With all the interest in Bitcoin as its' halving approaches, it makes sense to look at stocks that are likely to benefit from the crypto bull market. Just like those who sold shovels during the goldrush of the 1840s, companies like Coinbase look poised to profit handsomely in the coming years. From a macro perspective, it's easy to see that as Bitcoin rises more and more people will look to purchase Bitcoin or other cryptocurrencies such as Ether or SOL. This is likely to mean increased earnings and sales for Coinbase as it is by far the most well-known platform for those looking to invest in crypto.
Coinbase tends to live and die with Bitcoin. For instance, Coinbase delivered monster earnings in 2020 and 2021 only to see annual earnings decline 170% in 2022. This makes sense given very few people had any desire to buy Bitcoin as it was falling and FTX was collapsing. However, since 2023, Coinbase has really turned things around. In fact, its' earnings and sales have both been accelerating over the last five quarters. Annual earnings are also estimated to be up over 800% this year compared to 2023!
From a technical perspective, COIN looks to be setting up in a high-tight pattern. This occurs when a stock doubles in eight weeks or less and then holds up in a tight, orderly fashion in the following weeks. High-tight flag patterns were characterized by the great William O'Neil. This type of pattern is difficult to find, but it is highly coveted as it offers enormous potential. I currently own Coinbase because its' strong chart combined with its' powerful earnings and sales growth were just too much for me to ignore.
Risk right. Sit tight.
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Full Disclosure: I currently own Coinbase, Bitcoin, Solana, and Ethereum.
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