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Should You Buy the Coinbase IPO?

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  • (0:45) - Coinbase IPO: 2021’s Hottest IPO
  • (3:00) - What Can You Learn From Past IPO’s
  • (8:45) - Understanding Coinbase: What Should Investors Expect?
  • (12:20) - Tracey’s IPO Regrets: Missed Opportunities
  • (20:15) - Episode Roundup: COIN, FB, SNAP, ABNB, TLRY, GOOGL, V
  •             Podcast@Zacks.com

 

Welcome to Episode #267 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey has gone solo to talk about the hottest IPO of 2021 (so far), which is the listing of Coinbase (COIN - Free Report) .

What’s Your Investing Plan?

First, you should ask yourself what your plan is.

1.       Are you a trader?

2.       Are you an investor?

3.       What are your investing goals and does this IPO fit into that plan?

Lessons from the Facebook IPO

There’s a lot of hype around the Coinbase IPO.

There as a lot of hype in 2012 around Facebook’s (FB - Free Report) IPO as well.

Remember all the investors buying it so they could pay for their children’s college education with it?

Everyone wanted to own shares of Facebook. It IPO’d hot but within a month the shares had tanked over 50%.

It took a year before the shares re-took the IPO levels.

Long-term investors could buy at a lower price as long as they were patient.

No Sure Things

A similar story played out in Snap (SNAP - Free Report) and Tilray (TLRY - Free Report) in recent years.

Other recent IPOs have been strong out the gate, like Airbnb (ABNB - Free Report) which is up 21% in 2021 but it only went public in December 2020.

Some IPOs never pull back, however.

Google, now known as Alphabet, went public in 2004.

Since its IPO, it has been one of the top performing stocks on the S&P 500 and is up over 4,000% in the last 17 years.

What else should you know about buying the Coinbase IPO?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of FB and GOOGL in her personal portfolio. No, she did not buy either one at the IPO.]

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

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