Crypto means digital money that people can use to buy things or trade with others. Sometimes, crypto prices go up and sometimes they go down. Recently, Bitcoin's price went down a lot but it is still worth more than before. Read from source...
- The title of the article suggests a positive outlook on crypto stocks, but the content does not provide any clear reasons or criteria for choosing them. It seems like clickbait and misleading to readers who expect some value-added insights from the author.
- The author mentions Bitcoin's recent price decline as a negative factor for crypto stocks, but does not explain how it affects their fundamentals or long-term prospects. This is a superficial and short-term oriented analysis that ignores the potential benefits of diversification and asset allocation in the cryptocurrency space.
- The author only focuses on one coin, Coinbase Glb (NASDAQ:COIN), as an example of a crypto stock to buy. This is a very narrow and subjective perspective that does not account for other factors such as market capitalization, liquidity, volatility, security, regulation, etc. It also shows a lack of knowledge and research on the cryptocurrency sector and its players.
- The author does not provide any evidence or data to support his claims or recommendations. He uses vague terms like "long-term perspective" without defining what they mean or how he measures them. He also does not disclose any conflicts of interest or personal bias that may influence his opinions or ratings.
1. Coinbase Global (COIN) - Buy with a price target of $380
Coinbase is the largest U.S. cryptocurrency exchange by trading volume, providing a secure and easy-to-use platform for users to buy, sell, store, and use cryptocurrencies. The company's revenue is primarily derived from transaction fees, which are based on the size and frequency of transactions conducted through its platform. Coinbase has been expanding its product offerings and global footprint, launching in 65 new countries this year. Additionally, it announced partnerships with leading institutions such as BlackRock (BLK) and Bank of New York Mellon (BK). The company also plans to launch an IPO on the Nasdaq stock exchange, which would further increase its visibility and accessibility to investors.
However, Coinbase faces several risks that could impact its future performance, including increased competition from other exchanges and platforms, regulatory uncertainties surrounding cryptocurrencies, and potential security breaches or cyberattacks. Additionally, the company's valuation is quite high compared to its peers, trading at a price-to-sale ratio of 24.6x, which could make it vulnerable to market fluctuations.
Risk: Regulatory uncertainties and security breaches could negatively impact the company's performance and stock price.
2. Square (SQ) - Buy with a price target of $150
Square is a leading provider of financial services and software solutions for businesses, including its popular Cash App, which allows users to send and receive money, as well as buy and sell cryptocurrencies. Through its Seller ecosystem, Square offers a suite of products and tools that enable businesses to accept payments, manage their inventory, and access financing. The company also recently acquired a majority stake in Tidal, a global music and entertainment platform, expanding its reach into the creator economy.
Square's exposure to cryptocurrencies has been a major driver of its growth, as it generated $3.5 billion in bitcoin revenue from its Cash App in 2020, up 1,480% from 2019. The company has also been increasingly integrating crypto into its core business, allowing users to buy and sell cryptocurrencies directly from their Square accounts and offering loans backed by bitcoin.
However, like Coinbase, Square also faces several risks that could impact its future performance, including increased competition from other financial services providers, regulatory uncertainties surrounding cryptocurrencies, and potential security breaches