Compass Point Cuts Coinbase Price Target Ahead of Expected Stocks, Prediction Market Reveal
Compass Point analysts state that tokenized stocks represent a larger revenue opportunity for Coinbase than prediction markets, estimating potential annual revenues of $230 million from tokenized stocks and $210 million from prediction markets. Despite Coinbase’s plans to launch new products, analysts lowered their price target for COIN to $230, reiterating a “Sell” rating due to exposure to volatile crypto prices and skepticism over new feature earnings. Coinbase shares fell over 5% on Monday and have underperformed Robinhood’s, which surged after launching similar offerings. Compass expects Coinbase to offer tokenized equities directly to U.S. users with economics similar to payment-for-order-flow—no commissions, but rebates from market makers. Prediction market revenue would come primarily from per-contract fees and stablecoin holdings on the platform. Coinbase currently earns the vast majority of USDC stablecoin revenue when users hold it on the platform. Recent developments include industry partnerships and Coinbase’s involvement in initiatives to clarify prediction market regulations.
