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Why is Coinbase specifically being singled out? Google went down from $3000 to $2270 in recent months. Affirm is down 27% ... today. Is this because HN was cy
by alephnan 4y ago
Why is Coinbase specifically being singled out?
Google went down from $3000 to $2270 in recent months. Affirm is down 27% ... today.
Is this because HN was cynical and hating on Coinbase that it would go no where and then it did?
- thematrixturtle 4y agoI think you answered your own question there: Google is down 25%, Coinbase is down 3x that at 75%.
- alephnan 4y agoGoogle is in the S&P500.
- altdataseller 4y agoAnd? That’s not solace to anyone who owns COIN and could’ve bought GOOG instead.
- edrxty 4y agoGoogle is "propped up" by index funds*. Everyone who isn't an edgy reddit wsb/crypto meme lord has been told over and over to buy SPY et al with religious devotion and take the "guaranteed 6/7/8/9/10%" annual returns to a happy retirement. They tend not to touch their portfolios until things get super ugly, which we may see soon. *propped up is a bit complicated here, people are just buying these bundles of corporations without making any value judgement on them individually. More realistically though, Google is the one propping up a bunch of companies that aren't as actively traded but are still on the index. People you've never heard of like Leidos Holdings, or companies that make you deeply question the contents of the index like Bath & Body Works, Inc. and Norwegian Cruise Line Holdings Ltd.
- esoterica 4y ago> Google is "propped up" by index funds* So is Coinbase. Total market funds are the default index funds most people use, not the S&P 600.
- cko 4y agoBy propped up, do you mean index funds are affecting price discovery? Because from my understanding that's not how it works: https://www.pwlcapital.com/there-is-no-such-thing-as-an-index-fund-bubble/ https://www.pwlcapital.com/there-is-no-such-thing-as-an-inde...
- alephnan 4y agoOr just hold CASH if you don't want risk. No one holds the sentiment that Coinbase or growth stocks is a risk-free investment. Google on the other hand was held to the esteem of being cash / better cash equivalent. It's not.
- SamReidHughes 4y agoI can't read OP's mind, but their earnings call is tomorrow. Coinbase is a very successful business with actual earnings and a large profit margin, it's just people's opinions of its future income that have changed.
- ripper1138 4y agoVery successful is a stretch. It’s a transactional business for cryptocurrency. Their large margin depends completely on inflated crypto prices.