Coinbase's Diversifying Revenue Base Fuels Growth Potential

Coinbase's stock has taken a hit after missing Q2 revenue expectations by 5%, but analysts see potential in its diversifying revenue base and expanding business opportunities.

The company's shares have fallen 47.37% over the past year, with its current price sitting at $172.11. However, our 24/7 Wall St. price target suggests a $212.94 value over the next 12 months, representing a potential 23.73% upside.

Coinbase CEO Brian Armstrong highlighted the company's efforts to diversify revenue through subscription and services, which reached 48% of net revenue in Q2. This shift is expected to drive growth as the stablecoin market expands to $3 trillion by 2030, up from its current $300 billion.

The bear case for Coinbase focuses on declining consumer transaction revenue and institutional business. However, the company's adjusted EBITDA remains positive at $207.8 million, and management is taking steps to reduce costs by $600 million compared to the 2025 exit run rate.