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Coinbase Alphabet tie-up: AMZN stock slides as GOOGL crypto payments deal with COIN dumps cloud rival AWS

By Raphael Sanis

15:16, 11 October 2022

Amazon's stock price
Amazon’s stock price has dropped after Coinbase decided to move its services to Google Cloud – Photo: Shutterstock

The cryptocurrency exchange Coinbase (COIN) and Google Cloud (GOOGL) have announced a major long-term partnership to enhance the Web 3.0 presence of both organisations.

However, as part of the partnership, Coinbase will halt its use of Google Cloud’s competitor, Amazon Web Services (AWS).

Amazon's (AMZN) stock suffered when the market opened on  11 October.


AMZN abandoned

Jim Migdal, the vice-president of business development at Coinbase, said the exchange was moving its data-related apps from Amazon to Google, according to CNBC.

Coinbase has used AWS for its cloud computing needs since 2014. A former Coinbase director, Rob Witoff, who no longer works at the company, previously said: “In three years, our bitcoin wallet base has grown from zero to more than three million. We’ve been able to drive that growth by providing a fast, global wallet service, which would not be possible without AWS.”

The Coinbase team chose Google for its security, open-source projects, and “robustness of their compute platform”, according to a statement from the exchange.

The news comes after a Coinbase documentary on Amazon Prime, which launched on Friday 7 October.


0.14 Price
-2.150% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872


3,451.53 Price
-1.410% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00


180.02 Price
-1.900% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652


67,715.80 Price
-0.130% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

AMZN’s stock suffered a 2.9 per cent drop. It closed at $113.72 on the 10 October and opened today at $113.62. It then fell to a low of $110.33, according to’s trading platform.

The Google partnership details

With a focus on Web 3.0, there were a number of different angles announced as part of this “long-term, strategic partnership”.

Coinbase’s commerce platform will enable Google Cloud to start allowing clients to pay for their services with “select cryptocurrencies”. Coinbase Commerce currently supports 10 different cryptocurrencies, including bitcoin, ethereum, and dogecoin. Google will first make this option available to those in the Web 3.0 industry.

Brian Armstrong, co-founder and CEO of Coinbase, said: "We are excited Google Cloud has selected Coinbase to help bring Web3 to a new set of users and provide powerful solutions to developers.”

Meanwhile, Coinbase will be able to utilise Google’s infrastructure to “build advanced exchange and data services”. It is hoping to leverage Google’s network to efficiently process blockchain data and give customers improved crypto insights.

Thomas Kurian, CEO of Google Cloud, said: "Our focus is making it frictionless for all customers to take advantage of our scalability, reliability, security, and data services, so they can focus on innovation in the Web3 space."

Coinbase’s stock saw a large spike after the announcement. After closing at $66.92 the previous day, COIN jumped to a high of $72.92 on 11 October.

It has since corrected slightly and was hovering around the $68 mark, at the time of writing.

Markets in this article

Alphabet Inc - A (Extended Hours)
182.30 USD
4.41 +2.480%
AMZN Inc (Extended Hours)
183.30 USD
0.4 +0.220%
Coinbase Global Inc (Extended Hours)
265.15 USD
8.18 +3.190%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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