Bernstein has doubled down on Coinbase’s long-term upside after the exchange rolled out a slate of new products aimed at turning its crypto-focused platform into a broader financial marketplace. The firm reaffirmed a Buy rating and kept a $330 price target following Coinbase’s System Update—though that target is down from an earlier $440 forecast amid the wider crypto downturn.
What Coinbase unveiled
- An SEC-registered AI investment advisor that can access customer portfolio data and account history; users can interact with it via natural-language prompts and get portfolio suggestions directly on the platform.
- Integration for AI agents (including systems such as ChatGPT and Claude) that can connect to Coinbase, accept trading parameters from users, and execute trades on their behalf.
- Expanded access to derivatives, prediction markets, and pre-IPO trading tied to large private tech companies.
- Plans to roll out tokenized stocks that are backed one-for-one by underlying shares.
Bernstein’s take
Bernstein says these moves reinforce its long-term bullish view, pointing to meaningful growth opportunities beyond spot crypto—across stock trading, stablecoin infrastructure, blockchain services, custody, and institutional products. The firm still sees “substantial upside” in Coinbase despite trimming its price target to reflect broader market weakness.
Other Wall Street reactions
- Barclays kept an underweight rating and a $107 price target, arguing that new products such as tokenized equities and AI advisory services won’t necessarily offset weaker crypto trading volumes if market activity remains muted.
- Benchmark reiterated a Buy and set a $270 target; analyst Mark Palmer views the company as evolving beyond a cyclical crypto brokerage into a platform that could attract traditional financial demand.
- Cantor Fitzgerald maintained an Overweight and a $250 target, saying continued product development strengthens Coinbase’s competitive position while warning that crypto price swings could still produce cyclical headwinds.
Market context and near-term price action
Coinbase shares rose about 1.6% on Wednesday to roughly $171.93, after closing 0.2% lower at $169.27 in the previous session. Broader macro and crypto market moves remain relevant: Bitcoin briefly dipped below $65,000 ahead of the Federal Reserve’s policy decision, and stronger-than-expected retail sales data have reinforced expectations that interest rates may stay higher for longer.
Why it matters
Coinbase is explicitly pitching itself as an “Everything Exchange,” blending crypto-native services with products traditionally associated with mainstream finance. The new AI and tradable-product initiatives are designed to diversify revenue streams and reduce reliance on spot crypto trading—an ambition some analysts welcome and others view cautiously until trading volumes and macro conditions improve.
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