Forget Coinbase, Buy this Growth Stock Instead
In today's video, I'm going to raise a couple of points as to why Square (NYSE: SQ) is a better buy than Coinbase (NASDAQ: COIN), which is going public this week through a direct listing. You can expect a pretty high valuation, especially since we're in a crypto bull market. Investment bank D.A. Davidson says valuation could reach $90 billion. We're also going to have a look at Coinbase's first-quarter estimated earnings (pretty impressive).
When you buy, sell, and send on Coinbase, it takes a fee (flat or a percent of the value). Taken from its S-1 filing:
We generate substantially all of our total revenue from transaction fees on our platform in connection with the purchase, sale, and trading of crypto assets by our customers. Transaction revenue is based on transaction fees that are either a flat fee or a percentage of the value of each transaction.
Source Fool.com
