Coinbase Stock Looking Better After Price Drop, Says William Blair

Investment firm says Coinbase shares are now less risky after falling 26% from March highs, while USDC growth helps outlook.

Coinbase stock might be a better deal now after its recent price drop, according to investment firm William Blair.

The cryptocurrency exchange's shares fell about 26% from their March high points, but analysts Andrew Jeffrey and Adib Choudhury say this actually makes the stock less risky for investors. When they say "de-risked," they mean the stock price has already fallen to reflect the bad news, so there's less chance of further big drops.

Here's what's happening: • Coinbase shares are still down 60% from their peak of $445 in July 2025 • Trading volumes (how much crypto people are buying and selling) have been lower than expected • The company will report its financial results on May 7

Despite the challenges, William Blair sees positive signs for Coinbase: • The company is expanding beyond just crypto trading into stocks and prediction markets • USDC (a digital dollar that Coinbase helps manage) is growing and taking market share from competitors • Lower expectations mean the stock might not fall much more even if results are weak

The analysts believe that USDC's growth is particularly important. USDC is a "stablecoin" (a cryptocurrency that stays equal to $1) that Coinbase operates with a company called Circle. As more people use USDC instead of competitor Tether's USDT, both Coinbase and Circle benefit from the fees.

The bottom line: While Coinbase faces headwinds from lower trading activity, William Blair thinks the worst may be over for the stock price, and the company's expanding services could drive future growth.

This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/397233/coinbase-shares-de-risked-selloff-usdc-growth-circle-outlook-william-blair?utm_source=rss&utm_medium=rss