Coinbase Is Soaring But My Thesis Has Broken Down (Rating Downgrade)
2025-07-10 07:28:26
Main Idea
The article discusses Coinbase Global's success in the stablecoin market and promotes a premium subscription service for investment research.
Key Points
1. Coinbase Global (NASDAQ:COIN) has emerged as a big winner in stablecoins.
2. The article promotes a premium subscription service called 'Best of Breed Growth Stocks' offering investment research and strategies.
3. Julian Lin, the author, is a financial analyst focusing on undervalued companies and growth stocks.
4. The service provides exclusive access to Julian's investment reports and portfolio recommendations.
5. Disclosures note no current stock positions and that the article is independent of Seeking Alpha's official stance.
Description
Summary I am downgrading Coinbase to a neutral rating due to the stretched valuation and slowing growth in its subscription business. While subscription and services revenue remains the company's crown jewel, transaction revenues are highly cyclical and face long-term pressure to zero. The recent stock rally appears overdone, as USDC adoption has not grown proportionately and transaction revenue growth is set to decelerate. Despite strong cash reserves and strategic M&A, I see limited upside at ...
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