Coinbase Stock Surges 7% as Goldman Sachs Upgrades Rating and Raises Price Target – Here’s Why

• Why Did Goldman Sachs Upgrade Coinbase?
• How Is Coinbase Expanding Beyond Trading?
• What’s Happening with Coinbase in Argentina?
• Why Does Market Sentiment Favor Coinbase Now?
• What’s Next for Coinbase Investors?
• FAQs: Coinbase’s Rally and Strategy

Coinbase (COIN) shares jumped 7% today after Goldman Sachs upgraded its rating, citing the crypto exchange’s shift toward stable revenue streams and infrastructure growth. Analyst James Yaro highlighted Coinbase’s expanding subscription services, market dominance, and resilient business model as key drivers. Meanwhile, the company scales back in Argentina but keeps long-term regional ambitions. Here’s a deep dive into the catalysts behind the rally.

Why Did Goldman Sachs Upgrade Coinbase?

Goldman Sachs analyst James Yaro sees Coinbase transitioning from a cyclical trading platform to a structural growth story. He upgraded the stock to "Buy" and raised the price target, emphasizing its diversified revenue streams. "Coinbase’s brand scale and reputation continue to drive above-average revenue growth and market share gains," Yaro noted. The analyst pointed out that subscription and services—like custody, staking, and institutional trading—now make up ~40% of revenue, up from under 5% in 2020. These segments are less tied to volatile crypto trading volumes, smoothing earnings fluctuations.

How Is Coinbase Expanding Beyond Trading?

Coinbase is no longer just a crypto trading hub. Its infrastructure services, including Base (its ethereum Layer 2 network) and institutional offerings, are gaining traction. Yaro projects a 13% annual growth rate for these segments through 2027. "We’re bullish on COIN’s exposure to crypto infrastructure via subscriptions," he wrote. The BTCC research team adds that Coinbase’s pivot mirrors broader industry trends, where exchanges diversify to survive regulatory and market cycles.

What’s Happening with Coinbase in Argentina?

Coinbase is pausing peso and USDC support in Argentina starting January 31, calling it a "voluntary timeout." Users won’t be able to buy/sell USDC with pesos or withdraw pesos to banks, but crypto-to-crypto trades remain active. The company entered Argentina in 2025 after securing approval from the CNV (local securities regulator), targeting a crypto-savvy population grappling with inflation. Despite the pullback, Coinbase maintains ties with local partners like Ripio (which launched the peso-pegged stablecoin wARS) and plans to relaunch services later.

Why Does Market Sentiment Favor Coinbase Now?

Beyond Goldman’s upgrade, Coinbase benefits from bitcoin ETF momentum and its role as a custody partner for major funds. TradingView data shows COIN’s relative strength index (RSI) rebounding from oversold levels, signaling technical bullishness. However, skeptics warn about regulatory risks—especially if the SEC escalates its crypto crackdown. "Coinbase’s legal battles could still derail its infrastructure push," admits one hedge fund manager.

What’s Next for Coinbase Investors?

Yaro’s revised $345 price target implies ~20% upside from current levels. Key milestones include:

• Q1 2026 Earnings: Subscription revenue growth will be scrutinized.
• Base Network Adoption: More developers migrating to Base could boost fee income.
• Global Expansion: Watch for re-entry in Latin America and Asia.

This article does not constitute investment advice. Data sources: CoinMarketCap, TradingView.

FAQs: Coinbase’s Rally and Strategy

What triggered Coinbase’s stock surge?

Goldman Sachs’ upgrade and raised price target, citing stronger subscription revenue and infrastructure growth.

Is Coinbase leaving Argentina permanently?

No. It’s a temporary pause for service upgrades, with crypto-crypto trading still available.

How significant are Coinbase’s non-trading revenues?

They’ve grown from 5% to 40% of total revenue since 2020, reducing reliance on volatile trading fees.