Coinbase's Stock Rally Looks Overheated

Coinbase investors might be getting ahead of themselves. Coinbase shares, which have been on a tear lately, are now trading at a valuation not seen since fall 2021. 

Coinbase is currently trading at 8.3 times its next 12 months expected revenue (all data courtesy of Koyfin). The last time it consistently traded at that rich a multiple was November 2021—the same month bitcoin hit its all-time peak. But that was a different era! Crypto trading volumes had been skyrocketing and the collapse of FTX was still a year away.