What Happened?
Shares of cryptocurrency exchange Coinbase (NASDAQ:COIN) jumped 7.8% in the morning session after stocks rebounded, following a broad-based sell-off the previous day. The Nasdaq was down 4%, while the S&P fell 2.7% as concerns over the ongoing trade war continued to spread. While those concerns haven't exactly disappeared, it's likely some investors looked to take positions in some of the beaten-down stocks, especially some of the high-quality names that got caught up in the sell-off.
Separately, the company reported it was expanding its operations to India after registering with India's Financial Intelligence Unit (FIU). According to the reports, the company plans to offer crypto trading services, which could increase its sales as it taps into a key retail market.
The shares closed the day at $191.54, up 6.8% from previous close.
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What The Market Is Telling Us
Coinbase’s shares are extremely volatile and have had 70 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was a day ago when the stock dropped 10.7% after markets tumbled, extending the weakness from the previous week as concerns over the ongoing trade war continued to spread.
Over the weekend, President Trump fielded questions regarding recession worries on FOX News, calling the market struggle "a period of transition," but that didn't do much to calm investors.
Separately, the company wasn't included in the list of stocks to be added to the S&P 500 which was released on March 7, 2025. Being included in the index means that the stock will likely be held by many mutual funds and ETFs, which could potentially drive up demand for the stock.
Coinbase is down 25.5% since the beginning of the year, and at $191.67 per share, it is trading 44.2% below its 52-week high of $343.62 from December 2024. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $583.86.
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