Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Facebook    FB


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Buying Shares in Crypto Firms Is Risky Business -- WSJ

share with twitter share with LinkedIn share with facebook
share via e-mail
11/27/2019 | 02:48am EST

By Paul Vigna

Investors looking for a piece of the cryptocurrency game have one avenue that is sometimes overlooked: stocks.

Buying bitcoin itself is a minefield of volatility. The price is declining again, and another high-risk crypto startup called it quits. On the other hand, Facebook Inc. is building its own cryptocurrency. Governments and companies are still exploring blockchain technology.

There is still an opportunity for investors, assuming they can make the right bet.

In five years' time, the technology behind bitcoin and blockchain is probably going to be used across a range of industries, said Tom Forde, an analyst at D.A. Davidson. The trick is figuring out which cases will bear fruit, and which companies are going to profit from it.

"That's what makes it so exciting and challenging at the same time," he said.

Mr. Forde recommends a checklist for investors, who he suggests tread cautiously: Does the company have patents? Is there a business that can be built off those patents? Is it a case where the first company can be successful, or will it take several generations of the technology? Is there enough financing to make the business work?

Mr. Forde follows Overstock.com Inc. closely (he rates it a "buy"), but he also keeps a list of dozens of other companies in the space as potential investment opportunities. He breaks them into three categories: existing companies, crypto companies and opportunists.

Big chip maker Nvidia Corp. became a crypto darling when "miners" started buying its specialized videogame chips. That helped push the stock to an all-time high of $289 in October 2018. When crypto cratered, though, Nvidia's stock stumbled. Today it has stabilized and resumed its march upward, up 63% year-to-date at $217.

Among, crypto companies, Toronto-based Hut 8 Mining Corp. operates mining services and went through a bout of belt-tightening in 2019 after the crypto bubble popped. In its recently reported third quarter, the company posted a loss of $1.7 million, partially offsetting a $26 million profit for the first nine months of 2019. Shares were most recently at $1.41.

Longfin Corp., meanwhile, is an example of how risky this space can be. The company went public in 2017, listing on Nasdaq, and raised $5.7 million. It claimed to have two businesses, trade finance for commodities trading and risk-management software. The timing was good; the stock rose as high as $17 in early 2018.

Today, the stock still shows up on the charts, at 40 cents even, but the company is no more. It was investigated by the Securities and Exchange Commission and shut down. Founder Venkata Meenavalli was charged in June with committing fraud by the SEC and Justice Department.

Write to Paul Vigna at paul.vigna@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
BITCOIN - EURO 0.27% 7817.123 End-of-day quote.21.73%
BITCOIN - UNITED STATES DOLLAR 0.23% 8616.1735 End-of-day quote.19.64%
CRB COMMODITY INDEX 0.10% 195.01 End-of-day quote.0.00%
FACEBOOK -0.83% 217.94 Delayed Quote.6.19%
HUT 8 MINING CORP. 3.80% 1.64 Delayed Quote.53.27%
NASDAQ COMP. -0.93% 9314.91145 Delayed Quote.4.58%
NVIDIA CORPORATION -0.94% 250.48 Delayed Quote.6.45%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on FACEBOOK
02:48aApple Stock Beats the Odds -- WSJ
01/26State Attorneys General to Meet With Justice Officials to Coordinate on Googl..
01/26State Attorneys General to Meet With Justice Officials to Coordinate on Googl..
01/26Apple Was Headed for a Slump. Then It Had One of the Biggest Rallies Ever.
01/25U.S. Treasury chief Mnuchin says optimistic about U.S.-UK trade deal
01/25German Court Says Facebook Violated Consumer-Data Rules -- WSJ
01/25Casper's IPO Dreams Meet Wall Street's Wake-Up Call -- WSJ
01/24Communications Services Down On Defensive Bias -- Communications Services Rou..
01/24WALL STREET WEEK AHEAD : Hopes are high for tech stock 'Cadillacs'; so are their..
01/24The S&P 500 has worst day since October as virus fears mount
More news
Financials (USD)
Sales 2019 70 488 M
EBIT 2019 24 806 M
Net income 2019 18 278 M
Finance 2019 52 381 M
Yield 2019 -
P/E ratio 2019 34,3x
P/E ratio 2020 24,1x
EV / Sales2019 8,07x
EV / Sales2020 6,45x
Capitalization 622 B
Duration : Period :
Facebook Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FACEBOOK
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 53
Average target price 243,21  $
Last Close Price 217,94  $
Spread / Highest target 37,7%
Spread / Average Target 11,6%
Spread / Lowest Target -44,9%
EPS Revisions
Mark Elliot Zuckerberg Chairman & Chief Executive Officer
Sheryl Kara Sandberg Chief Operating Officer & Director
David M. Wehner Chief Financial Officer
Michael Todd Schroepfer Chief Technology Officer
Atish Banerjea Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
FACEBOOK6.19%621 510
TWITTER3.56%25 717
MATCH GROUP, INC.4.21%23 957
NEW WORK SE1.03%1 828