Coinbase (COIN) shares rallied more than 20% on Tuesday following news that the crypto trading platform will replace Discover Financial Services (DFS) to become a part of the S&P 500 Index ($SPX) on May 19.  

The announcement arrives only days after COIN reported a 24% year-over-year increase in its Q1 revenue to $2.03 billion, which nonetheless came in shy of $2.12 billion that experts had forecast.

Including today’s rally, Coinbase stock is up more than 75% versus its year-to-date low. 

Here’s What S&P 500 Inclusion Means for Coinbase Stock

Investors are cheering COIN stock this morning primarily because inclusion in the S&P 500 Index often brings buying pressure that tends to result in a short-term increase in the company’s share price.   

Now that the crypto stock is joining the benchmark index, institutional investors, including pension funds and exchange-traded funds, will have it on their radars. 

In fact, funds that track the S&P 500 will actually be “required” to buy Coinbase shares now, which will likely translate to increased demand, potentially leading to a stock price rally. 

All in all, becoming a part of the benchmark index signals COIN has met strict financial as well as operational criteria, making it more attractive to conventional investors. 

Oppenheimer Says COIN Shares Are Headed for $293

News of Coinbase’s upcoming inclusion in the S&P 500 Index also made Oppenheimer analyst Owen Lau issue a bullish note in the company’s favor on Tuesday. 

According to Lau, “lack of deep institutional ownership was a bear thesis for COIN,” but now that it’s joining the benchmark index, institutional interest will likely be the very tailwind that drives the company’s share price up in the back half of 2025. 

The investment firm raised its price target on Coinbase stock this morning to $293, which signals potential upside of nearly another 20% from current levels. 

Coinbase Is a ‘Buy’-Rated Stock in 2025

Note that Oppenheimer is not alone in keeping bullish on COIN shares. The consensus rating on the crypto stock also currently sits at “Moderate Buy.” 

Heading into Tuesday, analysts had a mean target of about $254 on Coinbase, but they may choose to upwardly revise it in the coming weeks due to the S&P 500 news.