☕ Coinbase is off like a rocket, should you buy it?

Howdy! 👋 

Welcome to Friyay! 

History is very, very clear. 

Your perspective changes everything… how you see the markets, how you get involved with the markets, your goals, your tactics and, critically, your profit potential. 

If you’re a trader, fine… be a trader. 

If you’re an investor, fine… be an investor. 

Either way… 

Volatility is simply the price of admission. 

Here’s my playbook. 

1 – CPI lower than expected but the real tell is yields 

The Ministry of Whitewash shared the latest CPI readings with us this morning. 

2.4% headline, 2.5% core. (Read) 

Markets are now pricing roughly an 83% chance of a June rate cut. 

So why the rally? 

When rate cuts go from “possible” to “probable”, markets almost always move ahead of the actual event.  

Lower yields mean cheaper money so traders will borrow more and buy more. 

Keith’s Investing Tip: Liquidity doesn’t wait for press conferences and there’s never a glaring green light to act. So let the market come to you and have your shopping list ready EVERY.SINGLE.DAY. Your portfolio will thank you. 

2 – Coinbase is off like a rocket – should you buy it? 

Coinbase shares are off like a rocket today, up ~16% as I type. 

Should you buy it? 

Depends on your perspective. 

The company just reported a Q4 revenue miss. (Read) 

What you’ve really got to decide if you’re going to invest is a) whether management’s recent emphasis on revenue diversification is a positive take away from the earnings call and b) whether crypto’s bottom is in. 

Knowing what I know about market mechanics, I’m willing to bet that Wall Street has engineered today’s move with the intention of sweeping in the FOMO crowd. 

Adding fuel to the fire and the reversal setup, retail sentiment has spiked this morning to “extremely bullish” on Stocktwits which tells me that a lot of folks have taken the bait. 

I won’t be in the least bit surprised to see it tank tomorrow. 

Putskies! – a bet that the stock declines. 

3 – Autonomous, but not quite 

The latest? 

Waymo’s robotaxis don’t need drivers, but they apparently still need someone to close the door.  

In Atlanta, Waymo is paying gig workers – like those from DoorDash – to walk over and shut robotaxi doors that passengers leave open. If the door isn’t fully closed, the vehicle won’t move. (Read) 

It just sits there.  

So Waymo pings a nearby delivery driver. 

$11.25 to shut a door. 

In L.A.?  

Up to $24. 

Here’s the thing. 

If your business model depends on human patchwork to keep machines moving, your margins are going to look very human too. 

Contrast that with Unka Elon’s approach. 

To a point I made recently on the Cow Guy’s show, Tesla cars are like the iPhone is Apple’s ecosystem, meaning the car isn’t the product, just the platform. 

I believe Tesla is setting up for another unbelievable run and that it will print an entirely new generation of millionaires in the process. 

I hope I am smart enough to buy more shares. 

4 – Pinterest is Peloton for pictures 

Pinterest dropped 20% following earnings.  

The explanation?  

Tariffs. (Read) 🙄 

Management cited an “exogenous shock” as large retailers pulled back on advertising spend. 

Yeah, and the dog ate my homework. 

I think the stock is dead money and have for a long time… since 2021, in fact, when I urged MoneyShow attendees to “avoid it like the plague” for the foreseeable future. 

Lots of people disagreed with me, of course. 

I recall thinking to myself at the time, excellent… my experience is that the more people disagree, the bigger the profit potential. 

But that’s neither here nor there. 

Back to Pinterest. 

I think Pinterest will be lucky to survive another few years at best. 

It’s Peloton for pictures. 

Pinterest is, at its core, an n+1 business, meaning that it simply improves what already exists. 

My preference is to invest in companies that are “Zero to One” – a term created by billionaire investor Peter Thiel who wrote a book by the same name (which is required reading for the OBA Family, and something I encourage every aspiring investor to read). 

Why? 

Two reasons: 

1. Zero-to-one companies create something that didn’t previously exist and, in doing so, redefine the playing field.  
2. The investing potential attached to zero-to-one businesses is orders of magnitude larger. 

Hopefully you’ve got this covered with your own portfolio for the simple reason that it’s a game changer. If not, I’ll be here and the idea of “zero to one” choices is helpful. 

Btw, many investors remain trapped on the sidelines because they can’t grasp the potential. 

Nvidia made a “Zero to One” pivot in 2011 and has returned ~50,864.91% since – enough to turn every $1,000 invested on 1 January, 2011 into $509,649 today even after all the selling. 

Tesla made its first Zero to One move when it IPO’d and has returned 26,032.79% since – enough to turn every $1,000 invested on 29 June, 2010 into $261,328 today and again, after all the selling. 

History suggests that there are 10-15 “Teslas” and “Nvidias” out there right now in various stages of maturity and it’s important that you own ‘em. If not, well…. 

5 – Tune in Sunday! 😀 

The fabulous Suze Orman has kindly invited me back to join her on Women & Money this Sunday. 

We’re taking questions and looking forward to a wonderful, wide-ranging conversation! 

Hope you can 📺 💻🤳 💯😀 

Bottom Line 

Always do what Wall Street does, not what it says!    

Knowing how the game is played is a huge advantage because it means you can sidestep the chaos and use it to your advantage.   

Profit potential almost always follows.   

Now and as always, let’s MAKE it a great day and finish the week strong. 

You got this – I promise! 

Keith 😀