hey guys how's it going it's Andy from Magoo investing happy Friday so I hopped on twitter this
morning and one of the first things I saw this is the one year anniversary of Bitcoin (BTC) dropping
50 in a single day and I thought was really interesting because it dropped all the way down to
3 800 and then looking at the charts right now I’ll throw up the one-year chart for
Bitcoin (BTC) and we're currently sitting above 57 000. that's crazy to think about so yesterday
we talked about the Roblox IPO and if you missed that video I’ll link that up above right now but
with the way IPO’s go once it goes public a lot of the hype kind of dies down you look
for what's the next big IPO and the one that I’m kind of watching this is one of two IPOs that I’m
watching and I’m really excited about towards the end of the year with the one-year anniversary of
the Bitcoin (BTC) crash I think it's only fitting to talk about the Coinbase Stock (COIN Stock) IPO
it's rumored to happen the next couple months so what was rumored this past summer that
Coinbase Stock (COIN Stock) was looking to go IPO but we didn't really know for sure until
the s1 filings of the sec were released at the end of February so now we know what they are
trying to go IPO and while we don't fully know the date when it's going to happen it should
be relatively quickly and I’ll make a prediction based off of some cold hard facts or when I think
Coinbase Stock (COIN Stock) is going to IPO in the next couple months so in today's video I’m going
to be giving my analysis on Coinbase Stock (COIN Stock) and I went through all of the s1 files of
the SEC because when you have a publicly traded company you have a level of transparency that
you have to go through and when you get the s1 filing that's the first time you get to kind of
peel back the cover and look to see how these private companies have been operating for the past
couple years you can see a lot of the important information about where they make their money and
how they've been doing for the past couple years so I can talk about all the important information
that you'll need to know before deciding if it's right for you to be investing in something like a
Coinbase Stock (COIN Stock) going forward so we're going to be doing this in three parts
as always part one we're going to be talking about Coinbase Stock (COIN Stock) as a whole
talk about how they make money and just kind of what to expect going forward part two we're
going to be looking at some of the numbers from the s1 files and talk about some of the
risks that the company itself has identified we talked about this yesterday with the
Roblox IPO they were worried about their younger demographic growing older and not
being able to replace itself so Coinbase Stock (COIN Stock) has gone through and
put out some risk factors I’d like to discuss in this video and then part three and give my
overall thoughts on Coinbase Stock (COIN Stock) and give it a one out of ten on the brand new
Magoo investing scale and that's just based off of what I believe is right from my portfolio and
I always like to say that if you disagree with me on a specific company I’d love to hear why because
obviously I don't know everything but I’m just kind of curious to see what people see
differently than I do that make you say that oh yeah I want to buy into this company when maybe I
don't feel the same way so first what is Coinbase Stock (COIN Stock) and why is it important there
are two places that you can go to get Bitcoin (BTC) you can set up some very expensive and
very complicated computers to actually mine the Bitcoin (BTC) or you can buy it from an exchange
and Coinbase Stock (COIN Stock) is the largest exchange in the united states when you look at the
exchanges by size it is not the largest Binance is much larger but from everything I could find it
was founded in china so it's not considered a u.s based exchange so it went from a valuation of 8
billion in 2018 to its current estimated valuation of 100 billion dollars based off of a private sale
that happened on the Nasdaq before it's going to go IPO so Coinbase Stock (COIN Stock) is pretty
large looking at their summary page from their s1 filings Coinbase Stock (COIN Stock) has 43 million
verified users and 2.8 million monthly transacting users so you have Coinbase Stock (COIN Stock) is
viewed as being one of the more popular exchanges out there and from the information I found they
don't spend that much money on marketing at all mainly it's by word of mouth and people
learning about Coinbase Stock (COIN Stock) as being one of the most reliable places to
buy and sell cryptocurrency online so that is what I really like to see because we've
been seeing some companies I specifically think of Palantir recently that I talked about at the
beginning of this week that was spending so much of their money I think it was 61 of their total
revenue on marketing and so seeing a company like Coinbase Stock (COIN Stock) not having to spend
on marketing I’m a big fan of that and based off of the massive increase that we've been seeing in
trading specifically after the GameStop situation I’m expecting that those numbers are actually much
higher because those numbers go through December 31st of 2020 and based off of the GameStop fiasco
that happened at the beginning of January I’m expecting a lot more people have gotten
involved with buying and selling stocks but also getting involved with cryptocurrency especially
with dogecoin dogecoin became so big I’ll put up the chart and I’m pretty surprised that dogecoin
has actually been able to retain a lot of its value that was gained I kind of expected this
be like a two-week push-up and then have a major sell-off but so far it's been actually retaining
its value pretty well and so people that are invested in that congrats on your gains because
that's actually pretty impressive so some of the other numbers overall they have a lifetime
trading volume of 456 billion dollars and they currently have 90 billion dollars in total assets
on the platform and from those transactions they make 96% of their revenue from the transactional
fees and from the numbers that I could find they make 0.75% on every transaction so this
is a company that's very dependent on scale we talk about companies that don't really have large
margins and so being able to increase the volume of transactions is how this company is going to
grow in the future and based on how bullish you are in the overall cryptocurrency space this could
mean that Coinbase Stock (COIN Stock) has a lot of potential going forward so from those huge boosts
and users in 2020 they saw their record revenue of 1.2 billion dollars in 2020 after posting 533
million dollars of revenue in 2019 so this is very expected as trading volume increases and the price
of Bitcoin (BTC) is soared from a one-year low of like thirty eight hundred dollars now fifty seven
thousand dollars it makes sense that they're making a lot more money than they had in the past
so here's some important growth metrics that I found for the company they saw a 34 increase
in verified users 180 percent increase in monthly transacting users and a 432 increase in assets on
the platform and they went from having a net loss of 30 million dollars in 2019 to a net profit of
322 million dollars so 2020 was a fantastic year for cryptocurrency overall and a fantastic year
for Coinbase Stock (COIN Stock) based off of the numbers that they've shown it would make sense why
company has done so well in the past year would want to capitalize on the success by going public
which brings in a lot of money for the company but they're not doing in the traditional method
of going through a traditional IPO process this takes a lot of time it costs a lot of money to go
through the old underwriting process and actually selling out the individual shares and so what
they're doing instead is a trend that we've been seeing a lot recently with having a direct listing
under the stock exchange we've been seeing a lot of companies like Palantir ticker symbol $PLTR
we had Roblox just a couple of days ago to example $RBLX and then we had Spotify even a couple years
ago that went public during this process what this means is that they're not going to be raising any
capital from it and all the shares that they're going to be selling are already out there and
so this won't be diluting the founder shares it on it's very interesting to see if this will be
a new trend that we see in companies going public because 2020 was the year of the
[ __ ] acquisition these are very quick ways for companies to get a lot of funding and go public
for companies that don't have a lot of revenue or that don't have the traditional requirements to
be listed on the stock exchange so for this year we've been seeing a trend of companies
going public via the direct listing and so it'll be very interesting to see if 2021 is going to be
the year the direct listing after 2020 was the year the space and all the years before that
have been the year of the traditional ipos so when is Coinbase Stock (COIN Stock) going to be
going public and i do want to mention that it's going to be trading under the ticker symbol $COIN
and I have some very secret information that I’m going to share with you guys based off of
some very smart due diligence that I did and so here's my process of deciding when I think
Coinbase Stock (COIN Stock) is going to IPO and so it took 36 days for a Palantir to go public after
their s1 filing and then it took roadblocks 111 days to go public after their s1 filing
so you take the average of those two numbers and you're going to round up obviously because
why wouldn't you then you have 74 days and what 74 days from the day that they posted
their s1 filings it's going to go public on May 10th of 2021 that's a Monday so that's
going to be a date to circle on the calendar because it's for sure going to be that date
but in reality we really have no idea it's very dependent on how the company wants to operate
and how quickly some of the behind the scenes processes go so we've seen that it's a wide range
you have companies that takes 30 days some take more than 100 so I’m expecting early spring for
my prediction if you want to average out those two numbers and make the guess like I did so
may 10 2021 Coinbase Stock (COIN Stock) is going public circle it on your calendar
so let's talk about that s1 filing because as I mentioned this is a very interesting time it's the
first time that we're allowed to look under the cover and kind of see what's going on with these
companies and I read the entire s1 filing this morning because I didn't really have anything else
to do I was sipping on my coffee listening to some great music and I just kind of went through it and
found the important part so here's the important parts that I wanted to share with you guys
Coinbase Stock (COIN Stock) mentions that the crypto market cap of assets has seen a
compound annual growth rate or CAGR of 150% since 2012. when we've been talking about some of these
other companies we've been hearing compound annual growth rates for like 20 and I would consider that
as being very solid you could say that the sky's the limit for something like a coin base based off
of the popularity of the crypto market and just how much growth that they've seen in the past
couple years as I mentioned 96 percent of their revenue comes from transactional fees and so this
means that they are very dependent on crypto doing well and in the past year obviously crypto's done
incredibly well we've had the rise of something like a dogecoin uh we've had the significant spike
in value of stuff like Bitcoin (BTC) and ether and so the company came out in the risk section
of their s1 filing and I wanted to read this quote about future risks all of our sources of revenue
are dependent on crypto assets and the broader crypto economy there's no assurance that any
supporter crypto asset will maintain that's value or there will be any meaningful levels of trading
activity so as you'd expect Coinbase Stock (COIN Stock) is going to be very dependent on the cycles
of cryptocurrency that we've been seeing obviously the last time we had a bear market it was pretty
aggressive sell-off back in I think it was like winter going into 2018. so that was a while ago
and so things aren't going to be going this well forever I just watched a video that was linked
by someone in my discord so thank you for that uh that mentions that based off of the weekly
candles the expectation that the crypto market should be crashing in early September and whether
that's going to happen we'll see but if that does happen it'll be a huge risk to something like a
Coinbase Stock (COIN Stock) that is very dependent on people buying and selling cryptocurrency and so
here's another quote that I wanted to read out from the risk section a majority of our
net revenue is derived from transactions in Bitcoin (BTC) and Ethereum (ETHER / ETH) if
demand for these crypto assets declines and is not replaced by new crypto asset demand our business
operating results and financial condition could be adversely affected so this is a company that
obviously is going to be very dependent on the success of crypto going forward and I think that
begs the question that I’ll answer in part three of this is it worth buying into something like
a Coinbase Stock (COIN Stock) instead of just buying into the actual cryptocurrencies because
if this is a company that's going to be linked with Bitcoin (BTC) and ether and some of the other
cryptocurrencies is it worth buying into a company like this could you just buy into something like
Bitcoin (BTC) or ether and just ride the wave we'll talk about that in part three and I’ll give
my views on that they also mentioned some risks about dealing with different governments and we've
been seeing some pushes from the us government to try to get access to crypto data because
there's been this discussion that there's a lot of money laundering a lot of illegal activities
happening with crypto but then you can make the argument that if you just look at the banks
they're also as guilty so there's just kind of this target on cryptocurrency because it's new
and the irs doesn't have access to as much of the information as they would probably like
and we've been seeing the feds take down various areas we saw them take down different exchanges
for money laundering and now we have the situation with xrp and Ripple (XRP) which was taken down i
think was like December of 2020 because it could set the groundwork for how the fed is going to be
looking at cryptocurrency going forward and in theory Bitcoin (BTC) and ether won't have the
same problems because they're acknowledged by the sec as being non-securities because
of their mining process whereas the xrp supply was capped when it was created so you have some
differences between these cryptocurrencies but this is going to be something to watch going
forward because the Ripple (XRP) and xrp versus the fed it's going to be fascinating to see what
the result of it is and see what the trickle-down impact is on the rest of the cryptocurrency market
but the irs wants their money and just a reminder that you do need to pay income tax
on any cryptocurrency gains and I will put above right now the thresholds that are met where they
will send you a 1099 and the irs so don't get hit by the irs uh they're pretty scary people
so let's talk about part three how am I feeling about the Coinbase Stock (COIN Stock) IPO overall
I’m a little torn obviously anything involved with the cryptocurrency space is going to have a
lot of volatility and risk associated with it but I’ve already taken on that risk because I’ve been
invested in Bitcoin (BTC) for almost four years at this point I got in and followed 2018 rode the
wave down and then bought on the way back up so I’m up significantly since my original investment
so that makes me ask the question would it just be easier to buy into Bitcoin (BTC) or
Ethereum (ETHER / ETH) and not have to worry about buying into an individual company and there are
some benefits one of the benefits of buying into something like a Coinbase Stock (COIN Stock) is
that you get the insurance policies that go along with any publicly traded company and so
this means that say your shares somehow get lost or someone hacks into your account and takes it
they're insured and then you have the risk of cryptocurrency this is probably the biggest fear
of mine of having a specific wallet is actually losing it and you can see plenty of examples of
here's a guy from 2013 that threw out his wallet that had 7 500 Bitcoin (BTC) in it that's worth
hundreds of million dollars now and the fact that around 20 of all of the Bitcoin (BTC) that's out
there in circulation is lost and so that's kind of the biggest worry is that you don't have the
insurance and the protections to protect your investment because it's not insured by any of
these financial backings that we have for stocks and bonds and stuff like that so there is a risk
associated with that but Coinbase Stock (COIN Stock) does try to protect its users by having 98
of their Bitcoin (BTC) and cold storage meaning that it's not accessible from the internet so
in theory it's much safer so overall I’m going to give Coinbase Stock (COIN Stock) a 7 out of 10 on
my Magoo investment scale this is something where if Coinbase Stock (COIN Stock) goes public and it
falls in value significantly I’d probably consider buying in because I think it's a very interesting
place to invest and being involved with the crypto market is fascinating I talked about on
this channel I made a video about places to invest if you're looking to take advantage of crypto boom
I’ll link that above right now and some of the places that I talked about were like a PayPal
or a square that are involved with cryptocurrency but are not as involved as something like you know
buying straight into Bitcoin (BTC) this might be a good in-between place to invest because obviously
it's going to be very dependent on the price of crypto but it's also based off of buying
and selling so if the price stays the same but there's still the transactions going on Coinbase
Stock (COIN Stock) will be making money even if the price of the underlying cryptocurrencies don't
go up so it will be something to watch and I’m very interested to see what you guys have to say
because this might be a quote-unquote safer way to get involved with crypto because you do have the
insurance protections based off of buying individual shares also I saw some articles
talking about the valuations of Coinbase Stock (COIN Stock) being a little wild
I wanted to share some of those numbers based off the valuation of 100 billion dollars
they'll be trading at 77 times trailing 12 month sales and 310 times earnings is this a red flag
no investing in tech overall you're going to have these crazy valuations because they're betting on
the future when you have these well-established companies sure I’ll look at a p e ratio to
determine if they're actually at a good deal but for these companies where the sky is the limit and
there's so much growth potential for the company I don't see this as being a crazy thing especially
with the compound annual growth rate of the crypto market being 150 since 2012 it makes
sense that it's trading at these crazy multiples and you get a tech stock and then you also make
it involved with crypto I think trading at these valuations isn't that unheard of so
as of right now I’m like a 7 out of 10. I’m going to be very curious to see what happens with
the crypto market when Coinbase Stock (COIN Stock) actually goes public and to see what
people have to say about it overall we still don't know the date that it's going to go public it will
go public under the ticker coin but based off of my guess I’m going to guess Monday may 10th is the
day that it's going to go public and we'll have to see if that's actually going to be the case
probably not so let me know what you guys have to say about Coinbase Stock (COIN Stock) and
are you interested in buying into the Coinbase Stock (COIN Stock) IPO when it does go public
thanks for watching this video I appreciate all support and I will see you in the next video