Coinbase Stock Rallies on ‘Emophatic’ Response to NFT Marketplace By

© Reuters

By Sam Boughedda — Following the announcement that it is creating an NFT marketplace, Coinbase (NASDAQ:) stock has rallied as customers rushed to sign up, and analysts responded with positive calls.

After posting a 1% decline on Wednesday, Coinbase shares have turned around, gaining 5.7% to just over $260.

This morning, in a Twitter (NYSE:) post, Coinbase CEO Brian Armstrong said, “Over 1M people have signed up for Coinbase NFT since we launched yesterday.”

Meanwhile, it was also reported that Sanchan Saxena, VP of Product, Ecosystem at Coinbase, said in a blogpost that the waitlist for the upcoming NFT marketplace “appears to have nearly 1.5M sign-ups.”

The news has buoyed investors and analysts. Mark Palmer, an analyst at BTIG, said that he was bullish on Coinbase after an “emphatic reaction” to the NFT marketplace. Palmer maintains that as the company diversifies and becomes less dependent on transaction fees, the stock would rise to reflect its enhanced stability. The analyst currently has a Buy rating and a $500 price target on the shares.

Palmer wasn’t the only analyst encouraged by the NFT Marketplace response, with JMP Securities analyst Devin Ryan raising the firm’s price target on Coinbase to $330 from $300, keeping an outperform rating. Ryan said the marketplace represents a sensible extension of the company’s business and possibly a tremendous long-term opportunity.

Coinbase states on its waitlist page that Coinbase NFT will initially be available to U.S. users with future expansion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.