Analysts Remain Bullish on Coinbase Amid Recent Decline

In the ever-changing landscape of cryptocurrency, analysts at Bernstein, a respected research and brokerage firm, have reiterated their bullish stance on Coinbase (COIN). Despite the company’s recent fourth-quarter results falling short of Wall Street expectations, Bernstein argues that the stock is “too cheap to sell.” Selling pressure has driven the stock down significantly, closing at $141.09 on February 12, and sitting near the lower end of its 52-week trading range, which spans from $139.36 to $444.65.

Current Stock Performance and Market Trends

As of now, Coinbase has faced a challenging year, with a staggering 37.6% decline year-to-date and a nearly 48.7% fall over the last 12 months. This underperformance is particularly stark when compared to the S&P 500, which the stock has lagged by 61.6%. Despite these daunting statistics, Bernstein analysts remain optimistic about the company’s potential, citing a substantial upside of 212% for Coinbase. Their confidence is rooted in the stock trading at approximately 11 times its projected 2025 earnings based on enterprise value, which they find to be an appealing valuation point.

Strong Balance Sheet and Recovery Potential

Bernstein highlighted Coinbase’s robust balance sheet, boasting $5.4 billion in net cash and digital assets. This financial resilience serves as a buffer against the inherent volatility of the cryptocurrency markets. Analysts note that, despite the pain points in the current market, it may be wise to ride out the turbulence rather than panic while close to the market lows. Their expectation centers around a market recovery leading into 2026 and 2027, allowing for long-term strategic positioning.

Increasing Trading Activity

Another factor contributing to Bernstein’s optimistic outlook is the growing trading activity on the Coinbase platform. Reports indicate that the exchange’s total trading volume reached $5.2 trillion in 2025, indicating an increase of over 150% year-over-year. This growth is attributed partially to Coinbase’s acquisition of Deribit, completed in mid-August, and the company’s focus on expanding its derivatives offerings. Although consumer trading volume saw a dip of 6% quarter-over-quarter, institutional revenues surged by 37%, further reinforcing confidence in Coinbase’s operational capabilities.

Financial Results and Strategic Priorities

Despite the positive trading activity, Coinbase reported a revenue figure of $1.8 billion for the fourth quarter, a 5% decline compared to the previous quarter. Transaction revenue fell by 6%, and subscription and services revenue decreased by 3% over the same time frame. The firm logged a net loss of $667 million, primarily due to a significant unrealized loss on its crypto investment portfolio and strategic investments. Nonetheless, Bernstein analysts have focused on Coinbase’s long-term strategic priorities, emphasizing the company’s aim to become an "everything exchange"—a one-stop platform for diverse financial products, including crypto, derivatives, and equities.

Future Outlook and Product Diversification

Looking forward, Coinbase’s management is committed to enhancing its stablecoin and payments infrastructure and integrating decentralized finance (DeFi) capabilities within its app. These initiatives are part of a broader strategy to improve the utility of its platform while expanding its market reach. Bernstein has reiterated its outperform rating and set a price target of $440 for the stock, citing a diversified product roadmap that features 12 products now generating over $100 million in annual recurring revenue (ARR).

Conclusion

In summary, even amidst the recent downturn, Bernstein analysts maintain a positive outlook on Coinbase, emphasizing its strong balance sheet and growth potential in trading volumes. With strategic priorities that position the company for long-term recovery and diversification of product offerings, investors may find value in riding out current volatility in anticipation of future gains. They believe that the combination of strong financial metrics, a solid operational framework, and innovative strategies will ultimately solidify Coinbase’s position as a leader in the cryptocurrency market. As the landscape continues to evolve, Coinbase’s focus on long-term growth may offer investors a worthwhile opportunity to capitalize on the recovery of the crypto market as we look ahead to 2026 and beyond.