Markets

Coinbase and Robinhood: JMP Picks the Best Crypto Stocks to Buy

Published

8 months ago

18 May, 2024

Bitcoin’s fourth halving occurred silently last month when block 840,000 was mined. Despite the official increase in scarcity, BTC prices have remained relatively stable. This stability could present new opportunities for potential crypto investors. Historically, halving events have been accompanied by price increases as the number of coins awarded for each block mined decreases.

However, the unregulated nature of the cryptocurrency market can be intimidating. However, this should not deter potential investors. Those who want to capitalize on the crypto market but are hesitant to purchase the coins directly can consider investing in crypto-related stocks. These shares are regulated, thus reducing the risk for investors while maintaining the quality of the investment.

Covering cryptocurrencies for investment bank JMP, 5-star analyst Devin Ryan delivers strong views on the best crypto stocks to buy in the current environment. Ryan looks at Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD), two prominent names in the world of crypto trading, and their opinions are worth taking a closer look at.

We used the TipRanks database to find out what the rest of the Street has to say about these two picks. Let’s dive.

Coinbase Global

We will start with Coinbase, one of the main digital cryptocurrency exchanges. The company operates an online platform and cryptocurrency wallet, accessible on both PCs and mobile devices, offering trading operations in most major cryptocurrencies. Users can buy, sell and trade Bitcoin, Ethereum, Dogecoin – 248 cryptocurrencies in total. Coinbase makes its app interface simple and intuitive to use, to make the trading process as easy as possible – and for application outside the digital currency niche.

The service has proven popular and Coinbase is available in over 100 countries. The app hosts approximately $312 billion in quarterly volume, and the company backs its trading with more than $348 billion in total listed assets. Coinbase is also working to improve trust in the crypto space and is committed to complying with best practices from traditional financial services companies.

Coinbase’s share price tends to track the price of Bitcoin, and when the leading cryptocurrency began to rise earlier this year, COIN shares also saw a rise. Increased investor interest in the crypto platform company has translated into solid gains for the stock, which is up about 220% over the past 12 months. The company now has a market value of nearly $49 billion.

The company’s financial results were solid in the first quarter of this year. Coinbase reported just over $1.6 billion in total revenue, beating forecast by $300 million and growing 112% year over year. Ultimately, Coinbase achieved an EPS of $4.40, a sharp turnaround from the 34 cent EPS net loss reported in 1Q23 – and beating the forecast by $3.33 per share.

Coinbase caught the attention of analyst Devin Ryan mainly for its growth potential. The analyst, ranked 21st overall by TipRanks, writes of the company: “While the growth from here is not linear, we think it is becoming more evident to the market that Coinbase is building one of the most holistic on-ramps for the economy. of digital assets and for virtually all types of users, including retail (for multiple use cases beyond commerce), institutions, merchants, developers (and more). Simply put, this business is evolving into much more than just a marketplace for buying and selling digital assets, which has been our consistent thesis.”

Looking ahead, Ryan goes on to describe what specifically encourages Coinbase shares at the moment, saying: “We think investors should size positions with a view around the stock as a higher risk proposition given the inherent volatility in the markets. of cryptography, and also the ongoing uncertainty surrounding regulatory and legislative matters. That said, we see the risk/reward opportunity as attractive…”

Taken together, these comments support Ryan’s Outperform (i.e. Buy) rating on Coinbase shares, and his $320 price target shows his confidence in a ~61% upside potential for the year ahead. (To see Ryan’s history, Click here)

Overall, Coinbase gets a Moderate Buy consensus rating from Wall Street analysts, based on 21 recent reviews that break down into 9 Buys, 9 Holds, and 3 Sells. Shares are trading for $199.17, and its $244.37 average price target suggests a one-year upside of approximately 23%. (To see Coinbase Stock Forecast)

Robinhood Markets

The second stock we’ll look at is online financial services company Robinhood. Robinhood has offered commission-free trading on its platform, in stocks, ETFs, IRAs – and in cryptocurrencies since 2022. Robinhood launched its mobile app in 2015 and quickly became popular among younger investors.

Robinhood offers a number of advantages for younger investors new to trading markets. The platform allows users to trade from as little as one dollar and also makes funds available through the Robinhood Gold Card or Crypto Wallet. All of this fuels Robinhood’s self-described mission to democratize finance for everyone. Some numbers show the company’s progress in this direction: It had 24 million customers funded as of April 30 and claims $123 billion in assets under custody.

The popularity of the Robinhood app and its popularity as a crypto trading platform is reflected in the company’s stock performance; over the past 12 months, shares are up about 111%. Stocks posted these gains despite choppy trading and a few missed sessions in recent weeks.

Turning to the company’s financial results, we see that the 1Q24 report, the most recent, presents several record numbers. Quarterly revenue was $618 million, up 40% year over year, for a company record. The end result was another record, with GAAP earnings per share reported at 18 cents per share. Revenues were $63 million above forecast and earnings per share exceeded by 12 cents per share. These numbers were reinforced by record net deposits of $11.2 billion.

The record performance and strong annual growth caused JMP’s Devin Ryan to take notice of Robinhood and take a more bullish stance than the Street overall.

“We believe Robinhood can continue to deliver stronger than appreciated growth and stronger than appreciated profitability, all supporting the valuation… With the reacceleration of revenue growth coupled with management’s focus on expenses, We estimate that the company should be able to deliver average earnings growth of 30%+ over the next few years, with significant headway before the business model reaches a more “mature” state. At the same time, Robinhood’s financial stability has never been better, with cash and investments exceeding $5 billion, approximately one-third of its entire market value,” Ryan opined.

In his own results, Ryan says: “Based on our growth projections as we look ahead to the next few years, we see the valuation as quite attractive…”

Quantifying his bullish stance, Ryan assigns an Outperform (i.e. Buy) rating to HOOD stock and sets a $30 price target that suggests a roughly 68% gain in the stock over the next year.

This is the optimistic position. The Street’s broader view puts a Hold on HOOD, based on 16 ratings that include 4 to buy, 8 to hold, and 4 to sell. Robinhood shares are selling for $17.90, and the average share price target of $20.14 implies 12.5% upside over 12 months. (To see Robinhood Stock Forecast)

To find good ideas for stock trading at attractive valuations, visit TipRanks’ Best stocks to buya tool that brings together all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Source

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

6 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

6 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

6 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week