Coinbase stock is UNDERVALUED, but with RISKS? | Stock Analysis

HOW TO INVEST INTO CRYPTO CURRENCY Indirectly?

When there’s a gold rush why not just sell shovels!

In the Cryto era you can invest into a brokerage platform such as Coinbase, this is a great way of playing this market.

1. Coinbase stock analysis
2. Coinbase Founder, Next Elon Musk?
3. Is Coinbase stock undervalued?
4. Coinbase investors & Insider trading
5. Investing into Coinbase, MAJOR RISKS

1. COINBASE STOCK ANALYSIS

Coinbase is building the crypto economy a fair,  accessible , efficient and transparent financial system enabled by crypto.

Coinbase was one of the first and most easy to use crypto brokerage, so this company was started in 2012. whereas companies like Binance was started in 2017. So a few years after, thus Coinbase was  really a pioneer in the space!

COINBASE Isn’t the largest crypto exchange…

Coinbase isn’t the largest exchange in the world so as you can see from trading volume this is looking at the top cryptocurrency spot exchanges in terms of traffic liquidity trading volumes we can see binance has a much higher volume here compared to the coinbase exchange which is much much lower but coinbase is second on this list.

 

However, in the world rankings coinbase comes in at number 13 in terms of volume traded in billions of dollars.

Coinbase is NOT the largest platform, but it is one of the easiest to use & they but are expanding into Germany and Japan. Coinbase has been granted the first crypto license in Germany.

COINBASE Investments into new products…

Coinbase is also investing heavily into a variety of new products, they’re currently allocating 10% of their capital into the new product range.

Bitcoin borrow , which allows users to borrow money using bitcoin as collateral.

Coinbase card,  which is already activewith visa so visa. Users can actually spend their cryptocurrency on everyday purchases.

Want to get paid to try coinbase?

Use link below 🤑 COINBASE: Free $10 of Bitcoin when you buy $100 crypto on platform. https://www.coinbase.com/join/alaimo_r1

COINBASE Cloud, Next Amazon Web Services?

Coinbase is also working on a platform called Coinbase Cloud. The idea of this is to be what amazon web services aws is to the internet.. so coinbase cloud will allow decentralized applications to be built on top of this platform.

For Software developers from their website. “Our API’s make it easy to build and connect your app to over 40 million Coinbase customers, integrate cryptocurrencies, and more.”

COINBASE FOUNDER, Next Elon Musk/Mark Zuckerberg?

The Ceo and founder of this company is Brian Armstrong.

He Has the traits of a great tech entrepreneur;

• Long Term Vision
• Deep Knowledge of Blockchain
• Drive/Commitment 

SKIN IN THE GAME?

He owns 17% of the company with insiders have a total of 23% of shares outstanding.

Coinbase is also backed by some leading investors so we’ve got andreessen horowitz which is a leading venture capital firm they own six percent of the company.]

COINBASE STOCK FINANCIALS?

The company’s revenue at the end of 2020 was 1.2 billion dollars, however the company’s revenue is skyrocketed by over 300 percent to 4.9 billion dollars.

so this is my advanced valuation model here i’ve plugged in all the numbers for coinbase and i’ve actually been really conservative in terms of the growth so previously it grew at 300 percent i’ve put next year it only grows at 30 and then the next two to five years 30 again.

IS COINBASE STOCK UNDERVALUED?

YES! BUT WAIT! (be sure to read the risk section)

Coinbase stock undervalued right now value per share $342 and the share price is $248, so it’s definitely looking over 27% Undervalued.

PRICE TO SALES = 14   , PRICE TO SALES (Robinhood) = 27

Robinhood although stock broker platform also makes it’s revenue from “ORDER FLOW & TRADING VOLUME”.

 COINBASE STOCK RISKS?

1.COINBASE BROKER NOT UNIQUE/COMMODITY

There are now many different platforms where you can buy and sell cryptocurrency now compared to 2012 .

2. CRYPTO VOLATILITY TIED TO COINBASE SHARE PRICE

Coinbase share price will be pegged to the price of cryptocurrency , so if crypto booms once again the price of coinbase will go up because their transaction volume will equal more revenues for coinbase and if crypto plummets so will coinbase’s revenues!

CRYPTO PRICE INCREASE = COINBASE REVENUE INCREASE 

CRYPTO PRICE CRASH = PEOPLE SCARED OUT MARKET = LOWER COINBASE REVENUES = LOWER COINBASE SHARE PRICE

3. INSIDERS HAVE BEEN SELLING COINBASE STOCK!

Now i do understand this is how venture capital works they invest early stage companies and they exit at the ip,  but if a company founder really had a lot of faith in the company moving forward maybe they wouldn’t exit and sell as much of their stock.

FOUNDER & CEO Brian armstrong sold 291 million dollars worth . of shares ipo price of $410

andreessen horowitz sold $6 million worth of shares at $348  per share & close to $4 million worth at $230/share.

FINAL THOUGHTS?

COINBASE is a fantastic company, growing extremely fast, profitable & could create a new “CRYPTO ECONOMY”. However, be aware of the risks of the companies share price being affected bu cryptocurrency, and the heavy competition with broker platforms.

THIS IS NOT FINANCIAL ADVICE

Join Our Investing Course & VIP Community to Access all 

VALUATION MODELS for over 55 Stocks! Click here to find out more https://www.motivation2invest.com/product/stock-investing-course/

---