Should buy coinbase stocks tomorrow ?? #coinbase #stocks #investments #personalfinance
LOL @ $100B valuation. Do you think they have a monopoly as a crypto exchange in US at that price?
They do yes, the question is how long they can maintain it. They are already the most trusted and going public adds even more trust. Early advantage is theirs to maintain or lose.
Said no one ever? We are talking average people here. The average person knows the word bitcoin and coinbase. They have never heard of Gemini. Gemini is great but doesn't have nearly the name recognition or simple interface.
Yes definitely... they are monopoly
If you believe in the future of digital currency transactions and management, then yes absolutely. 100B market cap would be nothing if you believe it would be trillion dollars market cap. OR, you can wait for it to become 300B market cap, get more i formation/data/trend and then jump in after couple of quarters execution - either way for multi year exponential growth you don’t need to pick it on day 1, you just need to jump in when you have conviction. Until you have that conviction, answer would be no. So focus on building conviction to buy and not until then. Also, more than the actual stock pick, capital allocation would be critical. With less conviction and hence low capital allocation, you put 5000 that triples will give you 10k gain. With more conviction and hence higher capital allocation, you put 100k that gains 50% will give you 50k. So more than when you enter, how much you enter with matters. 😊
Great analysis. What’s your personal level of conviction? Will you buy now or wait?
Personally I don’t know enough about their business with public information so far. I am allowing myself two quarters to have all analysts inputs come in, hype settle, do more analysis on data and trend and then go in so I know at that time I won’t run to sell or buy in panic or craze. 😊
Don't understand why you would buy coinbase instead of crypto
Why would you buy amazon instead of books?
Cuz Amazon does groceries streaming cloud
what is expected share price?
if you believe coinbase has monopoly in crypto (exchange)... oh man... you must have never ever bought crypto. In that case you def should pass that ipo
anyone who is bullish on crypto should buy crypto lmfao buy coinbase if you think they are doing a great job as an exchange. that said, their earnings are looking phenomenal, projecting basically 7B for the year, which makes 100B valuation look pretty cheap/okay. they were the first player to the market but there's plenty of competition. it'll be interesting to see who wins but the stock should do very well short/medium term
Monopoly? They don’t even support dogecoin
I used coinbase since 2017 .. as a user i don't like the exchange and will flock into the next convenient one that will give me lower fees. I tried: 1) Bittrex -> no bank link 2) Binanace.us -> shady AF 3) Robinhood -> their crypto spread and volume sucks so i wouldn't invest personally in a company I as a user don't plan to use long term. it's so easy for a smaller competitor to disrupt them. they are definitely not a monopoly, just that their competition sucks.
I would be careful assessing this way, they are filling void in market place and are becoming the biggest player with early move - something you want to see in great stocks. Otherwise above would be like saying FB was just another Friendster/MySpace or FB groups was just another yahoo groups or market place is nothing but glorified Craigslist, or who needs Instagram when you have so many photo apps. All of these have low entry bar for service offering by competitor but its execution and monetizing users that differentiates it. Now think of Coinbase - it took Facebook 5 years to generate income while Coinbase at the time of going IPO is already profitable even while growing at phenomenal rate. Revenue grew 139% YoY in 2020, and in Q1 21 compared to last year the revenue grew 9x! Personal experience is very important but then if you only look at value to yourself alone you miss forest for a tree! FB was colossal waste of my time yet I made lot of money off its stock as it made significant money from its user base while Twitter added so much value to me but I never bought its stock as it was a terrible and was below IPO price all these 8 years. To say some random player will just displace them is one opinion but numbers points to a exponential growth company. Though, I commented on another thread that more than the stock pick it’s about conviction, which means for game changers entering on day 1 is not necessary.
I see your point .. but you're missing one thing .. crypto is cyclical. During the bull run the volume is huge and everyone is rushing in. Once this bull run is over (and no, this time it's not different), coinbase will not make the same profits it's making today. You're assuming that they will be able to pull these numbers consistently and I disagree. Most of coinbase revenue is from trading fees and this is not sustainable. I may buy during the next bear market, but I will buy more ETH and not coinbase.
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