Coinbase Stock Keeps Surprising Because It’s More Than a Crypto Play
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Coinbase is setting solid ground in the industry with new partnerships and an NFT platform. COIN stock is a buy...
The surge and popularity of Bitcoin (CCC:BTC-USD) gave a solid push to Coinbase (NASDAQ:COIN) stock, as the prices of Bitcoin increased, Coinbase saw a rise in revenue and it became the go-to platform for crypto investors.
Soon there were many assets to invest in and Bitcoin was not the only reason people started using Coinbase.
COIN stock is proof that the company is doing something right. The stock has gone from $240 to $300 in a month. It is up nearly 38% this month and there are several reasons to bet on the stock.
I have always been bullish on COIN stock and had recommended a buy on Sept. 4 when it was trading at $268. If you had invested then, you could be sitting on 12% gains. It has strong potential to keep moving upwards and here are the two reasons that will take the stock higher.
Partnerships and COIN Stock
Coinbase has entered into a partnership with Facebook (NASDAQ:FB). As per the terms of the partnership, the company will offer support for the Novi digital payments platform that runs on Pax Dollar, a cryptocurrency.
Facebook is planning to build a new digital wallet portal called Novi where users will be able to make cross-border transactions.
The funds in Novi will be converted to Pax Dollar, a stablecoin, and they will then be sent to other parties and converted to their local currency. Coinbase will offer custodial services to Facebook and this is no less than a feat.
The company has entered into another partnership with NBA. It is a multi-year partnership where Coinbase will create interactive experiences for NBA fans. We do not have the details of the partnership yet but it is a strong move in the industry. It has already taken COIN stock higher.
This is only the beginning for Coinbase. The partnerships show that growth is in the early stages and companies see strong potential in Coinbase. It will also have an impact on the bottom line in the coming year.
The company is launching an NFT marketplace known as Coinbase NFT. It enables users to buy, sell and mint tokens or NFTs. It will include other social features on the platform to make it user-friendly.
NFTs are growing in popularity and have become the new favorite of investors. The NFT waiting list has exceeded 1 million in just a few days.
By adding NFTs, the company is only giving more reasons to people to join its platform. It will be interesting to see how the NFT platform works and whether the company continues to attract users.
The Bottom Line
Many Wall Street analysts share my opinion and are bullish on COIN stock. Mizuho analyst Dan Dolev has a price target of $300 on COIN stock.
Further, JMP analyst Devin Ryan has a target price of $330 for COIN stock after the announcement of the Facebook partnership.
Fundamentally, Coinbase is a solid company with strong revenues. Due to the new partnerships and NFT platform, the company may report higher expenses this quarter but it is set up for solid growth.
The Facebook and NBA partnership is proof that Coinbase is a great company with strong growth potential. It is proving its worth time and again. The company is no longer limited to Bitcoin and its value but offers several products and services to customers.
The NBA could be massive for the company as it has millions of viewers. Stop thinking about Coinbase as the only platform to play Bitcoin because it is so much more than that today. I believe the stock will continue to grow in the long term and is a good investment before the third-quarter results.
The company will announce third-quarter results on Nov. 9.
On the date of publication, Vandita Jadeja 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.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analyses.
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