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Coinbase stock lost over 75% value

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Re: Coinbase stock lost over 75% value

#111

Post by zitterbewegung »

xmprt wrote: post #104
version_five wrote: post #40

Earlier quoted context omitted.

> Out of all the tech companies that IPO’d in the past few years, Cloudflare is one that the most potential to excel long term If you think this, you should be happy and buy more of the stock. I don't know enough to say if I think it's a good idea, but if you do, don't be sad, buy more of it.

Yes and no. You might not have cash to spare (especially in such a volatile period). Also, investing more might exceed your exposure limit to a single stock/industry.

Sure you should have a diversified portfolio but everything is also on discount. Warren Buffet went on a buying spree. If you don't have cash to spare thinking about investing isn't what you should focus on but instead doing basic financial wellness like having a savings account. Also cash has been outperforming the market so far so cash isn't necessarily a bad investment.

Re: Coinbase stock lost over 75% value

#112

Post by RyanShook »

anonu wrote: post #99
wallawe wrote: post #4

I'm a buyer at this point. We'll see how earnings turn out tomorrow, but no matter how bad the macro environment, I think $COIN at 7 P/E is a good buy long-term.

P/Es are irrelevant here I think. $COIN is a transaction-based business. Transactions are correlated with the price of BTCUSD. BTCUSD is down 50% in 6 months. The r/wsb crowd and others just wont be as enthused to trade something that isn't going to the moon. Thus, transactions will continue to trend down and $COIN will suffer.

Yep, I purchased COIN at IPO as a proxy for BTC and other crypto. Don’t expect it to recover until cryptocurrencies do, may be a while…

Re: Coinbase stock lost over 75% value

#113

Post by daenz »

ike0790 wrote: post #55

i don't see why anyone would want to buy coinbase stock. it's extremely correlated to the broader crypto market with less upside. In a bull market, you could buy bitcoin or maybe be a bit more risky and buy some of the higher tier alt-coins and it would probably give you a 1.00 correlation in bull and bear cycles, but during the bull cycles the coins would skyrocket because they are tied to any major fundamental metr…

I think people bought into the idea because they were selling shovels in a gold rush.

Re: Coinbase stock lost over 75% value

#114

Post by [deleted] »

_uy6i wrote: post #66
cj wrote: post #31

I’m particularly sad to see Cloudflare’s stock having plummeted. Out of all the tech companies that IPO’d in the past few years, Cloudflare is one that the most potential to excel long term. Developer sentiment towards Cloudflare is comparable to Apple fanboys of the previous decade, and their products are legitimately good, backed with tangible assets (datacenters). They also have consistent growth quarter over quar…

I know nothing about NET other than the 30seconds I just spent looking at their financials - they managed to triple their revenue over three years but they seemed to have managed to about triple their losses over the same time period and they trade at ~30x sales, MSFT is ~11x, guess people believe they’ll be earning a ~$2b/year in the next several years?

[deleted]

Re: Coinbase stock lost over 75% value

#115

Post by sulam »

cj wrote: post #31

I’m particularly sad to see Cloudflare’s stock having plummeted. Out of all the tech companies that IPO’d in the past few years, Cloudflare is one that the most potential to excel long term. Developer sentiment towards Cloudflare is comparable to Apple fanboys of the previous decade, and their products are legitimately good, backed with tangible assets (datacenters). They also have consistent growth quarter over quar…

I also own NET and will likely be treating this dip as an opportunity to load up more.

Re: Coinbase stock lost over 75% value

#116

Post by RyanShook »

squeaky-clean wrote: post #78
silisili wrote: post #35

Earlier quoted context omitted.

As someone who works at a...semi competitor, I think you're absolutely right about Cloudflare. They've got a strong team, strong products, and a lot of users. I think they're in a great position to start making tons of cash if so inclined...

Whenever cloudflare has an outage and like half the internet stops working, it reminds me to buy some more.

Good point. But does Cloudflare have a moat? Seems like AWS or some other service could start competing directly with them if they wanted to.

Re: Coinbase stock lost over 75% value

#117

Post by chollida1 »

bfz wrote: post #92
cj wrote: post #31

I’m particularly sad to see Cloudflare’s stock having plummeted. Out of all the tech companies that IPO’d in the past few years, Cloudflare is one that the most potential to excel long term. Developer sentiment towards Cloudflare is comparable to Apple fanboys of the previous decade, and their products are legitimately good, backed with tangible assets (datacenters). They also have consistent growth quarter over quar…

Worth recalling there are >5 rate hikes priced in for the remainder of the year, and that the problem with CloudFlare isn't just the speculation, but for their legitimate business, the credit fuelling many of their customers, which are significantly concentrated in the tech sector. The coming tightening of hiring will also inevitably mean the tightening of infrastructure budgets. What built CloudFlare's excellent sal…

> I think we'll discover before the end of this year just how many of the tech darlings were largely side effects of the poisonous sandbox constructed by the US fed

?? Poisonous sandbox?

Is this an awkward way of referring to money printing? Or the low interest rate environment?

Re: Coinbase stock lost over 75% value

#118

Post by yalogin »

cj wrote: post #31

I’m particularly sad to see Cloudflare’s stock having plummeted. Out of all the tech companies that IPO’d in the past few years, Cloudflare is one that the most potential to excel long term. Developer sentiment towards Cloudflare is comparable to Apple fanboys of the previous decade, and their products are legitimately good, backed with tangible assets (datacenters). They also have consistent growth quarter over quar…

You can have similar sentiments towards a lot of the companies. For example zoom, twilio come to mind. Point is all of them across the board have been inflated.

Re: Coinbase stock lost over 75% value

#119

Post by lazyier »

vmception wrote: post #20
wallawe wrote: post #4

I'm a buyer at this point. We'll see how earnings turn out tomorrow, but no matter how bad the macro environment, I think $COIN at 7 P/E is a good buy long-term.

> long-term what's your time horizon exactly? also there may be a steeper discount tomorrow, when the forward estimates in the conference call talk about how something related to the macroeconomic environment and declining volumes and empty NFT marketplace, but who knows its just that its not always about the earnings themselves

Long term these things can loose 100% of their value.

That is an actual possibility.

Re: Coinbase stock lost over 75% value

#120

Post by rabuse »

koolba wrote: post #87
jmyeet wrote: post #50

So I'm a crypto non-believer. I see it as the ultimate solution looking for a problem. But that doesn't apply to Coinbase because, at its core, Coinbase should be a transactional business that is a proxy for the size of the crypto market (or, more specifically, the crypto trading volume). I don't know enough about the financials of Coinbase however. It could be they have risks unrelated to their transaction business.…

They make money from people transacting. Every buy or sell on their platform nets them a commission so their total revenue is directly proportional to how frothy the market is feeling. A major crash like we’ve been seeing in both the traditional market and crypto space means there is less money coming in, less money moving around, and less fees for Coinbase. And with a persistent recession you’re not going to see peo…

They generate a lot of their revenue from a fee percentage for every transaction, so it really shouldn't affect them on crypto price swings, as long as people are still purchasing crypto.
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