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    Home Unlabelled Stock Market - Compound interest is very essential in making investments

    Stock Market - Compound interest is very essential in making investments

    September 18, 2021

    Stock Market - Compound interest is very essential in making investments

    Compound interest is very essential in making investments

    Posted: 18 Sep 2021 04:35 AM PDT

    WKHS vs. Hedge Funds

    Posted: 18 Sep 2021 01:02 PM PDT

    Rough 3 months I forgot what a stop loss was

    Posted: 17 Sep 2021 09:31 PM PDT

    DNA ANYONE?

    Posted: 18 Sep 2021 07:10 PM PDT

    Coinbase Analysis

    Posted: 18 Sep 2021 06:13 PM PDT

    Should I Buy Coinbase Highlights

    Coinbase was one of the most highly anticipated IPO's on the NASDAQ in 2021. The company has over $180billion of assets on the platform and over 68 million users worldwide.

    About

    Coinbase is one of the go-to platforms for people wanting to invest in crypto the easy way. Coinbase was one of the first platforms to make cryptocurrencies easy for people to buy and sell.

    The previous method prior to Coinbase involved terminal commands and remembering lengthy codes. A slide from one of the companies pitch decks illustrates this perfectly.

    Coinbase Stock Price

    Coinbase is listed on the NASDAQ under the ticker symbol COIN (COIN:NASDAQ) and currently trades on a market capitalisation of US$51.26 billion with a stock price of $243.

    Coinbase IPO Price

    • What was the Coinbase IPO Price? Coinbase completed its direct listing on the NASDAQ with a reference price of $250 when it IPO'd back in April 2021.
    • What date did coinbase IPO? Coinbase IPO'd on April 14 opening at $381 before briefly topping $400.

    Coinbase Latest Financial Report

    The group in the quarter generated over $2.0 billion in net revenue, including $1.9 billion in transaction revenue and over $100million in subscription and services-based revenue. Net income for the quarter was $1.6 billion and Adjusted EBITDA was $1.1 billion.

    As volatility and crypto asset prices are highly correlated with trading
    revenue, the crypto market environment heavily influenced our Q2 financial results.
    Coinbase Q2 FY21 Report

    The above quote from the group seems to indicate that a period of volatility also means that trading volumes will be higher, it is assumed that the group means both highs and lows in the underlying crypto's encourage users to trade more often.

    In the groups, 2Q21 report to the market Coinbase points out that As of March 31, 2021, Assets on Platform totalled $223 billion, representing 11.3% of the total market capitalization of crypto assets.

    As the industry develops over time, we expect this to increase as Institutional companies will start committing more of their funds into crypto. We are only really at the tip of the iceberg when it comes to institutional participation in crypto.

    Coinbase Income Statement 2Q21

    Coinbase has increased its key metrics from revenue, gross profit and net income across the board since releasing its first set of quarterly results in June 2020.

    The AGR on Coinbase Income is over 4000% since their first set of quarterlies, whilst we can't see this continuing we see no reason why income cannot grow at large double-digit multiples until at least 2023.

    Is Coinbase Reliant on Bitcoin?

    In group financial reports the dependence on trading volume in relation to Bitcoin has decreased over time with trading volume in other crypto-assets now higher than Bitcoin. Interestingly Ethereum Trading volumes as of 2Q21 have now also outstripped BTC, this is potentially due to the higher volatility of the crypto.

    Coinbase Fundamentals

    • PE ratio (TTM): 17.91
    • Price to Book (PB): 13.80
    • Price to Sales: 10.4x
    • PEG Ratio: 0.99x
    • EPS (TTM): 13.58

    The company has a PE ratio of 17.91x and a price to sales ratio of 10.4x. The PE ratio of 17.91 sits below the average NASDAQ PE Ratio which is currently around 28x, the group P/S ratio, however, sits above the NASDAQ Average of ~5x

    Peer Comparison

    Square and PayPal currently trade on P/E ratio's of 249x and 67x respectively. COIN stock for comparison is trading on a P/E of 17.91x. Coinbase Stock is also trading at a similar P/S ratio, however, generating significantly more EPS than SQ or PYPL.

    Coinbase Stock Competitors

    Coinbase has a number of competitors internationally:

    • Coinbase
    • Binance
    • Robinhood
    • Blockchain
    • Bitrex
    • Bitfinex

    Coinbase has no publicly listed competitors in which to compare their valuations other than Robinhood (however these companies are also generating revenues in significantly different ways).

    Interestingly enough, although Binance is not a publically listed company we can obtain data through the companies 'burning' of their BNB token.

    Outlined in the original Binance Coin whitepaper, the company pledged to burn BNB tokens equal to 20% of its quarterly profits. With BNB tokens valued at $390 million burned this quarter, Binance should have made close to $2 billion in profit since April.

    We see an advantage in COIN Stock being the only publicly listed company on the list with a focus directly on crypto. Our reasoning for this is around institutional and high net wealth individuals and the perception of trust in the company.

    We see as more and more institutions look to invest in the crypto-economy they will seek stability and trust in whom they are conducting business with, as COIN Stock is publicly listed we believe this creates a higher perception of trust.

    Should I Buy Coin Stock – Key Business Risks

    1. Coinbase may not be able to trade every asset on our centralized exchange for regulatory reasons
    2. Erosion of the companies transaction revenue due to increased competition
    3. Declining interest in crypto-economy, however the reverse is also COIN Stocks key upsides.
    4. Hacking of the system

    Key Upside Opportunities

    • Increased growth of the crypto-economy as a whole (think of Google in the 2000's, as the internet grew, so did google)
    • Subscription based revenues to continue growing at large rates
    • Release of NFT platform on Coinbase (Potentially buying OpenSea)
    • International Expansion into Japan and Germany (Flagged in Q2FY21)
    • Increased traction of Coinbase USDC (StableCoin)

    Ownership Structure

    Coinbase stock is owned predominantly by the General public at 40.9% with individual insiders and institutions taking up the next largest slices of the structure at 23.6% and 22.5% respectively.

    CEO of Coinbase Brian Armstrong is the largest individual holder in COIN stock with 17.12% of the float. Co-Founder Fredrick Ehrsam also continues to hold large portions of Stock. Other notable holders include ARK Invest and the VC firm Andreessen Horowitz.

    Summary

    The only real negative we hear around the investment community is the risk of new participants into the space, however, we believe Coinbase is potentially 5-years ahead of any competition based on the below:

    1. Coinbase Cloud, allowing devs and users to intergrate and develop platform ontop of COIN's ecosystem and hooking directly into the platforms API's
    2. The trust of Institutions in Coinbase, as more and more institutions seek exposure to crypto assets, they will typically rely on the most trusted solution.
    3. As the only publicaly listed crypto company of this nature we believe institutions will be attracted to the perceived 'security' of COIN Stock over other competitors

    Coinbase Stock has continued to generate significant growth in revenues and earnings over the past 8 quarters, with a significant turning point in the last year. We believe Coinbase Stock will continue to surprise the upside and see the potential for significant growth from institutional demand in the crypto-economy in the near term.

    COIN Stock has spent over 7 years developing systems and overcoming challenges that the company now plans to commercialize through the use of the Coinbase Cloud Platform. We see this move as the Amazon of the crypto world and will provide the tools required for other companies to build products on top of.

    submitted by /u/ProphetInvestAUS
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    Earnings next week

    Posted: 18 Sep 2021 06:30 AM PDT

    Cadillac Lyriq reservations opened 9/18, sell out through Summer 2022 ($59k, 300 miles range, Super Cruise)

    Posted: 18 Sep 2021 04:28 PM PDT

    White House warns states of potential big cuts to Medicaid, school lunch and disaster relief programs if the US government defaults on its debt

    Posted: 18 Sep 2021 05:33 AM PDT

    Most discussed stocks of last week and its sentiment! What are your moves for next week?

    Posted: 18 Sep 2021 06:48 AM PDT

    The Mystery of WallStreet: The Stock Market for Beginners!

    Posted: 18 Sep 2021 07:23 PM PDT

    What are your thoughts on shorting Evergrande?

    Posted: 18 Sep 2021 09:00 AM PDT

    $lilm meet George Jetson.

    Posted: 18 Sep 2021 10:47 AM PDT

    A few options here and there, these have been the main holdings with ~65k margin. Clean energy in Q4 2020. How am I doing?

    Posted: 18 Sep 2021 09:35 AM PDT

    Most Anticipated Earnings Releases for the week beginning September 20th, 2021

    Posted: 17 Sep 2021 09:01 PM PDT

    Looking for the best portfolio spreadsheets/trackers out there

    Posted: 18 Sep 2021 08:09 AM PDT

    Hi everyone, I've look around for a free spreadsheet to keep track of all my stocks, etfs and dividends, but with not much success. I really want to be able to have a visualization of what's happening with my portfolios and make sure that I can DCA and diversify in an optimal way.

    •Is there something (free or paid) out there that will support multiple currencies and give a total in USD(or any currency)

    •shows pie charts of the sectors, categories, market caps, diversification in general of investment

    •uses a live source of information like let's say Google Finance

    •a progression and maybe also an AI projection of the capital growth and the dividends

    •the more useful information, the better

    •If it's an app that supports CVS file it's good too but not a requirement idm spending time filling this ba hand

    I don't mind to pay or spend time for that kind of tool cause it will help me, and I think other people too, a lot. I'm french so there might be some english typo.

    The best I found so far is from this youtuber (it's also free) : https://youtu.be/0tky8n9nUQw

    I posted this on multiple subreddits and I'll update them all if I find anything better so that others can try it too.

    Edit 1: This one is pretty good, https://www.portfolio-performance.info/en/

    submitted by /u/FrontBrandon
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    She’s supporting AMC directly

    Posted: 18 Sep 2021 06:47 PM PDT

    We survived quadruple witching day! Russell still above trendline. Worldwide large caps plus S&P at levels (50 day average) where they always bounced previously. Together with a low bullishness of investors could this be already the end of the correction?

    Posted: 18 Sep 2021 07:01 AM PDT

    Concept Short Squeeze On Stocks - Economist

    Posted: 18 Sep 2021 05:48 AM PDT
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