TLDR
- Coinbase stock rises 19% to $248 following S&P 500 inclusion news.
- COIN will replace Discover Financial in the index on May 19.
- Oppenheimer raises target to $293; other analysts revise ratings and targets.
- Q1 earnings showed a 24% revenue increase and 26% rise in trading volume.
- COIN acquired Deribit for $2.9B, the largest crypto acquisition to date.
Coinbase Global Inc. (NASDAQ: COIN) shares surged over 19% to $248 as of 11:42 AM EDT following the announcement of its inclusion in the S&P 500 index.
The company will officially join the index on May 19, replacing Discover Financial Services (DFS), which is being acquired by Capital One Financial (COF). Coinbase acknowledged the milestone on social media, calling it a historic moment for the crypto industry. This marks the first time a major U.S. crypto exchange will become part of the S&P 500, a shift that’s expected to attract increased attention from institutional investors.
🚨 $COIN (Coinbase) just got added to the S&P 500
More people will indirectly own crypto — whether they realize it or not.
This isn’t just about a stock.
It’s another step toward mainstream adoption.
Crypto is quietly becoming part of the system. pic.twitter.com/SA0eLWNyUu— Vlad (🐻, 🐻) (@Vlad_Web3) May 12, 2025
Analyst Reactions and Price Target Changes
Oppenheimer analysts reaffirmed their Outperform rating and maintained a $293 price target, calling the S&P 500 inclusion a major catalyst for Coinbase. They anticipate increased buying by index and non-index funds, as well as greater institutional support. Other analysts made adjustments too: Cantor Fitzgerald raised its price target to $253 and kept an Overweight rating, while Citi held its Buy rating and a $270 target. Compass Point upgraded COIN from Sell to Neutral, pointing to potential retail trading and altcoin price growth.
Oppenheimer also reduced a separate price target to $269 citing macroeconomic uncertainties impacting trading volumes. Despite these concerns, most analysts see the index inclusion as a turning point for institutional confidence in crypto-related stocks.
Q1 Earnings and Market Position
Coinbase’s first-quarter results showed a 24% year-over-year revenue increase, driven by a 26% rise in trading volume. Adjusted earnings per share matched expectations, although April and May trading activity showed some slowdown. The company’s 1-year return stands at 22.98%, outperforming the S&P 500’s 12.82%. Over the past three years, COIN has gained 261.50%, though the 5-year return remains negative at -35.60%.
The upcoming earnings date is set between July 30 and August 4, 2025. Investors will watch closely for continued momentum and growth in crypto trading volumes.
Strategic Deribit Acquisition
Coinbase also announced a $2.9 billion acquisition of Deribit, the leading crypto options exchange. The acquisition marks the largest in the industry to date. H.C. Wainwright’s Mike Colonnese maintained a Buy rating on the stock and stated the deal is expected to be immediately accretive. This acquisition solidifies Coinbase’s position in the derivatives market, a growing area in the crypto ecosystem.
🚨Coinbase to buy Deribit for $2.9B ($700M cash, 11M shares) in Crypto's Largest Ever M&A: WSJ pic.twitter.com/s08UP26MQO
— matthew sigel, recovering CFA (@matthew_sigel) May 8, 2025
CEO Brian Armstrong stated that Coinbase aims to be the number one financial services app globally within 5 to 10 years. He believes traditional finance is rapidly adopting crypto and Coinbase is poised to lead that transition. As the company gains S&P 500 status and executes major strategic moves, investor interest is likely to grow.
