How Is Coinbase Stock Doing Since Its Blockbuster IPO?
C losing its first day of trading with an $87 billion valuation, Coinbase was the seventh-largest new U.S. public listing of all time. This article was originally written by MyWallSt. Read more market-beating insights from the MyWallSt team here. Things could be better  Since it began trading in April, Coinbase has failed to excite investors, despite pretty impressive figures in its first earnings report as a publicly-listed company:  Total revenue of $1.8 billion, up almost 800% from the year previous. Earnings per share of $3.05 and net profit of over $771 million  more than fourfold the figure from the quarter previous. It seems that the main worry for investors is that the companys stock price tends to fluctuate in conjunction with the value of Bitcoin and other cryptocurrencies. And if theres one thing we know about digital currencies, its that they are very volatile, even on a good day (never mind those times when Elon Musk sends the entire crypto market crashing with just a few short tweets). Back in May, Coinbase shares fell sharply with the price of Bitcoin during the crypto crash. Coinbase shares have still not recovered from the crypto dump and are down over 20% from its IPO date. Firstly, Coinbase is a great example of why you should practice patience and wait a few months before investing in a company that has recently listed. This allows its share price to settle a little. Secondly, Coinbase is a unique company to invest in because its fortunes are inherently tied to a separate asset class. While the companys common stock might be structured like any other publicly-listed company in the U.S., its fundamentals depend entirely on the fortunes of Bitcoin, Dogecoin, and other digital assets, which means that you really have to be bullish about the future of cryptos to be bullish about Coinbase. With countries like China and Britain making big moves to curtail the use of Bitcoin and similar cryptocurrencies, theres sure to be a lot of uncertainty ahead. MyWallSt gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now!