Coinbase Stock Price Drops, But Revenue Growth Suggests Buying Opportunity

Coinbase, the blockchain infrastructure company, has seen its stock price decline by 55% over the past six months, falling to $174.10 per share. Despite this drawdown, the company's revenue growth and free cash flow margin suggest it may be a buying opportunity.

The company's revenue grew at an incredible 41.2% compounded annual growth rate over the last five years, beating the average consumer internet company. This growth is driven by its lucrative business model and cost-effective customer acquisition strategy, which enables it to invest in new products rather than sales and marketing.

However, Coinbase's EPS trend is declining, with a drop of 36% over the last four years. While this may indicate changing secular trends and preferences, it does not necessarily mean that the company's stock price will continue to decline.