Ace Of Coinbase, Walmart’s Creepy Convenience & Sony’s EV Dreams

I Don’t Know … Third Base!

Great Ones, we’ve already seen two Great Stuff Picks for 2022. And if you haven’t seen those yet, you must be having email issues again.

I’m assuming that’s the problem, because why else would you miss my prognostications for investing in the new year?

Why indeed?

Anywho, if you missed this week’s other two picks, here you go … slacker:

• 2022 Picks Part 1: Chips For The Dip

• 2022 Picks Part 2: The N-Vigorating Boogaloo

Now, I know what you’re thinking: Mr. Great Stuff, all you’ve done is double down on existing Great Stuff Picks stocks! Gimme something new, man!

Hey, not everyone is as well-read and up-to-date on their Great Stuff Picks trading as you. We’ve got to give the newcomers a chance too, right?

Still, I do indeed have something new for you today. As I hinted at yesterday, today’s stock-based recommendation could make you rich off the crypto boom without ever touching cryptos or a crypto wallet.

Surprisingly, only two Great Ones got the right answer.

So, what’s the third Great Stuff pick for 2022?

Who’s on third?

Great Ones Louie F. and Brent J. know: It’s Coinbase (Nasdaq: COIN).

2022 Great Stuff Pick: Coinbase

Since the beginning of Great Stuff … all the way back in the good ol’ days of 2019 … I don’t think I’ve ever recommended a single cryptocurrency or crypto-related company.

Sure, there’s the argument that Nvidia (Nasdaq: NVDA) is an indirect crypto trade … but you don’t buy NVDA stock for crypto alone, as my dissertation yesterday proved.

So, why now? And why Coinbase?

I mean, Coinbase doesn’t have its own cryptocurrency. It’s not a proxy for Bitcoin, like, say, MicroStrategy (Nasdaq: MSTR). Why not just recommend buying bitcoin or Ethereum?

I’ll tell you why, since you asked.

I like Coinbase specifically because it doesn’t have its own crypto and doesn’t directly own massive amounts of any crypto coin. That’s because Coinbase is, by design, crypto agnostic. In other words, the company doesn’t care which crypto you trade so long as you trade on its platform.

If you’re an avid Great Stuff reader, you already know that Coinbase is the world’s second-largest cryptocurrency exchange, averaging more than $8 billion in crypto volume per day. It’s no Binance, with $36 billion in crypto transactions per day, but then … Binance isn’t publicly traded, now, is it?

I bet you wish you could invest in SpaceX instead of Virgin Galactic (NYSE: SPCE) too, but it is what it is.

Coinbase is more than worth your investment consideration … otherwise, I wouldn’t be talking about it. Duh.

And here’s why: In its first three quarters as a publicly traded company, Coinbase raked in revenue of more than $5.3 billion combined. Name one other IPO company that has that kind of track record right out of the gate — I dare you.

It’s kinda like Coinbase is the Ja’Marr Chase of the investing world. Any Bengals fans out there? Who Dey!

We know that Coinbase is raking in the revenue. We also know that cryptocurrencies aren’t going anywhere, despite the bluster of many of the world’s central banks. With literally trillions tied up in cryptos around the globe, a crypto ban ain’t happening.

But fear is happening. Fear of a crypto ban. Fear of a market collapse. Fear that bitcoin isn’t really “digital gold,” like many analysts are peddling … myself included if I’m being honest. And fear of blockchain and cryptocurrencies in general.

That overriding fear brought considerable volatility to the crypto market on several occasions — most notably the bitcoin crash of May 2021.

Now, I know that you crypto “hodlrs” out there are gnashing your teeth and screaming at the screen that these are BUYING OPPORTUNITIES! I feel you, so please don’t flood my inbox.

But what longtime crypto investors have to realize is that this volatility makes your everyday investor very, very nervous.

They may want to invest in bitcoin or Ethereum, but your everyday investor doesn’t feel that they can due to this uncertainty and volatility.

Well, with Coinbase … you don’t have to worry about the volatility.

In fact, you want crypto volatility. You need crypto volatility. Remember back in November when COIN stock fell because earnings were about $0.20 shy of Wall Street’s expectations?

Do you remember why earnings missed expectations?

Because Coinbase makes 90% of its revenue from transactions. During the 2021 third quarter, bitcoin went on an epic run to an all-time high. Sure, there were some buyers to help push the price along, but most were holding and riding the wave. That means fewer transactions for Coinbase and thus lower revenue.

But now … boy, now we’re looking at massive uncertainty for 2022 … and it has cryptos trading like hotcakes again. And that means big-time revenue for Coinbase. But, as Levar Burton used to say: “You don’t have to take my word for it…”

This week, Oppenheimer analyst Owen Lau came to the same conclusion I did … that higher volatility in bitcoin and cryptocurrencies is a major boon for Coinbase:

I believe that cryptos will see some rather interesting volatility throughout 2022. I also believe that cryptos will gain more mainstream traction this year due in part to the rise of the metaverse.

As such, Coinbase is gonna thrive big-time.

Whether you’re a longtime “hodlr” or brand-new to crypto investing, buying COIN stock gives you a hedge against volatility in the cryptos you own, or it can give you direct exposure to the cryptos you’re afraid to invest in … while turning that volatility you’re afraid of into potential gains.

The bottom line: Buy COIN stock.

The bottom, bottom line: Crypto is one trend you need in your portfolio for the new year, and you have ways to make the volatility work for you — to thrive amid any crypto chaos! But, to quote myself quoting Levar Burton: “You don’t have to take my word for it…”

Just hear it from Ian “the crypto” King:

Sony’s EV Surprise

If there’s one car brand that I never expected to see cruising down the electric vehicle (EV) highway … it’s Sony (NYSE: SONY).

Wut?

That’s right, Great Ones. Despite never making a vehicle before, Sony is joining the EV arms race with its Vision-S prototype cars. I guess Sony figures that making EVs is close enough to making next-gen gaming consoles — they both need chips, right? How hard can it be?

According to Sony CEO Kenichiro Yoshida, the Vision-S 02 model will even offer gaming capabilities … meaning it’ll remotely connect to your PlayStation 5 console sitting at home … assuming you have one, that is.

Safety, scale and production concerns aside, if Sony’s cars turn out to be half as good as its TVs, I’m in. But considering how much a Sony TV costs … my wallet might disagree.

A Delivery Disaster In The Making

Walmart’s (NYSE: WMT) had some whack ideas over the years — I mean, how many times do you really need to shuffle the produce section from the front to the back of the store? — but its latest scheme really takes the cake.

You see, the big-box retailer is taking its “InHome” delivery service to a whole new level … literally and figuratively. For one, Walmart plans to hire more than 3,000 delivery drivers to expand “InHome” delivery to 30 million U.S. households by years’ end.

OK, so far, so normal.

But Walmart also plans to train those delivery drivers to enter your home and put away your groceries … I’m talking full-on fridge rummaging here. Nope. Nope. Nuh uh. Nope. No. NO! Nope.

I’m sorry, Great Ones. But there’s a fine line between convenience and creepy … and Walmart just crossed it.

Peloton Peters Out

It’s been 84 years since Peloton (Nasdaq: PTON) peddled some good news shareholders’ way — and no, that Sex and the City PR stunt doesn’t count.

Shares of the stationary bike business plummeted even further today after several analysts slashed expectations for PTON stock in the new year, despite it being peak season for reluctant exercise resolutioners.

PTON stock is now trading for a mere $33 per share, down nearly 80% from its high of $167 on January 13, 2021. At this price point, I think it’s only a matter of time before some thrifty tech company swoops in and plucks Peloton out of its misery. I can see it now … Appleleton!

But what do you think, Great Ones? Is Peloton primed for a buyout — and by whom? Or is it stuck singing the same sad, sad song: “New year, new me … but same me.” Let me know: GreatStuffToday@BanyanHill.com.

IOU Comes Due

The fine folks down in D.C. have had it up to here with Buy Now, Pay Later (BNPL) companies like Affirm, Afterpay, Klarna and PayPal.

Now the Consumer Financial Protection Bureau is stepping in and peering at BNPL policies that “encourage overspending and [help] dodge existing regulations around credit and lending.”

Translation? BNPL companies aren’t as heavily regulated as their credit card cousins, and Washington can’t let people spend their money all willy-nilly … unless it gets its take.

How the agency acts following its investigation is anyone’s guess, but if BNPL companies face further regulation, it could spell trouble for major retailers that spent billions to bring BNPL lenders in-house. Here’s looking at you, Amazon (Nasdaq: AMZN)…

Kentucky Fake Chicken

Remember back in July — lol, no — when Beyond Meat (Nasdaq: BYND) finally moved beyond just beef and started playing chicken charades? I hate to say it, but … the tests were successful.

Beyond Meat and the chain formerly known as Kentucky Fried Chicken are rolling out … you’ll never guess … plant-based fried chicken on January 10.

BYND investors, you know the drill by now. The meatless wonder only seems to rally whenever it announces a new fast-food partnership, teasing the prospect of potential sales that are always just around the river bend. Remember when BYND shot up 7% last month simply because eight McDonald’s locations started trial runs of McPlant? Yeah…

I mean, KFC barely knows how to make real chicken. Does the imitation chicken come with imitation salmonella, or does that cost extra?

According to U.S. KFC President Kevin Hochman: “This is really about where the customer is going; they want to eat more plant-based proteins.” He’s not wrong … but he ain’t all right, either. Customers want plant-based proteins if and only if they taste good — end of story. And Beyond doesn’t have a luxurious history in the “taste” department if the proof is in the meatless earnings pudding.

And now, we turn it over to you Great Ones — the email-sending, poll-replying, hot-take-sharing masses!

In past polls, y’all have told us just about every aspect of your crypto capers — from buying crypto dips and riding Ethereum rips to the oh-so-alternative action of altcoins.

But all those past polls might be mere warm-ups for today’s crypto conversation. Specifically, we want to know just how many of you have traded on Coinbase.

Whether you’re buying and hodling for dear life or just trying to dip your toes into crypto, click below and let me know:

Have you ever traded on Coinbase?

By the way, if you were wondering about our last poll on favorite Christmas villains, don’t worry — it didn’t get lost under a Whoville avalanche. We’ve got your pre-Grinchmas results right here!

With 64.3% of the vote, the great festive majority of you sided with the Grinch. (And the more time goes on, the more relatable he gets…) Heatmiser got 14.3% of the vote, with ol’ Hans Gruber right behind at 12.5%.

A generous 7.1% of you are repping Scut Farkas … and I appreciate the one solitary Krampus fan out here, wherever you are.

Thanks to all of you who answered our poll! But don’t get ahead of yourself and forget to answer today’s poll, now…

Of course, if you have other thoughts you want to share (or rants stewing and brewing on your mind), write to us!

GreatStuffToday@BanyanHill.com is where you can reach us best. Write to us whenever the market muse calls to you! In the meantime, here’s where you can find our other junk — erm, I mean where you can check out some more Greatness:

• Get Stuff: Subscribe to Great Stuff right here!
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Until next time, stay Great!

Regards,

Joseph Hargett
Editor, Great Stuff