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Coinbase ($COIN) will be a cash cow for years to come.
In Q1 alone they had $1.8B of revenue and $771M of profit (~43% margins). Q2 earnings are coming up the 8/20 expiry is looking juicy. My guess is that with an extremely volatile quarter for internet money, they will blow Q1 out of the water and we'll be above $300 by the end of July.
This is what I like about the stock:
Their total addressable market is also massive and faux asset / internet money adoption is beating the trend of the internet when it came out.
This is what I hate about this stock:
So it's not necessarily a slam dunk but I'm betting fake assets continue to evolve from meme dog coins to real utility providers in the DeFi ecosystem. Also, this an ancillary business to the trading / brokerage side of the house: which is displacing business from Fidelity, Charles Schwab, CBOE, stock exchanges, etc. as people go digital.
In my opinion, DeFi is going to completely disrupt the banking system, and CB can take a leading role in monetizing that ecosystem. It simply doesn't make sense to store cash deposits yielding 0.01% at Chase when you can be earning 7-10% on cash in stable coins.
TLDR: 7/16 250c's and 8/20 300c's
Oppenheimer raises $COIN PT to $444
2Q ER is August 12th
Closing price 7/9: $253.88
52W High: $429.54