Coinbase Global Inc. is advancing its strategy to become an "everything exchange" with the launch of an AI-powered investment advisor and fully backed tokenized stocks. Announced at the "System Update – Take Control" event in New York City, these offerings aim to diversify revenue streams beyond cryptocurrency trading. The AI advisor provides personalized guidance by analyzing a user's portfolios and account history, while tokenized stocks allow for on-chain ownership of equities backed 1:1 by underlying shares.

New Product Offerings

The event highlighted several key product launches designed to expand Coinbase's utility:

• AI Advisor: A zero-fee investment advisor with knowledge of a customer's entire portfolio.
• Tokenized Stocks: Fully on-chain stock ownership, backed 1:1 by the underlying stock, tradable on DeFi and transferable to other wallets.
• Pre-IPO Perps: Offers exposure to companies before their IPO, targeting retail appetite ahead of an AI IPO wave.
• Thematic Stock Indices: Four indices including AI10 (AI stocks), Defense10 (defense and aerospace), China10 (select Chinese equities), and Tech100 (100 US tech stocks).
• Prediction Markets: Introduction of hundreds of new binary crypto markets and combos allowing multiple predictions in a single contract.

Analyst Perspectives

Analysts responded positively to the diversification efforts. Needham analyst John Todaro maintained a Buy rating with a price target of $220, noting that Coinbase is "pushing more into equities, options, AI and prediction markets." He suggested that continued diversification should blunt the company's revenue exposure to crypto.

BTIG analyst Andrew Harte reiterated a Buy rating and a price target of $280. Harte identified tokenized equities as the highlight of the event, stating that Coinbase is working on creating "a leading digital assets platform with real world utility." He also observed that crypto trading volumes had picked up in the first half of June.

Stock Performance and Availability

Despite the product launches, Coinbase shares experienced minor volatility. The stock fell 0.45% in after-hours trading after closing 0.21% lower at $169.27 during the regular session on Tuesday. At the time of publication on Wednesday, shares had risen by 0.21% to $169.63. According to Benzinga’s Edge Stock Rankings, COIN stock underperformed across short-, medium-, and long-term horizons with a very low Momentum score.

Coinbase has issued a caution regarding the AI tool, stating that outputs may be "inaccurate or incomplete" and warning users against relying on the advisor as the sole source of financial information.

Cantor Fitzgerald analyst Ramsey El-Assal has reiterated an Overweight rating on Coinbase Global. The firm maintains a price target of $250 for the stock.

The rating and price target were issued by Cantor Fitzgerald. Coinbase Global trades on the NASDAQ under the ticker symbol COIN.