The Coinbase (NASDAQ:COIN) IPO this afternoon is huge for the cryptocurrency world, bringing legitimacy and mainstream visibility in a big way. In essence, it is the marriage of cryptos and the traditional stock market. And in the world of traditional stock trading, Jim Cramer has a lot of sway. So when Jim Cramer calls the Coinbase IPO “the real deal,” you know that the moment is pretty important.
Coinbase has had an astonishing Q1. The company pulled in $1.8 billion in revenue, upped its net income from tens of millions to nearly $1 billion, and tripled its user base from Q4 2020. Naturally, with growth that jaw-dropping, analysts are having a hard time coming to a consensus on the company’s valuation. Nasdaq slapped a $250 reference price on shares ahead of the IPO, giving COIN a valuation of $65 billion.
But, some experts say the valuation could be much higher, north of $200 billion in some cases.
Jim Cramer Expresses Support Ahead of Coinbase IPO
Jim Cramer just so happens to be one of those bulls who thinks Nasdaq is underselling COIN. This morning, Cramer tweeted exactly his thoughts about the value of COIN stock:
We like Coinbase to $475
— Jim Cramer (@jimcramer) April 14, 2021
Cramer’s price of $475 sits prettily among a whole herd of analysts. Cramer has doubled down on his positive feelings toward Coinbase as well. Yesterday on Mad Money, Cramer had called the Coinbase IPO, “the real deal.”
Why does Cramer, like so many others, have such faith in COIN?
Cramer detailed his beliefs further on the program last night, explaining that the wild appetite that investors are showing for the industry is the biggest draw. “You don’t have to be a believer in crypto the currency to be a believer in crypto the investment,” he tells viewers. In other words, even if you are not a huge fan of Dogecoin (CCC:DOGE-USD), Cramer says you should recognize that there could be big money to be made with COIN stock.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.
