Blockchain
Shhh! 3 Secretive Blockchain Stocks Flying Under Wall Street’s Radar
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With Bitcoin (BTC-USD) prices fell after an important Fed meeting, many traders may be heading for the nearest exit. The past events of the Bitcoin halving have paved the way for strong results in subsequent quarters. However, one cannot help but notice the rather unpleasant technical picture of Bitcoin and some of the other cryptocurrencies.
Investors may be wondering whether the conditions are right for a continued decline in Bitcoin prices. So, is it time to save Bitcoin right here? Only time will tell.
Regardless, some major blockchain stocks are involved in the slide. These names are for investors looking not just for Bitcoin but the entire crypto asset class and the future of blockchain technology.
From most unstable to most stable, we look at three blockchain bets that deserve more respect from Wall Street in the context of Bitcoin’s post-halving collapse.
Currency base (COIN)
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CoinBase (NASDAQ:CURRENCY) is a publicly traded stock for investors who want a proxy for the price of cryptocurrencies like Bitcoin. Undoubtedly, the correlation between COIN stock and Bitcoin has been quite notable lately. COIN stock’s chart over the past year certainly appears to mirror that of Bitcoin, perhaps with wilder swings in either direction.
Now Bitcoin may be flirting with a bear market. Additionally, Coinbase shares have tumbled, now down about 25% from their 52-week high. If investors continue to bail out Bitcoin, COIN could easily take a bigger hit. But the situation could change and Bitcoin halving event could possibly lead to a sizable rebound. Perhaps later in the year, the stock could face a bigger rise than Bitcoin itself.
Therefore, Coinbase is definitely worth keeping an eye on for those looking for an entry point into the crypto asset class. It will be interesting to see how the cryptocurrency exchange company performs in the coming crypto winter. It may be in better shape to roll with the punches as it continues to invest strategically across the ecosystem.
PayPal (PYPL)
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PayPal (NASDAQ:PYPL) is another blockchain-style strategy best suited to value investors. Coinbase stock, while more tied to Bitcoin’s booms and busts, is far too expensive for the value public. COIN stock is worth a high price-to-earnings (P/E) ratio of 51.55 times. This is well ahead of PYPL stock’s forward P/E of just 13.28x.
With shares up more than 20% over the past six months, perhaps it’s time to put fallen fintech stocks back on a watch list.
The company’s stablecoin, PayPal USD (PYUSD) launched almost a year ago The Ethereum blockchain. Arguably, the token is one of the most reliable stable coins for cryptocurrency investors looking for order and stability.
In fact, PayPal has also dealt with some pretty big cryptocurrency names, including Crypto.com and Ledger. As PayPal looks to wade further into blockchain waters, one has to imagine that more partnerships could be on the cards.
Mastercard (MA)
Source: David Cardinez/Shutterstock.com
Finally, MasterCard (NYSE:BUT) is flirting with the correction zone after reporting a solid earnings recovery in the first quarter. In truth, actual quarterly numbers don’t seem to mean much if they’re accompanied by a cut to full-year forecasts.
For 2024, management now expects net revenue growth in the low-end rather than the high-double-digit range. Indeed, this is disappointing given the rather high rating. (MA shares are worth 31.3x forward P/E.) But that’s still not that terrible, given the turbulent macroeconomic picture.
Looking ahead, I expect Mastercard to continue to innovate on numerous initiatives, including those involving blockchain. Like PayPal, Mastercard can make money in the space by partnering with established players to bring consumers into the cryptocurrency realm with maximum security. The company has a reputation to uphold. Therefore, expect it to continue giving priority to safety especially in all activities related to cryptocurrencies and blockchain.
As of the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Joey Frenette is a senior investment writer specializing in technology and consumer stocks. Contributing to Motley Fool Canada, TipRanks and Barchart, Joey excels at identifying mispriced stocks with long-term growth potential in a fast-paced market.
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