Shares of Coinbase (COIN) rose as much as 4.6% after the company outlined a roadmap including stock trading, AI-based tools, tokenization and stablecoin infrastructure in its year-end system update.
The stock hit $255.41 in early trading Thursday and was recently valued at $249.48 following Wednesday’s announcement.
JP Morgan’s Kenneth Worthington said the event showed Coinbase was expanding its reach by introducing more asset classes and tools to keep users engaged. He pointed to the introduction of U.S. stock trading, perpetual stock futures for non-U.S. users and the Coinbase Advisor product as signals that the company is reshaping its core business.
“Coinbase’s announcements last night highlighted that it offers its customers significantly more products to transact,” he wrote Thursday, adding that the expansion “significantly increases” Coinbase’s total addressable market. Although revenue details are scarce, Worthington said he sees opportunities in subscription and transaction-based models. He also noted the deployment of branded stablecoins and the expansion of the core application as important steps towards long-term commitment.
JP Morgan rates Coinbase overweight with a price target of $244.19.
Read more: Coinbase rolls out stock trading, prediction markets and more in a bid to become the ‘Everything Exchange’
Clear Street analyst Owen Lau shared a similar view, calling the update a coordinated product expansion that marks Coinbase’s transition from a crypto-only exchange to a broader financial platform. He highlighted the addition of stock trading as a notable change, especially because the company had previously downplayed the idea. The move could signal future plans to offer symbolic actions, Lau said.
The introduction of an AI-powered advisor also stood out. Lau said it could become a valuable tool to simplify investment decisions and increase customer retention, especially for less experienced users. He noted that direct deposit features and crypto loans could help Coinbase gain traction as a primary financial account, although competing with traditional banks for paycheck deposits will be a challenge.
Derivatives remain a critical part of the growth strategy, Lau wrote, citing the introduction of stock futures with up to 20x leverage and 24-hour market access. Since derivatives tend to generate higher volume and revenue stability, Lau said they could help reduce Coinbase’s earnings volatility over time. Coinbase announced the $2.9 billion acquisition of crypto options exchange Deribit in May.
Clear Street has a Buy rating on Coinbase with a price target of $415.
Citi analysts, led by Peter Christiansen, said the update is an important step that expands access to new and traditional assets while developing payments, developer tools and tokenization rails that could increase liquidity over time.
The event highlighted Coinbase’s efforts to expand access to a wider range of assets, which “strengthens the platform’s competitive moat,” analysts led by Peter Christiansen wrote.
Analysts also pointed to payments and money transfer utilities tied to the stablecoin USDC and new x402 payments as steps toward revenue diversification and the possibility of new use cases such as agent commerce.
Upgrades to Coinbase’s developer tools through CDP, as well as efforts to connect on-chain functionality to traditional finance through tokenization and on- and off-ramps, reinforce the company’s ambition to be an “operating system” for on-chain activity, analysts said.
Citi called Coinbase’s “Everything Exchange” plan ambitious and said investors will need strong execution, including clearer disclosure on how it is executed, as well as greater regulatory certainty to move past short-term volatility and focus on longer-term catalysts.
The bank said it remained convinced the upside was too big to ignore and continued to see Coinbase’s leadership strengthen, maintaining its Buy rating and $505 price target.
Barclays, on the other hand, holds an equal weighting in Coinbase with a price target of $291.
