Coinbase had an exceedingly choppy ride on its first day of trading on the Nasdaq — but if analysts are to be believed, the stock has plenty of room to run.
After being given a reference price of $250 a share, COIN opened at $381 on Wednesday — an instant premium of 50%. The stock hit intraday highs of $429.54 before cooling slightly and closing the session at $328.28.
Pre-market trading looked exceedingly promising for Coinbase on Thursday too. At one point, the stock was changing hands for $367 — 11% higher than the price at the close.
Looking ahead, there appears to be no shortage of optimism on Wall Street — with BTIG awarding COIN with a Buy rating and a price target of $500. In a research note, BTIG told investors:
“We believe COIN, the most popular consumer-facing cryptocurrency exchange in the U.S., is positioned to be a primary beneficiary of the increased adoption of Bitcoin and other digital assets as it continues to scale in the U.S. and internationally.”
MoffettNathanson is even more bullish, setting a price target of $600.
Ark Invest Buys Big
One of the most notable investors in Coinbase has been Ark Invest, headed up by renowned stockpicker Cathie Wood. It’s been revealed that Ark snapped up 749,205 shares in the exchange on the first day of trading — exposure that’s worth a cool $250 million.
Speaking to Bloomberg, she said there will be some excellent opportunities to purchase COIN on dips — fluctuations that may very well end up coinciding with falls in the value of Bitcoin and other digital assets.
After reaching a record high of $64,863.10 shortly before Coinbase’s stock went public, Bitcoin appeared to lose its footing late on Wednesday, tumbling as low as $61,554.80 as trading on Wall Street wrapped up for the night.