You may have heard the coinbase hater is very much saying well, there's so much inside of selling. Oh, my goodness, the ceo sold 70 of his stock, the cfo sold whatever 50 60. Of this talk, somebody sold 100 a lot of nonsense. Let me clarify exactly the percentages, so the ceo and the founder who actually walked away from millions and tens of millions in airbnb brian armstrong.

By the way, i love that name, so brian armstrong actually sold 70 of his class. A shares approximately 700 000 shares for about 300 million dollars. That's the first money he ever met from this company, but you got ta understand that this dude has a lot of class b shares that the mainstream media is not telling you about which constitute about 98 of his shareholding so effectively brian armstrong sold about two percent Of his entire stock after the company went public, so not exactly as reported that 70 percent is extremely misleading. Brian armstrong is still holding on to 98 of his shares only selling a fraction to get some ching.

You know i can understand that as a human being who dedicated his life. For this thing, he wants to get paid. Fine, two percent hey, i would have taken 20., but hey, there's actually more, there's a lot more insiders who sold but nobody's really crazy. There's an article on seeking alpha, i'm gon na put the link in the description where you can see the breakdown of every single person.

That's sold, as you can see here, according to the block armstrong sold less than two percent of his holdings. So that's the real truth. I mean there's others: somebody sold 24 somebody 38 and the cfo sold 15. Now here's the thing.

When you see these higher percentages, you have to understand that the amount of options that these guys had and the amount of shares that they have in the company is significantly less than brian armstrong. So, for these guys to sell 15 24, it's kind of where they actually meet the cash. If they didn't believe in the company, they would have probably sold 70 or 80 of their shares because of how little that amount is versus what you see with brian, for example. So these higher percentages with the c-level employees and not the founders, is actually very common.

In fact, i applaud this company for doing a direct listing much like palantir, unlike an ipo, where it is a completely rigged game in an ipo initial public offering you, as a retail investor, have no way to participate in the game. It's a rick game. You get to play after everybody already ate it's the hunger games pretty much now, with the direct listing, everybody is playing on a level playing field, the institutionals and their retail investors. So i completely applaud this company for going the direct listing route.

It's way more fair to retail investors, and i think not enough people is giving coinbase that because they deserve it now now that we're done with this fud, what do i actually think about this company so looking at the share price right now, they're, actually still in The decline as of this morning, i think they're at 308 dollars, which means give or take another percent down in free market, and, at this point, you're, probably asking yourself where, where does this company actually will end up in a couple of years? I think that it's going to go way higher, but before i show you my opinion in my dcf, i'm going to show you what the guys on tip pranks are saying and by the way, there's an affiliate link. 40 pranks for the ultimate plan in the description below you'll be supporting the channel plus. You know i love the pranks. I've been using them well before i had the affiliate link.

If anything, it's just a product, i love so on tip ranks. You can see that the consensus price right now for this stock is 480 now. The bulk case is about 600. The average is about 480..

The low case is about 15 or 20 lower than it is right now. But if you take a look at which analysts are saying that there's a bear case for this thing, this is this guy, pretty much he's the only guy in the group that actually saying that if you look at the only five star, this is mark palmer he's The only five-star analyst he's ranked within the first three percent of the analysts in the nation 186 out of 7 461 analyst. He actually has coinbase with his 60 upside all the way to 500, and, as you can see right here, his success rate is pretty phenomenal. So we know that the guys who are doing the recommendations - the analysts are liking this for the most part.

Where do i stand on this? Now, i'm not going to give you a share price, but i will tell you that, based on my dcf, which i already showed you before, you need to look at the valuation right now. The company is trading at a valuation of 62 billion dollars and according to my dcf, which is extremely conservative by the way, if you look at the numbers that these guys are pulling, the company is still extremely undervalued. I've used some numbers here. I've actually talked about it in my previous video, but essentially i used a 20 annual growth from here on and i used a 10 discount rate and i put in 5 billion of additional investments in capex for the company and the 4 perpetual rate and the 25x Multiplier and i got anywhere from 95 billion to 180 billion, so at worst, there's 30 billion more here that you can actually grab, in my opinion or at the best you're looking at about 180, which is pretty much three times more, where it's at right.

Now you decide where you want to be in that spectrum, but in my opinion, i think that the company is extremely undervalued. But again this is just my opinion, might be, inaccurate might be wrong, might be the ramblings of a madman who knows, but here's the thing. Here's something you need to understand and having said that, i also think you guys should hear the risks, because this is not a perfect company. There's no such thing as an investment without any risks, and this company has a lot of them.

If you look at the actual behavior of their revenue and their profits, you'll see that it is extremely correlated to the bitcoin prices, because essentially these guys are running a tollbooth. Every time somebody buys or sells, bitcoin they're, making a profit right and their profit is a percentage about 1.5 out of every transaction, which is a great business model. But if the prices come down and you can make an argument that there's a lot of cryptocurrencies that they're actually charging on, but their bulk of their revenues is coming from bitcoin still and for a long time to go once the bitcoin prices go down. Their fee goes down by definition.

If you take a look at their numbers in 2018, you see huge cliff. Their numbers plummeted faster than my grandpa into his bed after a good meal with some good ass vodka. You know what i mean, so you have to be aware that their surgery experiencing right now is actually correlated with the exceptional prices of bitcoin and the whole assumption of this dcf model. As well as my strategy and my target price is based on the fact that bitcoin is not gon na crash, if there's another crash in bitcoin, these guys will actually suffer quite significantly from it, and you have to be aware of this.

There's a lot of talk about competition. You know, paypal is actually launching cryptocurrency in venmo, but i mean there's still a long ways to go. Plus it's a huge market, there's enough room for everybody block five venmo. They can all actually share.

There's a lot to go around. I think that these guys have first move advantage great ux, very simple, to understand. My grandma can use that it's that simple, so i do think they're going to be around for a long long time. I think kathy wood is loading up on a lot of stock and that's not just because she likes the stock or the coin or the name.

I think she sees the future as well. So don't let that fud, you know of the insider selling. You know don't let these guys fool. You come on.

Coinbase is a very interesting company with some risks, but it's definitely undervalued given their current numbers. So there's not a lot of hype here. There's not a lot of fomo. The company is in a very convenient place as far as the price, so, if you like their business, definitely consider doing your own research and finding out for yourself whether this is a good investment for you, allegedly blah blah blah.

You.