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Zacks Investment Ideas feature highlights: Coinbase and BlackRock
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For Immediate Release
Chicago, IL – July 12, 2023 – Today, Zacks Investment Ideas feature highlights Coinbase (COIN - Free Report) and BlackRock (BLK - Free Report) .
The Coinbase Bull Case
Coinbase is the leading crypto exchange in the United States. The San Francisco-based company is facing a securities violation lawsuit from the Securities and Exchange Commission. However, since the SEC lawsuit was filed one month ago, shares have soared by more than 60%!
SEC Lawsuit Fallout & Price Action Versus News: When in doubt, the best course of action for investors is to trust the price and volume action in a stock. Why? Price and volume represent real money being risked, while headlines in a vacuum can, at times, represent fear, uncertainty, and doubt. When a stock shrugs off bad news like COIN, it sends investors a clear message of strength. Tuesday, Coinbase shares emerged from a long base structure on massive volume well above the norm – a sign of demand.
Regulatory Clarity
Believe it or not, the lawsuit may end up being a net positive for the company. While the case is an obstacle, it is short-term in nature. In the long term, COIN will benefit from regulatory clarity. Something CEO Brian Armstrong has pleaded with the SEC for years for.
Strong Balance Sheet
Seth Klarman is a legendary value investor, billionaire, and one of the highest-earning money managers in the world. In a recent interview, Klarman stated that he avoids crypto but sees value in Coinbase, saying, "Coinbase is sitting on $5 billion in cash, has less than that in debt, and is doing some smart things."
Bitcoin ETF Catalyst
"Slowly at first, then all at once" seems to sum up the rush for big institutions to get a piece of the crypto space. Eight institutions have filed papers for a Bitcoin ETF in the past few months, including Fidelity and the world's largest asset manager, BlackRock. Because Coinbase is listed as the custodian for these ETFs, the company benefits directly should any of the ETFs be approved.
High Short Interest
A quarter of Coinbase's float remains short. In other words, if there are any positive surprises, the high short interest should act like fuel thrown onto a fire.
Positive ESP Score
Coinbase's positive Earnings ESP score means that the company will likely to beat earnings expectations when it reports in August.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Coinbase and BlackRock
For Immediate Release
Chicago, IL – July 12, 2023 – Today, Zacks Investment Ideas feature highlights Coinbase (COIN - Free Report) and BlackRock (BLK - Free Report) .
The Coinbase Bull Case
Coinbase is the leading crypto exchange in the United States. The San Francisco-based company is facing a securities violation lawsuit from the Securities and Exchange Commission. However, since the SEC lawsuit was filed one month ago, shares have soared by more than 60%!
SEC Lawsuit Fallout & Price Action Versus News: When in doubt, the best course of action for investors is to trust the price and volume action in a stock. Why? Price and volume represent real money being risked, while headlines in a vacuum can, at times, represent fear, uncertainty, and doubt. When a stock shrugs off bad news like COIN, it sends investors a clear message of strength. Tuesday, Coinbase shares emerged from a long base structure on massive volume well above the norm – a sign of demand.
Regulatory Clarity
Believe it or not, the lawsuit may end up being a net positive for the company. While the case is an obstacle, it is short-term in nature. In the long term, COIN will benefit from regulatory clarity. Something CEO Brian Armstrong has pleaded with the SEC for years for.
Strong Balance Sheet
Seth Klarman is a legendary value investor, billionaire, and one of the highest-earning money managers in the world. In a recent interview, Klarman stated that he avoids crypto but sees value in Coinbase, saying, "Coinbase is sitting on $5 billion in cash, has less than that in debt, and is doing some smart things."
Bitcoin ETF Catalyst
"Slowly at first, then all at once" seems to sum up the rush for big institutions to get a piece of the crypto space. Eight institutions have filed papers for a Bitcoin ETF in the past few months, including Fidelity and the world's largest asset manager, BlackRock. Because Coinbase is listed as the custodian for these ETFs, the company benefits directly should any of the ETFs be approved.
High Short Interest
A quarter of Coinbase's float remains short. In other words, if there are any positive surprises, the high short interest should act like fuel thrown onto a fire.
Positive ESP Score
Coinbase's positive Earnings ESP score means that the company will likely to beat earnings expectations when it reports in August.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.