TLDR
- Jim Cramer said investors should buy Bitcoin rather than Coinbase stock, calling it a “cleaner” trade with less competition risk
- Coinbase missed Q4 estimates, reporting EPS of $0.66 vs. $0.83 expected, with revenue down 21.6% year-over-year
- Jefferies Financial Group cut its Coinbase stake by 95.2% in Q3, reducing its holding to just 3,017 shares
- CEO Brian Armstrong sold 40,000 shares in January for roughly $9.96 million; insiders sold over $84 million worth in Q4
- The stock sits at $193.35, well below its 52-week high of $444.64, with analysts holding a consensus “Hold” rating and a target of $270.51
Coinbase Global (COIN) is under pressure from multiple directions right now. Weak earnings, falling analyst targets, heavy insider selling, and now one of TV’s most-watched market commentators telling viewers to skip the stock altogether.
On a recent episode of Mad Money, Jim Cramer weighed in on Coinbase after a caller asked about the stock. His take was blunt: just buy Bitcoin instead.
“What I would suggest you do is just buy Bitcoin. It’s cleaner. It has less to do with whether there’s competition, say from BlackRock or from Fidelity,” Cramer said.
It wasn’t Cramer’s first shot at the stock. Back on February 6, he said he didn’t “want to touch” Coinbase, pointing to the spread of crypto into mainstream platforms like Robinhood as a threat to its edge.
Earnings Miss Added to the Pressure
Coinbase reported Q4 earnings on February 12, and the numbers disappointed. The company posted EPS of $0.66, missing the consensus estimate of $0.83 by $0.17. Revenue came in at $1.78 billion against a $1.86 billion estimate.
That’s also a 21.6% drop in revenue compared to the same quarter last year, when EPS was $4.68. Net margin stands at 17.55% and return on equity at 8.68%.
Analysts responded by cutting their price targets. JPMorgan dropped its target from $399 to $290, though it held an “overweight” rating. Rosenblatt cut its target from $325 to $240. Zacks downgraded the stock to a “strong sell.”
The current consensus sits at “Hold,” with an average price target of $270.51. Out of 33 analysts tracked, 19 rate it a Buy, 11 a Hold, and 3 a Sell.
Institutional Selling and Insider Activity
Jefferies Financial Group made a sharp exit. The firm cut its Coinbase stake by 95.2% in Q3, selling 60,248 shares and retaining just 3,017. Its remaining position was worth around $1.02 million at the time of filing.
Insider selling has also been heavy. CEO Brian Armstrong sold 40,000 shares on January 5 at an average price of $248.96, netting nearly $10 million. Director Frederick Ehrsam III sold 2,750 shares on January 14 at $260.09. Total insider sales in the last quarter came to 476,920 shares worth roughly $84.2 million.
Insiders still own 16.56% of the company, and institutional investors hold 68.84%.
COIN opened at $193.35 on Friday. Its 52-week range runs from $139.36 to $444.64. The 50-day moving average is $199.36, and the 200-day is $266.20.
On the product side, Coinbase has been active. It launched regulated crypto futures across 26 European countries and rolled out Agentic Wallets for AI agents. Its Chief Policy Officer also published recommendations on U.S. stablecoin regulation. Short interest in the stock has reportedly risen in March, adding another layer of bearish sentiment to the picture.
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