Coinbase stock lost over 75% value • Hacker News Board

Re: Coinbase stock lost over 75% value

#161

Post by azinman2 » Tue, May 10, 2022, 2:31 AM UTC

adventured wrote: post #44

hardwaresofton wrote: post #7

Earlier quoted context omitted.

Same -- there are actually a bunch of tech stocks that are think are similarly a good bet right now, for example $NET (Cloudflare). Any other things that look like good buys under the market crush?

NET is massively overvalued here, given the selling and repricing context. It could drop by another 50% and still be very richly priced. It's trading for 28 times sales, which is absurd. I say that as a big fan of the company's long-term prospects. Wait a while yet, it can be had for below $45 at least.

28x sales doesn’t seem so bad to me for a young highly innovative company with a huge fan base and real revenue streams that aren’t simply ads.

Re: Coinbase stock lost over 75% value

#162

Post by sushid » Tue, May 10, 2022, 2:31 AM UTC

kolbe wrote: post #146

anonu wrote: post #99

Earlier quoted context omitted.

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.

However, the spread they make on their transactions gets wider as price action is more volatile.

Can you explain? A wider spread means less efficient markets which means fewer transactions which means lower revenue, no?

Re: Coinbase stock lost over 75% value

#163

Post by Johnny555 » Tue, May 10, 2022, 2:31 AM UTC

dQw4w9WgXcQ wrote: post #141

gmays wrote: post #29

Earlier quoted context omitted.

Same. I've also bought Affirm, Shopify, Netflix, Peloton and Roblox in addition to Coinbase since they've all dropped ~70-90% in the last 6 months. I agree they were overvalued, but we seem to be in overreaction territory now. Even if we haven't seen the bottom yet, I think we'll see a lot of upside in these over the next 2-5 years.

Peloton is headed the way of GoPro. They were a pandemic fad for folks stuck in their homes and now you can't get rid of them on FB Marketplace etc.

I'm not sure they care too much how much their bikes earn on resale as long as they get new owners, even if people give them away for free they earn money when those new Peloton owners subscribe at $40/month.

Re: Coinbase stock lost over 75% value

#164

Post by almost_usual » Tue, May 10, 2022, 2:32 AM UTC

sulam wrote: post #131

_uy6i wrote: post #66

Earlier quoted context omitted.

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?

I hated a long time on AMZN too. Regretted it. NET looks similar to me, albeit it won’t be taking over 30% of the economy of course.

Wonder how many people said that about the online bookstore.

Re: Coinbase stock lost over 75% value

#165

Post by bfz » Tue, May 10, 2022, 2:32 AM UTC

thematrixturtle wrote: post #152

bfz wrote: post #139

Earlier quoted context omitted.

It warms my heart to think I could still be graded on language use so late in life. How would you describe it?

It's a bit awkward since "poisonous" usually refers to things you eat, and sandboxes or their contents are generally not eaten. If you want to continue the sandbox metaphor, which I do like, "playing in the Fed's sandbox until the bottom fell out" might work. Or even "toxic sandbox".

I was thinking somewhere vaguely along the lines of easy credit as something like heroin addiction/withdrawal, that's where poison came from. I guess it is awkward

Re: Coinbase stock lost over 75% value

#166

Post by bob1029 » Tue, May 10, 2022, 2:32 AM UTC

ferdowsi wrote: post #11

Cloudflare is down 71% in that same period. Zoom is down 60%. Speculative pandemic tech darlings are no longer darlings and are being hammered across the board. It's going to be a rough time for anyone who had high hopes for their equity compensation.

Mongodb is also taking quite a beating. Probably doesn't help that sqlite has been all over the front page lately (e.g. right now).

Re: Coinbase stock lost over 75% value

#167

Post by planarhobbit » Tue, May 10, 2022, 2:33 AM UTC

m1117 wrote: post #63

As a russian I like coinbase. It promotes crypto, which makes my world warmer.

No post body was provided.

Re: Coinbase stock lost over 75% value

#168

Post by scarface74 » Tue, May 10, 2022, 2:34 AM UTC

sulam wrote: post #126

mmaunder wrote: post #67

Earlier quoted context omitted.

$212M quarterly revenue with a $41M loss. In this climate you better have a solid PE as a public company or you’re in deep shit. This is the second dot-com bust. I worked at eToys for the first. $6B market cap and was delisted. Assets sold off for $2M when liquidated. Make no mistake about how bad things are about to get.

I lived through the dotcom bust, the financial crisis and now this. Long term it isn’t going to be any worse than they were. In 2-3 years we will be recovering. I feel bad for people who can’t wait out a market cycle, but that’s what this is, somewhat exacerbated by the Fed’s actions leading up to this point.

It took 15 years for Nasdaq to recover from the dot com bust. The S&P 500 was flat from 2000-2010.

Re: Coinbase stock lost over 75% value

#169

Post by stonogo » Tue, May 10, 2022, 2:34 AM UTC

mrpopo wrote: post #148

akomtu wrote: post #140

Earlier quoted context omitted.

I was about to make a joke about nuclear teapots powering cryptominers with their excess heat, but then realised this might be a legit idea: nuclear waste, that nobody knows what to do with, could be used to power asics mining bitcoins.

Nuclear waste literally comes from power plants. If their residual heat could be used to generate electrical power, it would be done already. It can be (and is, although not everywhere) used, for cogeneration - residual heat from any thermal plant used for district heating/industrial heating processes.

Nuclear waste also comes from plutonium production. And it could be used to generate power, but this leads to fuel reprocessing, which runs afoul of nonproliferation treaties, as it produces weapons-grade fissile material.

Re: Coinbase stock lost over 75% value

#170

Post by jshen » Tue, May 10, 2022, 2:34 AM UTC

ip26 wrote: post #97

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.

You can think they are a good company while also being fearful they won't survive the macro.

They aren’t a good company if they can’t survive the macro.