Why is Coinbase Stock so Cheap?

It’s not all bad news for this crypto stock.

Andrew Willis 18 November, 2022 | 4:58AM
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Andrew Willis: The ongoing FTX saga has not made the crypto world look good, and that includes the exchange platform Coinbase (COIN). But notice how the stock bounced back after the big reveal from Sam Bankman-Fried?

As equity analyst Michael Miller points out, while the FTX implosion is a negative event for Coinbase in the near term, when it comes down to it, what actually happened was that one of the company’s biggest competitors collapsed. In the long run, that could be a good thing for what is now the 2nd largest crypto exchange in the world.

The price action we’ve seen recently in the Coinbase stock is yet another reminder of the inherent risks with crypto, with considerations for Coinbase holders as lower-value transactions lead to lower trading fees… Although the latest meltdown likely helped with trading volume.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Coinbase Global Inc Ordinary Shares - Class A236.65 USD-3.41Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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