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4 Things You Should Know Before Buying Coinbase

By Jose Najarro - Apr 14, 2021 at 12:15PM

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Coinbase will go public today. Here are a few things to know before buying the company.

Before buying Coinbase, you should know the following:

  1. 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.
  2. 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. 
  3. Due to uncertainty over how crypto assets will do in the future, it is tough for management to give proper guidance on its revenue.
  4. 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. 


 

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