Argus Downgrades Coinbase (COIN) to Hold Due to Significant Valuation Issue, Trading at 39x Forward Earnings

Coinbase Global Inc. (NASDAQ:COIN) is one of the most promising stocks with huge upside potential. On November 25, Argus analyst Kevin Heal downgraded Coinbase to Hold from Buy with no price target. The company stands as the top cryptocurrency trading platform, and its dollar-backed stablecoin, USDC (which is the world’s second-largest), is maintaining strong growth. However, Heal noted a significant valuation issue: the stock is currently trading at 39x its expected forward earnings, substantially higher than the 24x to 27x multiples observed for competing exchanges.

In other news, the company’s Q3 2025 earnings report disclosed that Coinbase Global experienced a total trading volume of $295 billion in the quarter, which was sequentially up 24%. Consumer trading volume specifically grew 37% to $59 billion, outperforming the US spot markets.

The company reported a total revenue of $1.9 billion in Q3, which was a sequential rise of 25%. Net income stood at $433 million, fueled by both transaction and subscription revenues. Transaction revenue reached $1.0 billion, up 37%, with consumer transaction revenue at $844 million, up 30%. Furthermore, the company successfully grew its Subscription and Services revenue to $747 million, an increase of 14%, contributing to overall financial growth.

Coinbase Global Inc. (NASDAQ:COIN) operates a platform for crypto assets in the US and internationally.

While we acknowledge the potential of COIN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.