After experiencing a slowdown due to withdrawals and various technical difficulties, the cryptocurrency industry appears poised to rebound, which could end up generating big returns for blockchain stock investors.
Jerome Powell, Chairman of the Federal Reserve, announced on Friday that the latest inflation data is in line with the Federal Reserve's goals. Although Powell acknowledges the challenges on the path to overcoming inflation, he indicated that progress is being made toward achieving the Fed's 2% inflation goal.
This statement is crucial as it suggests that the Federal Reserve is unlikely to consider raising interest rates, which could negatively affect cryptocurrency markets.
However, directly purchasing digital currencies carries considerable risks. Alternatively, investors could consider reducing exposure to these risks by investing indirectly, for example through blockchain-oriented stocks.
Top 3 Blockchain Stocks to Buy in April 2024
1. Coinbase (currency)
Coinbase (NASDAQ:COIN), a leading crypto exchange and wallet service, stands out as one of the top blockchain stocks for investors to consider.
While it is not a purely blockchain company, it has facilitated the entry of millions of people into the somewhat murky world of cryptocurrency investing. Despite facing legal and regulatory challenges, Coinbase's importance makes its shares an interesting option for investors.
However, investors should note that the investment case for Coinbase closely follows volatility. cryptocurrency world speculation. A quick look at the company's financials might initially cause alarm.
For example, in the fourth quarter of 2022, Coinbase reported a loss of $2.46 per shareslightly better than the anticipated loss of $2.52 per share, but still far from stellar.
However, a year later, the narrative has changed. In the fourth quarter of 2023, Coinbase announced earnings per share (EPS) of $1.04, far exceeding expectations of just two cents. In short, as long as the cryptocurrency market is alive and well, Coinbase stock will likely continue to defy skeptics.
2. Robinhood (BELL)
Robinhood (NASDAQ:HOOD), while not strictly a blockchain-focused company, should definitely be on the radar as sentiment around cryptocurrencies increases.
This financial services powerhouse has attracted attention by making accessible virtual currencies for eager retail investors, reflecting Coinbase's strategy. Its platform, which cleverly integrates gaming elements, has been particularly popular among young users.
The synergy between interest in both high-yield stocks and decentralized assets has propelled Robinhood to an impressively strong earnings record.
Highlighting this achievement, Robinhood reported earnings per share of 3 cents in both the second and fourth quarters of the previous year, defying expectations of a 1 cent loss. Over the last four quarters, the company has averaged an earnings surprise of 204.15%.
Looking ahead to fiscal 2024, industry analysts are optimistic, projecting EPS of 27 cents with revenue forecast to reach $2.19 billion. This represents a substantial rebound from the previous year, in which the company incurred a loss of 61 cents on revenue of $1.86 billion.
As cryptocurrencies continue their upward trend, Robinhood stock is well positioned to benefit from this momentum, making it an attractive option for speculative investors.
3. Clean Spark (CLSK)
Lastly, CleanSpark (NASDAQ:CLSK) is the only genuine blockchain candidate in our roundup of blockchain stocks to buy.
Different from your typical cryptocurrency miner, CleanSpark operates data centers that prioritize low-carbon energy sources. This approach is particularly interesting, considering its focus on Bitcoin, a digital asset known for its significant energy consumption.
In essence, CleanSpark's innovative, greener mining technique could revolutionize the industry by reducing the environmental cost of mining such an energy-intensive asset.
However, investing in CleanSpark comes with a high level of speculation. The company's financial performance is unpredictable, with significant fluctuations in its quarterly results. For example, in the third quarter of last year, CleanSpark reported a substantial loss of 63 cents per share, much higher than the expected loss of 13 cents per share.
However, for those willing to attribute these โcrazyโ financial results to the growing problems of an ambitious company, the outlook for fiscal 2024 offers a ray of hope. Analysts predict earnings per share of 75 cents on a revenue forecast of $432.67 million, but these results largely depend on the future trajectory of the crypto market.
Still, this represents an improvement over the prior year's numbers, where the company suffered a loss of $1.33 per share on revenue of $168.41 million.
