04/14/2021 3:36 PM
Updated 04/14/2021 3:36 PM
The platform for buying and selling cryptocurrencies
made its debut on the stock market with a rise of
47%, reaching $ 409 and thus marking a market value close to $ 100 billion.
By size, Coinbase would be worth about the same as
General Electric, Goldman Sachs or American Express,
which capitalize around $ 117 billion.
Coinbase's direct listing comes at the "perfect" time for the platform given the
growing demand for cryptocurrency trading
and record bitcoin prices, which hit
6,4,000 this Wednesday
but then fell to $ 63,000
, on a very volatile.
Reena Aggarwal, a finance professor at Georgetown University's McDonough School of Business, noted that the company is expected to attract wide interest,
including from exchange-traded funds that want to expose themselves to the world of cryptocurrencies but cannot actually. own bitcoins
The company anticipates it will report first-quarter revenue of around $ 1.8 billion, more than 800% above what it saw in the prior-year quarter.
Coinbase also expects to post net income of $ 730 million to $ 800 million, compared to the $ 32 million it reported a year earlier.
The company has 56 million verified users.
While the company is clearly benefiting from the growing interest in cryptocurrencies, experts predict that Coinbase's stock
will be volatile
given its ties to cryptocurrency trading activity and the price of popular crypto assets.
"To be cautious, we assume that the value of cryptocurrencies will remain cyclical, so we assume that Coinbase's revenue in 2022 will be 35% lower than in 2021," analyst Moffett Nathanson wrote in a note to clients Tuesday. .
She argued that "it is quite likely that we are currently approaching a peak" with Coinbase's expected first quarter revenue alone 40% higher than what the company published for the entirety of 2020.
Still, Ellis chose to rate the stock as
a purchase with a price target of $ 600, calling the stock an "extraordinarily rare asset"
that was certainly "not for the faint of heart" but for investors who have a "multi-year" time horizon.
for your investment.
Diego Morín, an
Diego Morín, an
analyst at IG Markets (Spain), points out in an article in the newspaper El Mundo that “the continuous injections of liquidity by central banks, as well as the latest stimulus plan of the Biden administration, cause a flight of the investors of the dollar towards other assets of interest, since
the impressions of free money generate nervousness
among them, "he explains.
In addition, it adds the role of institutional investors.
"Every day more investment fund analysts in the United States comment on the delicate situation of the economy and the exorbitant increases in debt, where the arrival of free money is creating a
bubble in global markets,
justifying part of the flight of capital towards certain cryptocurrencies ".
That is why the increases do not remain only in bitcoin.
Ether has also reached record heights, reaching 2,200 greenbacks in recent days, also encouraged by the debut of Coinbase.
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