Should You Buy Coinbase Stock As Bitcoin Soars To $68K?

Should You Buy Coinbase Stock As Bitcoin Soars To $68K?

Coinbase stock (NASDAQ: COIN) has rallied by almost 38% over the last month, considerably outperforming the S&P 500 which was up by around 8% over the same period. The gains are driven largely by the recent surge in cryptocurrency prices. Bitcoin, the bellwether cryptocurrency, has rallied by about 23% over the last month and remains up by over 120% from its July lows, trading at levels of almost $68, 000 as of Monday. The price of Ethereum has rallied by about 35% over the last month. This is positive for crypto brokerages such as Coinbase, as higher crypto asset prices typically bring more active users onto the platform and drive trading volumes, helping revenues. Now, although Coinbase is expected to see sequential declines in its business for Q3 2021, as it reports quarterly results on Tuesday, investors are looking beyond this, considering the recent surge in the crypto market. So is Coinbase stock a buy at current levels of around $354 per share? Coinbase stock currently trades at just about 28x consensus 2021 earnings, which is not a high valuation for a highly profitable and futuristic stock with solid earnings potential. For perspective, Coinbase's net margins stood at an incredible