COIN - Coinbase: Cryptocurrencies Moving From 'New Paradigm' To Denial (Rating Downgrade)
2024-05-16 10:00:00 ET
Summary
- Coinbase has seen a ~234% return in the past year, following the trend of major cryptocurrencies like Bitcoin.
- Momentum in cryptocurrencies appears to be fading, potentially pointing to the end of the bull market.
- While some cryptocurrencies may have viability, I argue Bitcoin, in particular, is not a viable currency, inflation hedge, or a means of storing wealth.
- Cryptocurrencies are not a direct inflation hedge but a sign of rebellion against a precarious monetary system.
- Coinbase's valuation appears too high even if we assume strong EPS growth, giving me a long-term outlook depending on whether the current Bitcoin bull market ends.
Coinbase ( COIN ) has been among the top-performing stocks over the past year, with a staggering 234% return. The company has rallied following the trend in major cryptocurrencies like Bitcoin ( BTC-USD ) and others. In addition, its valuation has increased as investor sentiment surrounding the company has improved....
Coinbase: Cryptocurrencies Moving From 'New Paradigm' To Denial (Rating Downgrade)