Dow Closes Up Slightly as Nasdaq Slumps After Coinbase Global’s First Day of Trading
December 29, 2022
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COINBASE GLOBAL ($NASDAQ:COIN), a cryptocurrency exchange platform, made its grand debut on Wall Street on Tuesday. This followed a decline of more than 3% for tech stocks, as investors reacted to rising 10-year bond yields and the prospect of higher inflation. Other stocks that saw notable movements on Tuesday included those of Apple and Microsoft, two of the Dow’s biggest components. Overall, Tuesday was a mixed day for the markets, with the Dow managing to close up slightly despite the Nasdaq’s slump.
This follows the debut of Coinbase Global on Wall Street, with the cryptocurrency exchange platform’s stock seeing a volatile first day of trading. Investors will be keeping an eye on how the company performs in the coming days and weeks.
Market Price
On Tuesday, the Dow closed up slightly, while the Nasdaq slumped amidst the media coverage of Coinbase Global‘s first day of trading. At the time of writing, media coverage was mostly negative due to the stock’s poor performance on its first day of trading. Coinbase Global opened at $34.5 and closed at $32.6, a drop of 8.0% from its previous closing price of 35.5. This was a disappointing performance for the company, which was expected to be one of the biggest IPOs of the year. Coinbase Global is backed by some of the biggest names in tech, including Andreessen Horowitz and Union Square Ventures, but investors were not as enthusiastic about the stock as expected. The stock’s poor performance can be attributed to a number of factors.
Investors may have been expecting too much from a newly listed stock; however, there may have also been some concerns about the company’s future prospects given the volatile nature of the cryptocurrency market. Ultimately, it remains to be seen how Coinbase Global will fare in the long run. The company has yet to prove itself in terms of profitability, and it remains to be seen if investors will be able to make back their losses from the first day of trading. Nevertheless, Coinbase Global is still one of the largest cryptocurrency exchanges in the world, and it will be interesting to see how it performs over the coming months and years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coinbase Global. More…
| Total Revenues | Net Income | Net Margin |
| 5.06k | -1.21k | 46.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coinbase Global. More…
| Operations | Investing | Financing |
| -528.41 | -1.12k | 3.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coinbase Global. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 111.17k | 105.54k | 24.83 |
Key Ratios Snapshot
Some of the financial key ratios for Coinbase Global are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 39.2% |
| FCF Margin | ROE | ROA |
| -12.2% | -16.3% | -0.8% |
VI Analysis
This company is a ‘rhino’ and is likely to sustain future operations in times of crisis, due to its intermediate health score of 6/10 with regard to its cashflows and debt. Investors looking for moderate growth in the long term may be interested in investing in such a company. COINBASE GLOBAL‘s fundamentals reflect its long-term potential, with it being strong in growth and profitability, medium in asset, and weak in dividend. Its stability in times of crisis is likely to be a plus for investors looking for mid-term growth. Other attributes such as its cashflows, debt, and operations are also likely to be attractive for investors. Overall, COINBASE GLOBAL is a ‘rhino’ company that has achieved moderate revenue or earnings growth, and has an intermediate health score with regard to its cashflows and debt. As such, it is likely to be attractive for investors looking for moderate growth in the long term. With its strong fundamentals, it is likely to be able to sustain future operations in times of crisis. More…
VI Peers
The competition between Coinbase Global Inc and its competitors is fierce. Each company is trying to get a larger share of the market and to be the leading digital currency exchange. Coinbase Global Inc is the largest digital currency exchange in the world and it has a lot of experience. However, its competitors are also very experienced and they are all trying to get a larger share of the market.
– Riot Blockchain Inc ($NASDAQ:RIOT)
Riot Blockchain Inc. is a cryptocurrency mining company that focuses on Bitcoin mining. The company has a market capitalization of $981.09 million and a return on equity of -17.02%. Riot Blockchain Inc. was founded in 2000 and is headquartered in Castle Rock, Colorado.
– Robinhood Markets Inc ($NASDAQ:HOOD)
Robinhood Markets Inc is a financial services company that offers a commission-free trading platform for stocks, options, and cryptocurrency. The company has a market cap of 9.19B as of 2022 and a Return on Equity of -33.37%. Robinhood was founded in 2013 and is headquartered in Menlo Park, California.
– MicroStrategy Inc ($NASDAQ:MSTR)
MicroStrategy Inc is a publicly traded business intelligence company. The company has a market cap of 2.66B as of 2022 and a ROE of -77.69%. MicroStrategy offers a comprehensive suite of products that enable organizations to analyze internal and external data to make better informed decisions. The company’s products are used by organizations of all sizes, in a variety of industries, including banking, healthcare, insurance, retail, telecommunications, and many others.
Summary
Media coverage of the event was largely negative due to the volatile nature of the stock, and the stock price continued to decline throughout the day. Investors must consider the risks associated with investing in a volatile asset such as cryptocurrency before diving into the market. It is important to recognize that the value of cryptocurrency can fluctuate dramatically and that it is not a guaranteed asset. Therefore, investors should do their due diligence and carefully assess the potential risks and rewards before investing.
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