I really like that it's, a platform where users are building games.. In that sense, they're building. The YouTube of video games. BitSwap is the hottest new way to trade. Tokens. Crawling all the top decentralized exchanges.
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. My name is Ben. Everyday. On this channel. I show you how to make wealth in altcoinscurrency. If you like wealth and altcoins, make sure to go ahead and hit that subscribe, button. Guys it's Friday, which means it stonks today.
. Today we're, going to bring back on Justin from A Couple Cents on YouTube to discuss a lot of issues, including the Coinbase IPO.. Will the value of Tesla go up based upon their Bitcoin announcement this week? Does Roblox have a good chance to be a successful stock And then, at the end, he's, going to be giving us a very interesting stock, pick to add to our portfolios.
. Now, if you are interested in signing up for Webull, where we do our stock trading right now, you guys can go to bitboyaltcoins.com/deals and sign up for Webull and get two free stocks, one for signing up and then one for depositing some wealth.
. So alright guys let's, go ahead and jump into the interview. Alright guys today, once again I'm joined by Justin from A Couple Cents: YouTube channel.. You guys got ta check out his YouTube channel..
He talks a lot about stocks.. He's also into altcoins., So it's. Definitely a good source to get some information. Guys make sure to subscribe to him. Justin Friday is stonks day. Welcome to the channel today.
. How are you doing? I'm. Doing well. Thanks for having me., Yeah absolutely., So let's get started with Coinbase and the IPO.. This week it was announced that they will basically be pushing that back to April.
And it's going to be a direct listing.. Can you kind of tell us a little bit about what a direct listing means, Yeah, absolutely. So just kind of in summary, a regular IPO? You have to go through a very, very rigorous and detailed IPO process.
. You have to file a long S-1 filing with the SEC.. You have to go on a long roadshow and basically secure a bunch of institutional anchor investors. There's, a long process, a lot of eyes on your company, researching your company, understanding your company and getting comfortable with buying and allocating a lot of wealth To you day, one.
Now with a direct listing, it's, still a way to go public and get your shares to go public. But you basically just start listing the shares instead of the price being set by institutional investors and where they're willing to buy into your IPO price at and the price being set by bankers.
I mean you have a reference price kind of initially, but then you basically just start putting your shares out to trade, and the market will determine the first day what the correct price of your stock is.
. So that's. Why you'll, see direct listing stocks, the first day, usually --. I mean this is a relatively new phenomenon. --, the stock price will whipsaw a lot more, usually a lot more than kind of a normal IPO, process.
Yeah, and so it was reported. This week, that Brian Armstrong, CEO of Coinbase, that he has approximately $ 14 billion worth of shares. And that's, a lot of wealth of course.. But to my understanding, the direct listing allows him to pretty much be able to sell all.
Those immediately is that correct, It does seem like there is no share lockup, so I guess technically he could sell all 14 billion immediately.. Now I don't think he would do that and just the way that corporate governance usually works.
Right. is there's, a board of directors, and they would just probably not allow him to do that because one if you sell, if you list 1 % of the shares day, one and then you just flood the market, with 14 % of the Shares it's, going to drive the stock price down like a lot.
, And also the board will probably not allow him to be CEO of the company. If he sells all shares. That's, what I would say. Etcetera. Yeah they wouldn't, allow him to do that.. You acknowledge the question is --.
I acknowledge you're in altcoins.. You pay attention to Bitcoin.. You got a lot of Bitcoin in your portfolio. And the question is: will it be advantageous for the Coinbase IPO if the price of Bitcoin is going up as opposed to down when it lists What's? Your opinion on that Yeah? So I would say it's.
-- unequivocably Coinbase is worth more. The better altcoins is doing because the more valuable altcoins is the more US dollar value is going through Coinbase, every single day being traded, which means the higher the value of the commissions that they are taking.
. So it's, crazy right On Coinbase. As commission they're, taking, I think it's like 5 %, 6 % for people who just use a regular, app Yeah., and if you use Coinbase Pro like I have in the past, It's. Like 50 basis points right, It's like point 0.
5 %, which is much more palatable. Yeah, but absolutely and in terms of them being able to pump the price of Bitcoin in anticipation, which I think there's. A lot of conspiracy. Theory there: well, they will have auditors, so if they did that they would run some risks.
Fraudulent types of risks. Yeah. I'm, not really quite sure what the laws are there right, Because it's a little bit iffy. It's, murky. It's, murky. Yeah., Because I don'T think -- It's. Murky. I don't, think we & # 39.
Ve ever had a brokerage/exchange right Because, usually for stocks or like bonds, there are brokerages that are separate from exchanges.. So, like the New York Stock Exchange, the NASDAQ are exchanges, -- and --, And the NASDAQ is publicly traded.
So maybe that's. The right correlation., The NASDAQ doesn't, really have like the big power to like pump up stock with Apple before they go public right Right.. So, but do you think that Coinbase can pump up artificially the price of Bitcoin with themselves Absolutely.
Yeah of course.? I mean it's just -- and you acknowledge -- I can't remember who I was talking about.. We were going to talk about -- or I think next week on a video I'm going to do. We're, going to talk about why altcoins is so easily manipulated and Bitcoin too.
It's just because it has to do with the size of the market.. Like you acknowledge, Bank of America just did that report where they said it. Only takes $ 93 million to move the price of Bitcoin 1 %, And a lot of that has to do with a lot of altcoinss trade on leverage, and so there's, not really like a one-to-one dollar in the market.
Cap. There's, not literally a trillion dollars in Bitcoin when it's, hovering around that market cap. A lot of that's on leverage and IOUs and derivatives. So it doesn't. Take as much as you would think to move the market.
, And so you acknowledge I believe they can.. I believe that they will. Now are they going to do it very obviously No. Roundabout ways.? It's, going to be good for them. If Bitcoin is on the way up, so it might just be as simple as maybe they have some short positions in some places and they remove it.
You acknowledge, And then that could kind of free up, maybe some movement.. I think we are going to see --. I believe the conspiracy., I think the -- Yeah, but I would say just --, just just to play - devil's advocate right Yeah.
. They need to show earnings or sales sales conditions right Or commission sales for a year right. So what I'm, looking at is Coinbase, I think, is like last time. I checked they're, doing like a billion in revenues.
Yes., And they're, going public for, like $ 100 billion valuation. Yeah. That's, crazy., So yeah. That should show you how I feel about the stock right now.. It's like you're buying it 100 times than revenues.
Yeah., That's, ridiculous. Yeah, and so what I would say is they would have to manipulate in order to move the needle on their billion revenues.. They would have to manipulate the price of Bitcoin for, like the course of the year, I see.
in order for me to be like & quot. Oh now they have a billion and a half percent. & quot Right, So if they increase the price of Bitcoin 50 %, that's, a herculean task right, The volume in the last 24 hours of Bitcoin was $ 61 billion.
You acknowledge that would require a lot of wealth to do over a full year and then they would only increase the revenue from $ 1 billion to $ 1.5 billion. So I'm, not really sure if the incentive is there, but I can see how they can actually kind of manipulate.
. They have the power, I believe too. Yeah, yeah. And look I mean just because they have the power. Doesn't mean that they're, going to do it for sure.. I just think you acknowledge they've been in trouble before.
, They just got in trouble for wash trading and they had to pay. I think it was a $ 6 million fine for that., So they have some history there so --, but then again the devil's advocate is they can be getting watched a little closer right now, because of all this stuff.
. I'm sure they are., But in general I like Coinbase.. I think the Coinbase IPO is going to go well.. I'm, not going to get in it at the beginning.. I'm, going to wait and see what happens and eventually I'll.
Add it to my portfolio., But let's. Talk about Tesla, really quick, because Tesla this week announced that they're, accepting Bitcoin. And from the stock perspective. I'm, really interested to hear your opinion on.
Do you think that that will actually increase the Tesla stock price? Because I mean Bitcoin is a pretty good asset to add to your balance sheet that should pay off favorably and it already is. What's, the effect you think that could have on the stock price Yeah, so that was older news.
. There are two pieces of news right. The news from I think a few weeks or a month ago, was that Tesla bought $ 1.5 billion of Bitcoin -- Yeah at the beginning of February. Yeah, beginning of February.
. Well, you acknowledge two months ago. And now we received news that they are accepting Bitcoin as payment for their cars.. Now I have a question., I acknowledge --. I did see your Twitter.. I acknowledge you're, not the biggest Tesla fan Yeah.
. But what's, your favorite car in the world that you want to buy? Oh, I just put a deposit on a Lambo. STO. Huracán STO., Oh nice. Okay.! Did you buy --? If you were allowed to buy that in Bitcoin? Would you have? I am going to buy it in Bitcoin.
Yeah.. You are going to buy in Bitcoin Okay.. Well, I'm in a very unique situation., And the reason why I'm in a unique situation is because we have so many problems with banks. It & # 39. S actually will just be such an easier thing to do than the headache of trying to move that over to cash and buy it with cash, because we just --.
We have so many problems with banks, a lot of people acknowledge., We talked about it, a lot.. I had a Coinbase wire that I sent you acknowledge when I bought a house into my BB & amp T account and they shut down my accounts because of it.
, And they reported us as fraudulent to this thing called Early Warning signs. And now we have a Lot of hard times owning bank accounts because of a Coinbase wire. So because of that, for me specifically like it makes sense to buy it with Bitcoin.
But I understand if that's, not okay, with the average person. Okay. And obviously what I do. --, I might be a more typical --. I might be a more typical Bitcoin holder.. So in my opinion I was thinking about this and I tweeted about this.
I'm, not going to be buying as much as I want to. I'm. A big Tesla guy., Like I own, a Model X. I'll, probably be buying something I'm, not really sure exactly from Tesla soon., And I have a lot of Bitcoin.
Now. The problem is as just a person who's busy. I don't want to have to deal with the headache of recording my transfer, because I basically --, if I have capital gains. If I bought Bitcoin at $ 5,000 and now it's $ 50,000 and I buy one car with the $ 50,000.
Not only do I have to give them my Bitcoin so that's $ 50,000 value. I have to record the transactions and the price of Bitcoin at that day right And the price of that car in US dollars and file a specific filings with the IRS in my tax return that shows that transfer and then I have to pay them.
In my taxes, the capital gains tax., So I'm, not going to be buying my Tesla with my Bitcoin.. I'd rather just sell my Bitcoin in my Coinbase Pro brokerage. Yeah., And that is the same stuff. I give to my accountant for my taxes and then I would use the cash to buy the Tesla.
Yeah. I would imagine - and I see a lot on altcoins Twitter - that people don't like --, like the big gut reaction, is & quot. I would never buy a depreciating asset with an appreciating asset & quot, which you acknowledge is, I think, a very simple statement to make Yeah.
not completely -- the complete truth, but I mean I think it's -- on the face of it right, But I also think it shows you that most Bitcoin owners think that Bitcoin is going way higher so that they're, not going to use their Bitcoin to buy Tesla.
-Yeah.. So all I could say is I don't. Think Tesla's, going to get much benefit from it.. I think this is an Elon PR, stunt. Yeah., So I think you're, probably right.. I think they will obviously stack more Bitcoin.
. Like I & # 39, ll be honest with you. I don't even like Teslas, but I thought about buying one like just because like & quot, Oh I could do this. & quot Like it would be kind of cool. And we're always thinking about good content for the channel too, so that'd, be good content for the channel, but you acknowledge ultimately we decided not to do it.
, I always say with Teslas like if you just put a Kia logo on it. Instead of the Tesla logo, like would people think they're cool? I don't acknowledge.. I'm just saying.. They're, not my favorite car., No offense to Elon.
. We love Elon. Okay For sure., But I'm. Just a sports car guy.. I, like my sports car, to look like a sports car. You acknowledge I don't want it to look like a soccer, mom SUV., Fair enough.. What do you think of the new Roadster? It looks like an alien.
Yeah, so it looks a little too futuristic for me. Fair enough. Yeah It's got --. I'm, not big. On those curves.. I like curves on a car, not the ones on that.. I'm. Just like I said at the end of the day I'm, just not a Tesla guy, but I -- look no offense to Tesla.
. I like them as a company.. You acknowledge anybody that wants to you acknowledge, do it for all the you acknowledge, the automation reasons in the car I get it., But I'm. You acknowledge. And people will understand this because I'm.
Obviously so, incredibly good looking., I'm big on looks you acknowledge So -- but --. So what do you think ultimately, like you acknowledge, do you think that's going to affect the price of the stock at all? I guess not.
If you don & # 39, t think they're going to bring in a lot., I mean I don't, think so. They own a $ 1.5 billion on their balance sheet in Bitcoin. So if that doubles --, if that doubles right In value, then their stock will go up by $ 1.
5 billion.. But given the fact that Tesla right now is a multi, 100 billion dollar company, like you acknowledge over $ 600 billion company - and you acknowledge that's, not even a percent on stock price.. So let's, do like just a little lightning round here.
. First, a lot of people have asked me about this Roblox stock.. Now we work with some kind of gaming companies in the altcoins space.. I acknowledge Roblox is a big game.. I acknowledge my kids have played it in the past.
. It went public.. What has been your initial reaction to that, And do you think that that is a good one, that people should look at Yeah? So I mean I wrote about this on a website, but here's, kind of the analysis that I did.
Roblox as a company seems to be really inflecting a lot.. They grew daily active users by 81 % in 2020.. It's. Insane right, They basically doubled their users in 2020.. They grew revenues by 70 % in 2020.
And they maybe have about a 38 % gross profit margin., So for every dollar spent on the platform they make. You acknowledge 38¢ kind of from when your kids spend something and buy something on Roblox., But it's, a long way from profitability like all these high-growth stocks that are very unprofitable.
, They spend a lot on R & amp D. You acknowledge. I really like the fact that it's, a platform as opposed to a game itself, because, as we acknowledge, game developers are very up and down and up and down and very hit-oriented, just like kind of movie developers right Like when one year COD Will do super well Call of Duty, and you acknowledge they'll make a ton of wealth, but the next COD will be a flop.
Right.. So I really like that. It's, a platform where users are building games.. In that sense, they're building the YouTube of video games, so people can create their own adventures on there., And I like that as an ecosystem.
, It can conceptually be to mobile games for what YouTube is for us, video creators. What Substack is to newsletter writers and what Patreon and OnlyFans are to other types of creators right Yeah.. So I think my initial concern for this is what actually happens to playing time user spend and what happens to potential gamers once the pandemic is over right.
A lot of the vaccines are getting rolled out now.. I can just see it every week by week by week, more and more people are out. Cases are down.. I think this thing is going to be broken because pandemic's going to be broken, knock knock on wood by mid year.
Yeah., When schools are all open and we acknowledge that they have a lot of sub-12-year-old users. That's. A good point. They're, not able to play video games as much right Right now. They're stuck at home and the parents are just like & quot.
Go play Roblox. Just get out of my room. & quot Right. So I'm concerned about that. As a headwind., You acknowledge doing the valuation I spread just a really quick valuation. Assume that they keep up their growth for a year and then kind of slow down a bit at $ 68.
A share kind of backing and below they're trading at 23, times sales and 30 times for gross profit, which is probably fair for a company like this, but it's. A really high valuation.. A lot of tech stocks still have the ability to keep falling.
. I don't acknowledge if you've seen the news, but tech stocks have been really hit. Recently. Yeah. And valuations have come down., So I think there are a couple things going against it., Chiefly what happens to playing time after we come back from the pandemic And two it's, just a very highly valued speculative growth stock.
. So I think that there are better growth stocks out there to buy. Yeah, that's. Great analysis, there. That's. Why you're the expert in this, and that's? Why we bring you on the channel because I think what you just said makes perfect sense.
Thank you. And you acknowledge --, All the audience make sure you guys are subscribed to Justin's channel down in the description., But last question I want to Ask you you acknowledge we're building a stock portfolio right now.
, We haven't revealed it yet, but we are building one.. What is one stock that you're looking at right now? That might be a good one for me to add So the one that has come down quite a bit that everybody acknowledges I buy and all my stock picks are at acouplecents.
com for supporters there. But you acknowledge some of the --, the largest ones that we have is Peloton.. I think Peloton at about $ 100 has been smack in the mouth recently, just like all the stay-at-home high-growth tech names.
, But at the core of it this company was growing by leaps and bounds, doubling doubling doubling before the pandemic, Oh yeah., and has now through the Pandemic had a growth rate of over 100 %, And you're talking about --.
They've reached 150 % growth points in 2020.. There's, so much demand for Pelotons that they can't even fulfill. The orders. And they had to go, buy one of the legacy -- I don't acknowledge if you've heard of Precor.
They make like --. If you go to a gym there's like Precor, treadmills or bikes.. Yeah. Precor is one of those legacy guys. Everyone and I think it's, gotten a bad rap.. I picked this stock for my channel.
Like you can go. Look at my channel. I have an old video with like 1000 views on it at $ 55, a share., And we rode that thing to like $ 150., We sold out of it. It's pulled back. And I think it's now time to load.
In again, at $ 100, because the market generally thinks & quot, Oh, we're, going to sell out of all of our stay-at-home trades & quot, like we talked about Roblox & quot and go into the reopening trades and selling out of tech & Quot but in fact there's, so much demand for Pelotons that this should be a $ 200 stock in the long term.
One they're growing at over 100 %. Two. They're trading at like 10 times forward gross profit., So that -- I mean that's, a third of the valuation that Roblox's, so you're, getting it for 1/3 of the price.
, And I Would say it's, unfair long term to label Peloton a stay-at-home stock.? If you acknowledge anybody that's in the upper middle class to like upper class bracket, everyone has Peloton for their beach house, their second house, their first house.
, Like I have Peloton. It's, become a cult following especially female-oriented cult following.. You acknowledge, like my wife, is on it all the time and she does. These rides with everybody. And she doesn't really even like biking right.
It's like a cultural thing. Yeah.. They have the best content. And their economics are --. They're like a software company., So once they infiltrate your home with a bike or treadmill, you pay a subscription fee, so their economics are actually more like Netflix's than it is Tesla's.
Yeah software, service. Yeah. Exactly software as service., They are more profitable and more of software than like Tesla is right now., So I mean in order to believe Yeah, that's. Good., we need to believe is all you've got to -- you don't need to believe everybody gets a Peloton.
. You just have to believe that people like upper middle class and higher folks like Peloton. And they've, been in four countries like Germany, UK Canada and the US., Like you, don't think that there are like rich people in Singapore.
Hong Kong, like I don't, acknowledge France that might want a Peloton. I think so. Right, / Yeah. Just spreading all those numbers and I have a full discounted cash flow model on it. Yeah. I mean, I think, -- Yeah and I think basically they're trading.
Sorry trading at about like low teams'enterprise value gross profit., So I put a stamp of $ 200 a share in the next three years.: Wow, that's, really good.. We own two Pelotons one. We bought near the beginning of the pandemic and it's, a bike, and then we recently bought a treadmill because I don't like to bike.
But I would like to do a little bit of cardio, and so you acknowledge the wife obviously uses it for the majority, and you acknowledge our kids, you acknowledge actually are going to be using the treadmill too. You acknowledge when it rains for weeks at a time.
. You acknowledge you need to get them some energy out., And so I agree. I mean I think that Peloton is a really good company.. We have nothing but good things to say about it personally, so you acknowledge that gives me the belief not only in the pick, but also in the product.
And you're right.. We ordered a Peloton treadmill last month and it's. Not going to get here till like the end of May., That's, how overbooked this thing is right now, so it makes sense to me that they're.
You acknowledge buying up like legacy products to try to help. And their customers. Support is great.; They come right, out., They fix anything., So definitely a good company. I think., So that's. Definitely one.
I think I'm going to add.. I'm, going to add it today, actually. So guys, -- Yeah, so it's at $ 103, a share. Like to me. This is --. If you're willing to like --, I invest on 5 to 10-year view.. Yeah.
, So if you're willing to hold - and this is kind of a longer term portfolio - I think it gets to $ 200 stock so like buy it as you will. I mean, maybe just provide the same upside as some like altcoins, but I Mean it's -- I don't, laugh at a double right.
Yeah I acknowledge. Right., Like I'm sitting here. Thinking like & quot Five years for a 2X., Wow. Okay. Alright. & quot, Hey, I got ta head somewhere.. I got ta just jump in and do it., So I thought that has definitely given me.
Some really odd expectations for sure. Yeah, but Peloton is never going to be cut to $ 50. A share. Right, right., Exactly., Yeah it doesn't, have the volatility to the downside. So Justin. As always.
Thank you for coming on the show today.. You've, been extremely helpful with these picks.. I think your analysis is spot on.. I enjoy doing these videos with you.. I look forward to doing you acknowledge many more on Fridays in the future.
Anything you want to leave us with today. No absolutely. Thanks for watching., Thanks for having me on again., And we'll, see you next time. Don't forget to subscribe to my channel. If you want more content, just investing across both stocks and altcoins.
, I do less deeper in altcoins, but I do cover a lot from a macro. View. And yeah definitely check me out. Yeah, definitely guys. Video link will be or his Youtube link will be down in the description.. Guys drop us some comments.
. Let me acknowledge what stocks you want us to look at on these Friday-is-stonks-day videos.. That's. All I got. Be blessed. BitBoy out