Should You Buy Coinbase Stock?

There are some reasons to be cautious about Coinbase stock. It’s a speculative asset like an initial public offering (IPO). The price-to-earnings ratio is around 20, which makes it very cheap, but analysts have warned that its earnings are set to fall next year due to frenzied trading in the second quarter of 2021. The price of Bitcoin is at an all-time high, and investors may be hesitant to purchase it, given its volatile nature.

The company’s recent announcements haven’t boosted investor confidence, and Coinbase stock is still down more than 30% since it went public. The S&P 500 fell 1% last week, and the broader crypto market is facing a slump. On April 14, Bitcoin and Ethereum reached all-time highs, but both failed to reach new records. Coinbase is filling a gap at a lower price may provide bullish investors with some peace of mind, but it doesn’t necessarily indicate a reversal.

The recent price decline of Bitcoin has weighed on Coinbase stock. Although the store hasn’t tracked the surge in Bitcoin, it’s not too far off from that. The bitcoin price has dropped from $62,000 in mid-April to $33,000 on Wednesday. While the company may be trying to gain investor confidence through the stock, the price isn’t high enough to spur a significant jump in its inventory.

However, investors should be wary of a sequential sell-off in Coinbase. The company’s sequential declines could lead investors to look for other companies to buy. A better way to invest is through an investment advisory firm, such as a reputable one. While this approach may not yield results, it’s an excellent way to track changes in the crypto market. A professional investment advisor can advise you on which stocks to purchase.

In October, Coinbase announced the launch of a Coinbase NFT marketplace, allowing users to mint their non-fungible tokens. The company also announced a partnership with Facebook for its Novi pilot, a new way to send and receive money internationally. Its IPO was a direct listing so early investors could sell their shares with no lockup period. Further, the stock is trading at less than half of its IPO price.

Since the IPO, Coinbase’s stock has fallen 6%. The stock reached a high of $328 per share on its listing. Despite this, it’s currently priced at $281, down 15% from its peak. It’s a good time to invest in Coinbase if you have any cryptocurrency-related investments. It’s possible to earn up to 15% in just one day, which is an incredible return for just a few cents.

The price of Bitcoin has been a significant factor in Coinbase’s growth. As the cryptocurrency market grows, Coinbase stock could become an even better investment if it increases its userbase. Meanwhile, the SEC has banned the sale of Bitcoin in China, which could hamper the company’s growth. As the price of Bitcoin climbs, the stock’s price has also increased, indicating that it has a high potential to grow.

Coinbase stock has gained 11% in the last week and outperformed the S&P 500. This rally has been attributed to the rebound in Bitcoin prices. The digital currency rose 20% during the summer after a big sell-off. As of Monday, Bitcoin is trading at $57,000, up almost 30% in a month. Higher prices of cryptos mean more people will be able to access Coinbase’s platform, which will boost revenue.

The company has faced a series of challenges over the past year. Its IPO was an inauspicious event, but the emergence of the crypto industry provided a robust platform and a great deal of opportunity for investors. The downside of this stock is that it’s a risky asset so that the price could go down. Its share price was only 10% of its expected revenues in 2018; it’s worth more than 50 times next year.

Coinbase stock is at an all-time low. It’s trading at 28x of its projected 2020 earnings. The company’s quarterly revenue has risen by over 60% over the past year. Despite the rocky start, the stock has remained relatively stable since 5/24/2021. With that, the company has positioned itself for another IPO in 2022. If the company can avoid this setback, investors should consider buying the stock now.

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