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Coinbase Stock Slides 18.5% in 3 Months: Time to Buy the Dip?

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Key Takeaways

  • COIN stock has dropped 18.5% in 3 months, underperforming its industry's 10.3% decline.
  • Coinbase is expanding globally, adding assets, and exploring stablecoin ties with top U.S. banks.
  • Despite strong growth plans, COIN trades at a premium and faces declining earnings estimates.

Shares of Coinbase Global Inc. (COIN - Free Report) have lost 18.5% over the past three months compared with its industry’s decrease of 10.3%. The sector has increased 2.3% and the Zacks S&P 500 composite has risen 4.2% in the same time frame. 

As the largest registered crypto exchange in the United States, Coinbase is well-placed to take advantage of increased market volatility and rising crypto asset prices. As the United States positions itself as a global crypto hub, COIN’s ambition to become an all-encompassing exchange for the industry appears well aligned.  Coinbase is poised for a strong 2026 as it builds on the momentum of an active 2025 while executing on its long-term strategic roadmap.  

COIN vs Industry, Sector, S&P 500 in 3-Months

Zacks Investment Research
Image Source: Zacks Investment Research

Robinhood Markets (HOOD - Free Report) , a crypto-oriented company, has gained 1.8% over the past three months, while Interactive Brokers Group, Inc. (IBKR - Free Report) has gained 2.6% in the same time frame.

Robinhood has evolved from a brokerage firm mainly trading in digital assets to a more mature and diversified entity, striving to widen its market and reach. Robinhood continues to diversify its product base to acquire new clients and gain market share. 

Interactive Brokers is known for its advanced electronic trading platforms and global market access. The company leverages proprietary systems to automate nearly every aspect of the brokerage process — from trade execution and risk management to compliance and customer onboarding. This enables Interactive Brokers to operate with minimal human intervention and significantly lower costs than traditional brokers.

Coming back to Coinbase, should you consider adding the stock to your portfolio based on positive price movements only? Let’s delve deeper.

Factors Favoring COIN

Coinbase is prioritizing growth by steadily expanding its market share in U.S. spot and derivatives trading while broadening its product portfolio and global footprint. The company continues to add new cryptocurrencies and tokenized equities, regularly evaluating and launching digital assets—reflecting its commitment to a pro-crypto ecosystem.

Coinbase has also long pursued strategies to bridge traditional finance and crypto. Recently, it held discussions with major U.S. banks on pilot programs involving stablecoins, custody and trading services. Such collaborations are not new for the company, which has previously partnered with institutions including JPMorgan, Citi and PNC Bank. A more supportive regulatory backdrop and growing acceptance of digital assets within traditional banking have further strengthened these initiatives.

Mergers and acquisitions remain a key growth lever. In 2025 alone, Coinbase completed nine acquisitions aimed at expanding capabilities and accelerating product development. International expansion is another priority, highlighted by Coinbase’s return to India’s market after nearly three years. This move is supported by its investment in CoinDCX, a leading exchange serving India and the Middle East.

Looking ahead to 2026, Coinbase plans to focus on real-world asset (RWA) perpetuals, specialized exchanges and trading terminals, next-generation decentralized finance infrastructure, and the integration of artificial intelligence and robotics. These initiatives are designed to create a comprehensive ecosystem of products and services and further reinforce Coinbase’s industry leadership.

Financially, Coinbase remains fundamentally strong, supported by solid liquidity and a consistent reduction in debt in recent quarters, leading to an improved total debt capital ratio. However, the issuance of $2.6 billion in convertible notes introduces concerns around potential shareholder dilution and increased financial leverage.

Muted Analyst Sentiment for COIN

The Zacks Consensus Estimate for 2025 and 2026 earnings has moved 6.3% and 1% south, respectively, in the past 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2025 and 2026 revenues implies an 11.7% and a 13.2% year-over-year increase, respectively. While the consensus estimate for 2025 earnings suggests a 4.7% increase, the same for 2026 indicates a 27.1% year-over-year decrease.

COIN Shares Are Expensive

COIN shares are trading at a premium to the industry. Its 12-month forward price-to-earnings of 45.29 is much higher than the industry average of 24.21X. It is, however, trading lower than its median of 56.23.

Zacks Investment Research
Image Source: Zacks Investment Research
 

Its Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.

Though COIN is expensive compared to HOOD, it is cheaper than IBKR.

What Should Investors Do?

Coinbase’s focus on driving crypto market growth, expanding spot trading share across retail and institutional platforms, and enhancing the trading experience through continued innovation should support faster growth. Rising average USDC balances on the platform, higher USDC market capitalization, and stronger average crypto prices suggest greater revenue stability. However, risks remain. Lower volatility or declines in the prices of Bitcoin, Ethereum and other crypto assets could negatively impact earnings, asset valuations, future cash flows, and liquidity, potentially affecting the company’s ability to meet its obligations.

Given a premium valuation, projected declines in earnings and a VGM Score of F, we stay cautious on this Zacks Rank #3 (Hold) stock presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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Interactive Brokers Group, Inc. (IBKR) - free report >>

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Robinhood Markets, Inc. (HOOD) - free report >>

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