When it comes to cryptocurrencies, Coinbase Global (COIN) is the leader in this business. What are your thoughts on Coinbase’s share price after its famous IPO? Should you buy or sell on the current crazy stock market?
Coinbase IPO stock
After rising 72% to $429.54 on its first day of trading, Coinbase shares closed up 31.3 percent at $328.28, valuing the company at $87.3 billion.
Many analysts say Coinbase’s IPO will bring more recognition to the cryptocurrency industry.
Wedbush analyst Dan Ives said in a client note that the Coinbase IPO has the potential to be a historic moment for the industry.
How does Coinbase make money?
Coinbase is the largest cryptocurrency exchange in the United States. You can trade according to CoinDesk, Bitcoin, the most valuable digital asset, has risen only 2% this year after a sharp drop in recent months. While the value of Ether is expected to quadruple by 2021.
Coinbase generates revenue by charging fees for deposits and trading. By 2020, approximately 90% of the company’s revenue will come from services such as transaction fees and escrow.
Fundamental Analysis of Coinbase Stocks: Huge Profits and Sales Growth
A few days before the public launch, on April 6, Coinbase announced earnings forecasts for the first quarter ended March 31 and the full year ending December 31, 2021. The company expects authenticated users. 56 million online and $223 billion in assets, accounting for 11.3% of the digital asset market.
On May 12, Coinbase reported slightly lower-than-expected first-quarter results, total revenue of $1.81 billion and earnings per share of $3.05. Wall Street forecast Coinbase earned $3.07 per share on revenue of $1.81 billion dollars. Revenue increased by 2,350 percent and sales 845% compared to the same period last year.
Coinbase reported second-quarter results on August 10, with revenue of $6.42 per share on revenue of $2.22 billion. The company warned that trading volumes in the third quarter will be lower than in the second quarter.
Technical Analysis Coin Stocks
Coin’s share price has dropped more than 40% from its post-IPO high. The recent drop in share price has prevented the company from laying the groundwork for an IPO. Look at the new base to create a starting point to buy.
According to IBD Stock Review, Coinbase shares have a moderate rating of 66 out of 99 on the IBD Composite Rating. The Composite Rating makes it easy for investors to assess the fundamentals and technical characteristics of a stock. New stocks tend to have low overall IBD ratings.
Coinbase exchange news
Mizuho analyst Dan Drew began reporting on the stock on April 22 with a neutral rating and a $285 target price,” Drew said. Even though PayPal’s cryptocurrency trading products and Cash App serve as an engagement tool, Coinbases’ cryptocurrency trading products are its main source of revenue and profits.”
Goldman Sachs began reporting on May 24 with a “buy” rating and a price target of $306 per share. Goldman Sachs analyst Will Nance believes Coinbase is the best way to understand the cryptocurrency ecosystem.
JPMorgan Chase began reporting on Coinbase on May 25, giving it a “hold” rating and a price target of $371, resulting in a 7.6% increase in Coinbase’s share price.
Canaccord Genuity began reporting on the stock with a “Buy” rating and a $285 price target on June 16.
Is Coinbase Stock a Good Investment?
As Coindesk reports, Coinbase shares fell nearly 1% Tuesday as Bitcoin hovered around $49,300 in early trading.
So, you should not buy now because the new purchase price has not yet been reached which is about 40% lower than the previous high.
See a list of IBD stocks like “The Big Picture” to learn more about the best stocks near the buy zone. Or check out IBD The Big Picture’s daily subscription analysis for current stock market trends.
