Should You Buy The Coinbase IPO?

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This week, Tracey has gone solo to talk about the hottest IPO of 2021 (so far), which is the listing of Coinbase COIN.

What’s Your Investing Plan?

First, you should ask yourself what your plan is.

1.     Are you a trader?

2.     Are you an investor?

3.     What are your investing goals and does this IPO fit into that plan?

Lessons from the Facebook IPO

There’s a lot of hype around the Coinbase IPO.

There was a lot of hype in 2012 around Facebook’s (FB - Free ReportIPO as well.

Remember all the investors buying it so they could pay for their children’s college education with it?

Everyone wanted to own shares of Facebook. It IPO’d hot but within a month the shares had tanked over 50%.

It took a year before the shares re-took the IPO levels.

Long-term investors could buy at a lower price as long as they were patient.

No Sure Things

A similar story played out in Snap (SNAP - Free Reportand Tilray (TLRY - Free Reportin recent years.

Other recent IPOs have been strong out the gate, like Airbnb (ABNB - Free Reportwhich is up 21% in 2021 but it only went public in December 2020.

Some IPOs never pull back, however.

Google GOOGL, now known as Alphabet, went public in 2004.

Since its IPO, it has been one of the top-performing stocks on the S&P 500 and is up over 4,000% in the last 17 years.

In full disclosure, Tracey owns shares of FB and GOOGL in her personal portfolio. No, she did not buy either one at the IPO.

Disclaimer: Tracey Ryniec is the Value Stock Strategist for ...

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