Shares of cryptocurrency exchange platform Coinbase Global (NASDAQ: COIN) jumped as much as 11.6% on May 25, before ending the day up 9.5% to close at $67.17.
Coinbase has become the first cryptocurrency company to enter the Fortune 500 list. The company ranked #437 on Fortune’s list of the largest U.S. companies this year. It’s a remarkable feat, given all the negativity surrounding the crypto market lately.
Coinbase provides end-to-end financial infrastructure and technology for the crypto-economy. The company’s performance depends on the crypto trading volumes, and 2022 has been a very rough year for the market. The company has approximately 98 million verified users. In Q1, Coinbase processed trading volume worth $309 billion, with $256 billion worth of assets on its platform.
Amid the crypto crash, Bitcoin (BTC-USD) has fallen nearly 38% year to date, while its peer, Ethereum (ETH-USD), has witnessed a more drastic decline of 48%.
Coinbase also witnessed a massive sell-off after reporting weaker-than-expected Q1 results. The stock has lost a whopping 73.2% year-to-date amid the broader tech sell-off and the unexpected fall in cryptocurrencies.
Luckily for COIN, the Fortune 500’s list for 2022 only considers the financial performance of fiscal year 2021. Coinbase earned revenue of $7.84 billion in FY21, surpassing the threshold of $6.4 billion.
COIN Stock Prediction
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 14 Buys, four Holds, and two Sells. The average Coinbase Global price forecast of $173.94 implies a whopping 158.9% upside potential to current levels.
Closing Note
With the entry into the Fortune 500 list, Coinbase Global has added another feather to the cap. Nonetheless, the uncertain macroeconomic environment continues to pose a challenge for the crypto market, keeping investor confidence low for the time being.
Read full Disclosure
