Buy This Stock as Bitcoin Crashes
Coinbase is a Buy, But Wait for Earnings.
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2022-05-07 11:20

Crypto Markets Are Tanking
Knowing how volatile the crypto markets are, this downward trend that Bitcoin is currently on could be over by the time you read this article. But the benchmark crypto is currently on a three-day slide where it has lost 12% and is fast approaching its lowest price levels of 2022. It’s not just Bitcoin that is on the decline as the total crypto market has fallen to $1.65 trillion during this recent skid. Other major coins like Solana, Terra, and Avalanche are all down by double digits this past week.
Buy This Stock as Bitcoin Crashes
Coinbase is at its Lowest Point
The FUD has been rampant in the crypto industry as many traders have been liquidated or have given up entirely until the markets stabilize. Remember, we always need to be greedy when others are fearful. This is not like previous crypto bear markets where the chances of everything going to zero was never off the table. Now, with institutional adoption and mainstream use cases, we know that cryptos are here to stay.

This is why this week I am recommending you take a long hard look at Coinbase ($42.81|3.76%) stock. Things couldn’t be more bearish for Coinbase right now. Bitcoin is crashing and more than $700 million in the token was liquidated from its site earlier this week. Coinbase has always traded alongside the crypto markets, rather than on its own fundamentals. This might be bad for people who have been holding the stock, considering the price of Bitcoin peaked on the same day that Coinbase went public.

But for investors who are looking to get into Coinbase now, there might be no better time. The platform launched its long-awaited NFT marketplace this week and it debuted to little fanfare. I mean zero. There were 150 people who signed up for it on the first day signalling that NFT traders are likely to stick with existing platforms like OpenSea. This was going to be a major catalyst for Coinbase, but unfortunately, the launch fell flat on its face. Who would have thought people wouldn’t be as interested in NFTs as we are about to enter a recession.

Coinbase is a Buy, But Wait for Earnings
Coinbase has beat Wall Street estimates twice and missed twice so far as a public company. This likely has to do with the ebb and flow of the crypto market. Investors will be looking for Coinbase to have increased its user base and monthly active users or MAUs following the major push that crypto companies had during the Super Bowl. But continued risk-off sentiment might cause a dent in Coinbase’s transaction revenues for the quarter.

In a quarter where most companies are being punished even if they do beat on earnings, I’ll likely wait to see how Coinbase reports on May 10th. The stock is currently trading at its all-time low prices, and with the crypto markets spiralling downward into a bear market, the short-term future looks bleak for Coinbase. But remember I like to look ten years out. Do I think cryptocurrencies will still be around? Absolutely. Ark Invest bought another 63,000 shares of Coinbase on Friday and while I don’t always agree with Cathie Wood’s trades, I do agree with her sentiment on Coinbase. You can wait for the earnings, but the further Coinbase falls, the bigger steal it becomes.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

7 months ago
All good!
Published On
2022-05-07 11:20

About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.

Perf. YTD-79.89%
52W high-84.98%
52W low6.23%
PE Ratio-7.76
MKT Cap7.66B

Analyst Ratings
Target Price$81.48
# of Analysts25
Last updated2022-11-14

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

One Chinese Stock J.P. Morgan Considers Good Investment
J.P Morgan is betting on the electric vehicle market.
By Precious Njoku | 1 month ago

Don’t Be Caught In The Bed and Beyond Meme Stock Madness!
Meme stock valuation depends on the hype, not the stock's fundamentals.
By Precious Njoku | 3 months ago

Stocks Buffett's Berkshire Hathaway (BRKB) Sold Off This Year
This year, Warren Buffett has sold a considerable number of stocks.
By Precious Njoku | 3 months ago

BBBY Short Squeeze: Have We Learned Our Lesson Yet?
Ryan Cohen Does Not Owe Us Anything.
By Mike Sakuraba | 3 months ago

Why Electric Vehicle Stocks Have an Uphill Climb
Rivian Cancels Pre-Orders, Short Seller Bets Against Tesla.
By Mike Sakuraba | 3 months ago

3 More Earnings to Focus On Next Week
Here are actually a few major companies that will be reporting next week.
By Mike Sakuraba | 3 months ago

Why Softbank's Sale of Alibaba Stock was a Good Move
Softbank Group Corp. (OTCMKTS: SFTBY),a Japanese multinational company, has gained much reputation over the years for investing in startups and making money.
By Precious Njoku | 3 months ago