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Coinbase Skyrockets: Can Momentum Last?

Matt MonacoAvatar
Written by Matt Monaco Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 5/16/2025, 2:32 pm ET 5/16/2025, 2:32 pm ET | 5 min 5 min read
Coinbase Skyrockets: Can Momentum Last? Thumbnail

Coinbase Global Inc. stocks have been trading up by 8.97 percent amid positive market response to regulatory clarity.

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Live Update At 14:32:17 EST: On Friday, May 16, 2025 Coinbase Global Inc stock [NASDAQ: COIN] is trending up by 8.97%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Coinbase’s Latest Financial Results

As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This mindset is crucial for traders who wish to succeed in the volatile world of stock markets. By acknowledging the inevitable challenges and learning from each misstep, traders can refine their strategies and become more adept at navigating market fluctuations. Understanding that trading is a continuous learning experience allows traders to remain resilient and focused on their goals, ultimately leading to more informed and successful trading decisions.

Coinbase released its first quarter financial results for 2025, presenting some revealing insights into its operations. Total revenue was approximately $1.4 billion, contributing to a net income of $65.6 million. Impressive EPS numbers are cementing trust among investors. Viewed in quarter-over-quarter terms, revenue dipped slightly from prior periods, with a revenue growth rate of 100.06% over the past five years nonetheless standing out.

Analyzing the fundamentals, Coinbase’s price-to-sales ratio sits at 10.19, reflecting investors’ high confidence. Priced at 45.83 times its earnings, the growth potential is evident. Coupled with their inclusion in the S&P 500, these numbers can translate to more substantial institutional interest.

Coinbase’s financial health appears sound with minimal leverage, as shown by a debt-to-equity ratio of just 0.4. One might say they’re sailing smoothly through financially turbulent waters with long-term debt representing a modest portion of their capitalization. Trading volumes have seen a recent surge, a testament to Coinbase’s strategic moves and crypto’s enduring allure.

The S&P 500 Inclusion Wave

Joining the ranks of the S&P 500 marks a turning point for Coinbase. More than a pleasant surprise, this news sent shockwaves through investor corridors, leading to an impressive jump in share prices. It’s like receiving a gold star from the financial world, validating Coinbase’s stature and trustworthiness.

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In the backdrop, the decision by Capital One to buy Discover Financial sparking a replacement move paved the path for Coinbase’s inclusion. This timely entry into a prestigious index is expected to attract both institutional and retail investors, boosting liquidity through higher trade volumes. There’s a strong chance of price stabilization post-inclusion due to passive investment funds mimicking S&P 500 portfolios.

Analyzing the Deribit Acquisition

The acquisition of Deribit, a crypto options behemoth, underscores Coinbase’s expansionary ambition. In the race of digital exchanges, gaining a foothold in the crypto derivatives market is crucial, and Coinbase’s $2.9 billion coup could be the ace up its sleeve.

This move rationalizes not just as a diversification strategy but also as a direct response to growing demand for advanced trading instruments. It’s a potential goldmine of new revenue streams and, in harmony with the rising cryptocurrency tide, could augment Coinbase’s financial metrics significantly.

Analyst Confidence and Future Projections

Riding on its momentum, Coinbase is receiving a flurry of favorable analyst ratings. Monness Crespi has pegged the stock at a $300 target while Rosenblatt raised its price expectation from $260 to $300. In fact, the discussions surrounding synergies from Coinbase’s transformative acquisition strategy are becoming center-stage.

Such endorsements showered with optimistic future projections not only hint at expected stock rallies but reassure existing shareholder confidence. Maintaining softening downward pressures on operational results, the upcoming phase appears constructive for Coinbase, with analysts largely projecting an upward trajectory riding on these strategic maneuvers.

Conclusion

For Coinbase, the upcoming weeks seem poised for potential elevation. Whether it manages to translate the S&P 500 elevation and the strategic acquisition of Deribit into lasting growth continues to be THE financial puzzle analysts closely follow. Breezing through this pivotal juncture requires astute strategic agility, yet optimism remains palpable in shaping its financial narrative. The question lingering on traders’ minds is if they can sustain the bullish momentum and integrate innovative solutions. As millionaire penny stock trader and teacher Tim Sykes says, “The goal is not to win every trade but to protect your capital and keep moving forward.” Only time will unveil the market’s response, yet Coinbase’s current positioning confidently rolls out a promising tale for the crypto-age trading landscape.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”