Before buying Coinbase, you should know the following:
- Coinbase will be a very volatile stock, since most of its revenue is collected from trading fees. Due to the volatility that this stock will see, I believe investors should properly allocate how much they are willing to invest and be prepared for a wild ride.
- Coinbase has shown strong fundamentals. It is profitable, with high margins, and in its most recent earnings, it showed strong growth in revenue, income, and monthly transactions.
- Due to uncertainty over how crypto assets will do in the future, it is tough for management to give proper guidance on its revenue.
- Just a reminder to growth investors: We recently saw how high-valuation bubbles can pop at any moment. I am not saying Coinbase or crypto is in a bubble, but it is always great to learn from past lessons and experiences.
Click the video below for my full thoughts.
*The video was published on April 14, 2021.
