutely blew these estimates out of the water, reporting $6.42 in EPS this past quarter, maybe investors were expecting more. Nonetheless, investors appear to be viewing this EPS boost positively today.
Secondly, Coinbase announced this weekend that the crypto exchange will add three altcoins to its trading platform. The tokens Function X (CCC:FX-USD), Centrifuge (CCC:CFG-USD) and Jasmy (CCC:JASMY-USD) are now available for trading on the exchange’s platform. These relatively lesser-known cryptocurrency tokens tied to niche blockchain projects have some investors excited about the growth potential of Coinbase.
Finally, in a recent interview, billionaire Bill Miller made a stark prediction. Mr. Miller suggested that Coinbase’s market capitalization could trump that of electric vehicle (EV) juggernaut Tesla (NASDAQ:TSLA).
Any such prediction may be taken with a grain of salt. However, Miller’s comments surrounding Coinbase’s disruptive potential are worth taking a look at. Today, it appears investors in COIN stock are taking these seriously, biding up shares of this cryptocurrency play aggressively.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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