What's Going On With Coinbase Stock As Bitcoin Rallies?

Coinbase Global, Inc. COIN shares are trading higher Monday as Bitcoin trades at all-time highs.

The Details:

Shares of several crypto-related companies, including Coinbase, are trading higher as the recent crypto rally continues, and Bitcoin is trading above the $72,000 level.

Goldman Sachs analyst Will Nance upgraded Coinbase from Sell to Neutral and raised the price target from $170 to $282 on Friday. The analyst noted the recent rally has been driven by the Bitcoin halving event, the launch of BTC ETFs and increased political and geopolitical uncertainty.

Goldman Sachs also highlighted Coinbase's daily volumes have "reached levels not seen since 2021." In fact, the company's crypto trading platform has crashed several times under the pressure created by the large surge in traffic on the platform. 

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COIN Stock Forecast 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Coinbase Global, over the past 5 years, it's annualized stock performance is -4.81%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $208.21.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

COIN Price Action: According to Benzinga Pro, Coinbase Global shares are up 4.3% at $267.64 at the time of publication.

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