All aboard Coinbase $COIN for a blowout 8/12 ER 🚂🚀🚂🚀🚂

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 trading commissions blow traditional brokerage houses out of the water Bid/ask spreads are wider than Strahan's gap tooth Fees are fat (and scale with transaction size) They just unveiled an institutional "Prime" service on 5/25 catering to corporations looking to diversify their balance sheets In addition to the "exchange" business, they're now lending, offering debit/credit card products, and soon will allow you to generate passive income by "staking" your assets (FYI this bullet alone encompasses the entire banking industry, Visa, Mastercard, JPM, BAML, etc.) Despite the big internet money dump, the key driver to trading activity is VOLATILITY - which causes lots of buying/selling, and we definitely had that in Q2 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: There's an existential threat of fake assets flaming out like in 2017, even though this seems less likely with each passing day as more and more institutions hold internet money on their balance sheets and incorporate it into their remittance / payments infrastructure It's weird that Sat-oshi is unknown and still holds $35B of the core asset, making him the greatest hero but also the greatest threat if he/she/they/zir were to dump 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 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

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Original Post

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captain_blabbin

Jul 12, 2021

-8.98%

Change % Since Posting

253.88

Price When Posted

-22.81

Change Since Posting

COIN

Coinbase Global Inc - Class A

231.07

-1.17
-0.50%
Current Price

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All aboard Coinbase $COIN for a blowout 8/12 ER 🚂🚀🚂🚀🚂

bullish

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:

  1. Their trading commissions blow traditional brokerage houses out of the water
  2. Bid/ask spreads are wider than Strahan's gap tooth
  3. Fees are fat (and scale with transaction size)
  4. They just unveiled an institutional "Prime" service on 5/25 catering to corporations looking to diversify their balance sheets
  5. In addition to the "exchange" business, they're now lending, offering debit/credit card products, and soon will allow you to generate passive income by "staking" your assets (FYI this bullet alone encompasses the entire banking industry, Visa, Mastercard, JPM, BAML, etc.)
  6. Despite the big internet money dump, the key driver to trading activity is VOLATILITY - which causes lots of buying/selling, and we definitely had that in Q2

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:

  1. There's an existential threat of fake assets flaming out like in 2017, even though this seems less likely with each passing day as more and more institutions hold internet money on their balance sheets and incorporate it into their remittance / payments infrastructure
  2. It's weird that Sat-oshi is unknown and still holds $35B of the core asset, making him the greatest hero but also the greatest threat if he/she/they/zir were to dump

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

🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

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read-time
2 min

300.00

Target Price

9/ 10

Confidence

1-2 Months

Timeframe
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Earnings Release
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News
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SEC Filing
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Sentiment
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Other Catalyst

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