A leading financial institution has significantly raised its price target for Coinbase stock, comparing the crypto giant to the e-commerce and cloud computing behemoth, Amazon.
Bernstein’s Bold Price Target Update
Analyst Gautam Chhugani from Bernstein, who holds a top five-star rating on TipRanks, has issued a dramatically increased price target for Coinbase shares. The new target is $510, up substantially from the previous $310, making it the highest on Wall Street for the company.
Chhugani described Coinbase as "the most misunderstood company in the entire crypto sector" in a client memo. He boldly declared the cryptocurrency platform the "Amazon of crypto financial services."
Following this optimistic analysis, Coinbase's stock price experienced a strong surge, breaking through its previous all-time high from November 2021 and trading above $360.
What is Coinbase?
Coinbase is a U.S.-based cryptocurrency exchange and digital asset service provider. It offers a platform for buying, selling, storing, and transferring cryptocurrencies like Bitcoin and Ethereum. As one of the largest and most well-known players in the industry, its services are used by retail and institutional clients worldwide.
The company has played a central role in the development of crypto markets by making digital asset trading accessible and secure for a broad audience. It operates in a strictly regulated environment and is listed on a U.S. stock exchange, which enhances its transparency and credibility.
Beyond traditional trading, Coinbase's service portfolio includes staking services, stablecoin management, and institutional custody solutions. This makes it a critical bridge between the traditional financial world and the crypto economy.
The “Amazon of Crypto” Thesis
The analyst's comparison stems from Coinbase's evolution from a simple trading exchange into a diversified financial giant. Similar to how Amazon expanded from an online bookstore into a global e-commerce and cloud services leader, Coinbase has significantly broadened its service offerings.
Today, the company provides services ranging from retail and institutional trading to custody, staking, stablecoins, derivatives, and blockchain infrastructure—particularly through its own Ethereum Layer 2 network, Base.
Bernstein's analysis and raised price target highlight this transformation. The bank's rationale for the high target includes Coinbase's strengthening growth in non-trading revenue sources like staking, stablecoins, and blockchain services. The company's derivatives business, especially perpetual futures, has also grown significantly.
Its position as the largest custodian for U.S. Bitcoin ETFs and the primary distributor for Circle's USDC stablecoin further solidifies Coinbase's role as a universal bank for crypto.
Financial results support this view. Coinbase reported $2 billion in revenue for the first quarter of 2025. Notably, non-trading revenue accounted for 42% of total revenue in 2024, up from just 14% in 2020.
Building a Moat Against Competitors
The company's Base blockchain, which operates on Ethereum, already hosts significant tokenization pilots and generates high-margin revenue—much like Amazon Web Services (AWS) became Amazon's profit engine.
Although some on Wall Street remain skeptical, Coinbase's market share has remained strong even as competition intensifies. Traditional brokers are only just entering the crypto markets, and Bernstein estimates it will take them months to offer a product range as comprehensive as Coinbase's. This is a significant advantage in fast-moving digital markets.
A clarifying regulatory environment also supports the company's position. The passage of legislation like the anticipated CLARITY Act in the U.S. provides a more stable regulatory foundation, which benefits compliant and established operators like Coinbase.
The company's international expansion, such as its license to operate in the EU under the MiCA regulations, strengthens its position as a global leader.
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Key Competitive Advantages
Coinbase's competitive edge is built on several foundational pillars:
- Trust and Compliance: Its strong security infrastructure and strict adherence to regulations distinguish it from many global competitors. This creates a structural advantage, as the company is trusted more than less-regulated operators, and its brand is particularly strong in the U.S. market.
- Market Leadership: It holds the largest assets under custody among crypto exchanges, enabling the liquidity and efficient pricing required by institutional investors.
- Security: The company has invested significantly in cybersecurity and maintains a high rate of cold storage—98% of assets are held offline in devices disconnected from the internet, which is well above the industry average.
Frequently Asked Questions
What does it mean that Coinbase is the "Amazon of crypto"?
This analogy refers to Coinbase's transformation from a single-service online exchange into a vast, diversified ecosystem of crypto financial services, mirroring Amazon's expansion from bookselling into a global retail and tech infrastructure giant.
Why did Bernstein raise Coinbase's price target so significantly?
The raise reflects strong conviction in Coinbase's successful expansion into high-margin, non-trading revenue streams like staking, stablecoins, and blockchain services, which now contribute nearly half of its total revenue.
Is Coinbase a good long-term investment?
Analysts pointing to its strong competitive moat, leadership in a growing market, and diversified business model view it favorably. However, as with any investment, it carries risk and is subject to market volatility.
How does Coinbase make money besides trading fees?
A significant portion of its revenue now comes from "subscription and services," which includes income from USDC distributions, staking rewards, institutional custody fees, and earnings from its Base blockchain.
What is Cold Storage in crypto?
Cold storage refers to keeping cryptocurrency reserves in offline wallets that are not connected to the internet. This is a critical security measure to protect assets from online hacks, and Coinbase stores 98% of client assets this way.
How is regulation affecting Coinbase?
Clearer regulation, particularly in the U.S. and EU, is seen as a net positive for large, compliant players like Coinbase. It reduces uncertainty and creates barriers to entry for less-regulated competitors.