Coinbase (COIN) shares rose as much as 4.6% after the company outlined a roadmap that included stock trading, AI-powered tools, tokenization and stablecoin infrastructure in its year-end system update.
The stock rose as high as $255.41 in early trading on Thursday and recently traded at $249.48 following the announcement on Wednesday.
JP Morgan’s Kenneth Worthington said the event showed Coinbase expanding its reach by introducing more asset classes and tools to keep users engaged. He highlighted the introduction of US stock trading, perpetual stock futures for non-US users and the Coinbase Advisor product as signals that the company is reshaping its core business.
“Coinbase’s announcements last night highlighted that it is giving its customers far more products to trade,” he wrote Thursday, adding that the expansion “greatly increases” Coinbase’s total addressable market. While revenue details were sparse, Worthington said he sees opportunities in both subscription and transaction-based models. He also noted the rollout of branded stablecoins and expansion of the Base App as important steps towards long-term engagement.
JP Morgan rates Coinbase Overweight with a price target of $244.19.
Read more: Coinbase rolls out stock trading, prediction markets and more in bid to become ‘Everything Exchange’
Owen Lau, an analyst at Clear Street, came away with a similar view, calling the update a coordinated product expansion that marks Coinbase’s transition from a crypto-only exchange to a broader financial platform. He pointed to the addition of stock trading as a notable shift, especially because the company had previously played down the idea. The move could signal future plans to offer tokenized shares, Lau said.
The introduction of an AI-powered advisor also stood out. Lau said it could become a valuable tool to simplify investment decisions and increase customer retention, especially for less experienced users. He noted that direct deposit features and crypto lending could help Coinbase gain traction as a primary financial account, though competing with traditional banks for payday deposits will be a challenge.
Derivatives remain a core part of the growth strategy, Lau wrote, citing the introduction of equity futures with up to 20x leverage and round-the-clock market access. Because derivatives tend to generate higher volume and revenue stability, Lau said they could help reduce Coinbase’s earnings volatility over time. Coinbase announced the $2.9 billion purchase of crypto options exchange Deribit in May.
Clear Street has a Buy rating on Coinbase with a price target of $415.
Citi analysts, led by Peter Christiansen, said the update is a milestone that expands access to new and traditional assets, while building payments, developer tools and tokenization rails that could deepen liquidity over time.
The event underscored Coinbase’s efforts to expand access to a wider range of assets, which “deepens the platform’s competitive moat,” wrote analysts led by Peter Christiansen.
The analysts also pointed to payments and money transfer tools linked to stablecoin USDC and newer x402 payments as steps towards diversifying revenue and enabling new use cases such as agent trading.
Upgrades to Coinbase’s developer tools via CDP, along with efforts to connect onchain functionality with traditional finance through tokenization and on/off ramps, reinforce the company’s ambition to be an “operating system” for onchain activity, the analysts said.
Citi called Coinbase’s “Everything Exchange” plan ambitious and said investors will need solid execution, including clearer disclosure of how it is executed, along with greater regulatory certainty to look past short-term volatility and focus on long-term catalysts.
The bank said it remains convinced the upside is too significant to ignore and continues to see Coinbase’s category leadership strengthen, maintaining its buy rating and $505 price target.
Barclays, on the other hand, has an equilibrium rating on Coinbase with a price target of $291.
