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HomeInvesting IdeasStock Analysis Coinbase Global, Inc.

Stock Analysis Coinbase Global, Inc.

Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.

As of 15 March 2023

Coinbase Global, Inc.(COIN:NASDAQ)

  • Coinbase is a digital currency exchange and brokerage platform that allows individuals and institutions to buy, sell, and store cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. Coinbase generates revenue by charging transaction fees on trades and by offering premium services to its users.

What we think are pros of business:

  • Large User Base
  • Trust and Reputation
  • Diverse Revenue Streams

What we think the risks are:

  • Regulatory Risks
  • Volatility of Cryptocurrencies
  • Competition
  • Dependence on Bitcoin: Coinbase generates a significant portion of its revenue from Bitcoin trading fees.

Fundamentals:

  • Market Cap: 13.64 Billion
  • P/E : NA
  • D/E : 0.94
  • Operating Cash Flow: $700 Million average
  • Profit margins = ~100%
  • ROE= -44.89%
  • P/FCF= NA
Source: Coinbase annual report

Technical for long term perspective:

Trend : Down to sideways

Entry : Enter at lower level around 45 and DCA 35 with Strict SL 33

Target: 160 can be first target if crypto market stay solvent

Our Final Thought:

This company is one of the largest crypto exchanges in the world. So given that it handles a huge volume of crypto transactions, the company has a lot of potential upside in future. This can be a risky investment due to the volatility attached to cryptocurrencies. A good stock to look at for crypto believers.

Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and  your own due diligence before investing.

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