Latest news with #JosephVafi
Yahoo
16-05-2025
- Business
- Yahoo
Meet the Newest Stock in the S&P 500: It Has Soared 640% Since 2023 and Is Still a Buy in 2025, According to Certain Wall Street Analysts
Coinbase Global on May 19 will be added to the S&P 500, an index commonly viewed as the single best gauge for the entire U.S. stock market. Following inclusion in the S&P 500, companies have historically seen their shares prices increase by an average of 12% during the next year. Coinbase runs the largest U.S. cryptocurrency spot exchange, and the company will acquire the world's largest cryptocurrency options exchange Deribit. 10 stocks we like better than Coinbase Global › Coinbase Global (NASDAQ: COIN) will be added to the S&P 500 (SNPINDEX: ^GSPC) before the stock market opens on Monday, May 19. The stock has rocketed 643% higher since January 2023, but certain Wall Street analysts still anticipate substantial gains in the next year. Joseph Vafi at Canaccord Genuity and Devin Ryan at Citizens JMP have set Coinbase with target prices of $400 per share. That implies 52% upside from the current share price of $263. Read on to learn more about this cryptocurrency stock. The S&P 500 is regarded as the best barometer for the overall U.S. stock market. The index tracks 500 large companies that account for 80% of domestic equities by market value. To be eligible for inclusion, companies must meet certain criteria, including GAAP profitability, a minimum market capitalization of $20.5 billion, and a sufficiently liquid stock. Over the past decade, 177 companies were added to the S&P 500, meaning about one-third of the index was replaced. Those stocks returned an average of 12% during the year following their inclusion. In this situation, Coinbase will join the S&P 500 on May 19, so statistics say the stock will advance 12% over the next year from its closing price on that day. Investors may wonder why stocks tend to increase after joining the S&P 500. That answer lies in the many products linked to the index. Investment vehicles like S&P 500 ETFs must buy Coinbase stock upon its inclusion to ensure their product reflects the composition of the underlying index. That buying activity can cause price appreciation. Similarly, companies may benefit from greater visibility after joining the S&P 500, meaning investors may be more likely to recognize and buy shares of the stock. However, tailwinds related to inclusion in the index are temporary. How Coinbase stock performs in the long run depends on financial fundamentals like revenue and earnings. Coinbase operates the largest cryptocurrency exchange in the United States and the third largest globally as measured by trading volume. The company earns transaction revenue by facilitating the buying and selling of cryptocurrency among retail and institutional investors. Coinbase also earns services revenue from storage, staking, and stablecoin products, as well as subscription fees from its Coinbase One platform. Coinbase reported lackluster results in the first quarter. Revenue rose 24% to $2 billion on strong momentum in subscription and services, which itself was driven by Coinbase One and its revenue share agreement with Circle, the issuer of stablecoin USDC. A sequential drop in transaction volume prevented revenue from growing faster. Meanwhile, non-GAAP earnings fell 23% to $1.94 per diluted share due to a sharp increase in operating expenses. Coinbase plans to acquire Deribit, the largest cryptocurrency options exchange, for $2.9 billion in cash and stock. Options are derivatives that give the owner the right (but not the obligation) to buy or sell an asset at a certain price over a specified period. It is reasonable to assume Bitcoin and Ethereum options will become more popular as the cryptocurrency market expands. The Deribit acquisition positions Coinbase to benefit. Morningstar expects the cryptocurrency market to hit $7.8 trillion by 2035. That implies 136% upside from its current value of $3.3 trillion, which itself implies 9% annualized growth over the next decade. That seems plausible as it roughly matches growth in the last five years. And it's reasonable to think Coinbase's earnings will grow at a similar pace, perhaps slightly faster as the company gains share in derivatives. In the more immediate future, Wall Street expects Coinbase's earnings to increase at 19% annually through 2026. That consensus makes the current valuation of 49 times earnings look somewhat expensive. Personally, I think investors should wait for a better entry point before buying shares. In the meantime, purchasing a spot Bitcoin ETF is a good way to get exposure to cryptocurrency. Before you buy stock in Coinbase Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coinbase Global wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy. Meet the Newest Stock in the S&P 500: It Has Soared 640% Since 2023 and Is Still a Buy in 2025, According to Certain Wall Street Analysts was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
12-05-2025
- Business
- Yahoo
American Bitcoin Spin-Off, AI Ambitions To Boost Hut 8 Stock: Analyst
Canaccord Genuity analyst Joseph Vafi maintained a Buy rating on Hut 8 Corp. (NASDAQ:HUT) and reiterated the $32 price forecast. The analyst writes that he sees consistent progress at Hut 8 under the leadership of CEO Asher Genoot and his team, who have been in place for approximately five quarters. While the past year has primarily involved operational streamlining and realignment within Hut 8, Vafi believes the future holds more significant the analyst expects Hut 8 to navigate the complex challenge of maximizing the value of its Bitcoin (CRYPTO: BTC/USD) miner power portfolio and existing assets while simultaneously pursuing emerging opportunities in AI hosting without hindering either endeavor. The analyst notes that the U.S. Bitcoin miners have grown via capital markets, but public markets often undervalue them despite strong returns and potential cost advantage over direct BTC buys. The analyst adds that the company's American Bitcoin vision might prioritize BTC accumulation over max mining output, potentially mirroring MicroStrategy's treasury success. Overall, the involvement of Eric and Donald Trump Jr. in American Bitcoin suggests that the new company's activities will likely extend beyond solely mining Bitcoin, writes the analyst. Today, Gryphon Digital Mining, Inc. (NASDAQ:GRYP) disclosed a definitive stock-for-stock merger deal with American Bitcoin, a majority-owned subsidiary of Hut 8, for an undisclosed amount. Upon closing, the combined entity will operate under the American Bitcoin brand and is expected to trade on the Nasdaq under the ticker 'ABTC.' On Thursday, Hut 8 reported a loss per share of $1.30, below the estimated 24 cents, and sales of $21.82 million fell short of the estimated $33.28 million. Price Action: HUT shares are up 11.1% at $15.43 at the last check on Monday. Image via Shutterstock Date Firm Action From To Nov 2021 Canaccord Genuity Maintains Buy Nov 2021 HC Wainwright & Co. Maintains Buy Nov 2021 HC Wainwright & Co. Maintains Buy View More Analyst Ratings for HUT View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article American Bitcoin Spin-Off, AI Ambitions To Boost Hut 8 Stock: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
31-01-2025
- Business
- Yahoo
Dave Can Profit From Small-Balance Accounts, Analyst Sees Dave As A Breath Of Fresh Air For Average Banking Consumers
Canaccord Genuity analyst Joseph Vafi initiated coverage on Dave Inc (NASDAQ:DAVE) with a Buy rating and a price forecast of $120. The analyst said that Dave offers a refreshing alternative for consumers in search of a bank account and cited a 2023 FDIC survey, which revealed about 14-15% of Americans are considered underbanked. However, being underbanked doesn't necessarily correlate with low income. In fact, the same survey showed that over 34% of households earning more than $75K were still classified as underbanked, the analyst noted. According to the analyst, households avoid traditional banks due to high and punitive fees, leading them to rely on non-bank financial services. This group includes not just lower-income individuals, but also younger adults just beginning their financial journeys. Dave generates revenue from a wide range of consumer groups in ways that traditional banks cannot, because its business model doesn't rely on a conventional net interest margin (NIM) approach. Dave operates as a fully virtual banking platform built on a modern technology stack with a revenue model based on transaction fees rather than NIM. This allows Dave to profit from accounts with low balances while customers only pay for the services they use. Dave has been able to maintain consistently attractive customer acquisition costs thanks to an improved consumer banking experience, opined the analyst. The combination of low customer acquisition costs (CAC), along with double-digit growth in both members and ARPU, is driving solid financial metrics. The analyst notes Dave's fixed cost structure can support significantly higher revenue, suggesting further margin improvements in the future. In response to the CFTC's investigation of Dave's business practices and the consequent lawsuit, Dave has removed optional tipping and express fees for the Extra Cash product. Meanwhile, the analyst expects these adjustments not to hinder the company's current growth trajectory. The analyst notes Dave is tapping into a substantial, largely untapped market of underbanked consumers. The company's market strategy has evolved, its product offerings have been optimized, and the results are now evident in its P&L performance. The analyst expects that Dave's operational leverage could drive EBITDA margins higher, potentially providing a modest uplift to its valuation. Price Action: DAVE shares are trading higher by 3.35% at $100.19 at the last check Friday. Image via Shutterstock. Date Firm Action From To Apr 2019 Maxim Group Initiates Coverage On Buy Nov 2017 Craig-Hallum Upgrades Hold Buy Jun 2015 Dougherty & Co. Downgrades Buy Neutral View More Analyst Ratings for DAVE View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? DAVE (DAVE): Free Stock Analysis Report This article Dave Can Profit From Small-Balance Accounts, Analyst Sees Dave As A Breath Of Fresh Air For Average Banking Consumers originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
