3 Crypto Stocks to Buy Ahead of a Crypto Rebound
Dismal performance in the crypto market has not only impacted cryptocurrencies themselves, but also companies that incorporate these assets into their business models. The landscape in crypto seems to change by the day, but stocks like Coinbase (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA), and Block (NYSE: SQ) are best positioned to capitalize on a potential rebound in cryptocurrencies.
Neil Patel (Coinbase): With shares down a whopping 78% in 2022 (as of July 12), Coinbase has followed the significant weakness that has plagued the broader crypto market. But the company has proven that it can thrive if conditions are right, making it a great stock to own in a turnaround scenario.
Coinbase's business took a turn for the worse in the first quarter, which is partly why the stock has taken such a beating. In Q1 2022, the company generated 87% of its total sales from transaction fees that are dependent on trading volume primarily from retail customers on its platform. Unsurprisingly, as the entire market for digital assets crashed, so did interest in cryptocurrencies from investors. And this means less activity on Coinbase's network, resulting in net revenue of $1.2 billion in Q1, down 27% year over year.
Source Fool.com
