We recently compiled a list of the Jim Cramer’s Lightning Round: 8 Stocks to Watch. In this article, we are going to take a look at where Coinbase Global, Inc. (NASDAQ:COIN) stands against Jim Cramer’s other stocks.
Jim Cramer, the host of Mad Money, recently shared his insights on several key topics. He discussed the recent turmoil in the pharmaceutical sector, which followed the news that President-elect Trump is considering Robert F. Kennedy Jr. for the position of Secretary of Health and Human Services.
Cramer pointed out that the pharmaceutical industry took a significant hit after the announcement, but he believes this may present solid buying opportunities. Cramer acknowledged that RFK Jr., whom he humorously referred to as “Bobby Jr. for some Sopranos flavor,” has a strong anti-big pharma stance, which could be a concern for the sector. However, Cramer emphasized:
“… There’s a whole federal bureaucracy at HHS and frankly, I don’t think Trump will let him wreck a pretty important sector of the stock market.”
READ ALSO Jim Cramer Is Focused on These 15 Stocks This Week and Jim Cramer Talked About These 11 Stocks Recently
Cramer further addressed the potential confirmation of RFK Jr. as Secretary of Health and Human Services. He suggested that while there is a debate about whether the Senate will provide confirmation for him, he believes RFK Jr. will likely be approved. However, Cramer remained less concerned about RFK Jr. causing significant damage to the pharmaceutical industry, noting that he doesn’t expect him to have much success in pushing his anti-vaccine or anti-pharma agenda. Moving on to broader market trends, Cramer commented:
“After the initial Trump rally euphoria in the wake of the election, we quickly transitioned to a Trump rally hangover last week with the averages getting clobbered.”
He highlighted that semiconductor stocks were among the hardest hit, partially due to the typical tech sector sell-off when bond yields rise, as they did last week. Cramer also expressed concern, saying:
“With the election results from earlier this month and the second Trump administration coming in about two months, I am very worried about companies that are hostage to the Chinese economy.”
Finally, Cramer turned his attention to autonomous vehicles, suggesting that while the Trump administration’s plans for self-driving cars may sound ambitious, they could be more difficult to execute in practice.
He pointed out that a variety of state and local governments would need to align on new regulations, and the notion that the federal government could allow self-driving cars nationwide with a simple executive order seemed “just plain fanciful.” Despite this, Cramer advocated for owning TSLA, not because of any regulatory changes under Trump, but because he believes in the vision and leadership of the company’s CEO, Elon Musk.
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 18 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A shot of someone securely accepting crypto assets as payment, showcasing the company’s payment solutions.
Coinbase Global, Inc. (NASDAQ:COIN)
Cramer called Coinbase Global, Inc. (NASDAQ:COIN) an “up stock” and said:
“Coinbase is what I call an up stock. It’s just an up stock. You’re not gonna stop it. Palantir’s an up stock. Coinbase is an up stock. Robinhood’s an up stock. These are stocks that there are buyers every time they pull back and there probably will be to year end. Coinbase is a winner.”
Coinbase (NASDAQ:COIN) offers financial infrastructure and technology for the crypto economy, providing a primary financial account for consumers, a marketplace for institutional crypto transactions, and tools for developers to build and accept crypto payments. In its third-quarter report, it posted a net income of $75.5 million, or $0.28 per share. While these results were positive, they fell short of analysts’ expectations.
Revenue for the period increased significantly year over year, reaching $1.21 billion, up from $674 million during the same period last year. However, it still did not meet analysts’ projections. A significant portion of the company’s revenue comes from transaction fees, but in Q3, transaction revenue saw a decline of 27% from the previous quarter, dropping to $483 million. Additionally, subscription and services revenue also experienced a decrease, falling by 7% to $556 million.
Despite these setbacks, Coinbase (NASDAQ:COIN) management expressed satisfaction with the company’s progress toward diversifying its revenue streams. They highlighted that subscription and services revenue is on track to surpass $2 billion for the year, showing the effectiveness of the company’s long-term strategy.
During the earnings call, management also discussed the challenges the company is facing in the fourth quarter. They noted that the outlook for subscription and services revenue in Q4 is impacted by a 10% drop in Ethereum prices in October compared to the average for Q3, as well as the effects of lower interest rates.
Overall COIN ranks 3rd on Jim Cramer’s list of stocks to watch. While we acknowledge the potential of COIN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than COIN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
