What Happened?
Shares of blockchain infrastructure company Coinbase (NASDAQ:COIN) jumped 3% in the morning session after the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
Investors were also encouraged by several positive reports that painted a picture of a resilient consumer. One key report revealed that shoppers increased their spending at U.S. retailers more than economists had anticipated. Precisely, retail sales increased 0.6% from May, surpassing the 0.2% estimate. This robust consumer spending is a crucial pillar supporting the economy.
Adding to the positive sentiment, the latest data on unemployment claims showed a decrease in the number of workers applying for benefits, signaling that layoffs remain limited and the job market is steady. This combination of strong earnings reports, retail sales, and a solid labor market suggests the economy is navigating challenges successfully.
After the initial pop the shares cooled down to $408.70, up 2.7% from previous close.
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What Is The Market Telling Us
Coinbase’s shares are extremely volatile and have had 67 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 3.1% on the news that momentum improved in the crypto space with strong uptrend in Bitcoin and Ethereum.
Bitcoin recently broke past $120,000 and Ethereum showed significant gains. This positive market sentiment was amplified by the ongoing "Crypto Week" in the US House of Representatives, where pro-crypto legislation, including stablecoin bills and a ban on central bank digital currencies were debated. The Trump administration's overtly pro-crypto stance, coupled with continued institutional investment and the success of Bitcoin and upcoming Ethereum ETFs, further bolstered investor confidence.
Coinbase is up 58.9% since the beginning of the year, and at $408.70 per share, has set a new 52-week high. Investors who bought $1,000 worth of Coinbase’s shares at the IPO in April 2021 would now be looking at an investment worth $1,245.
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