Since Trustpilot’s listing, the stock is up almost 60%. Despite this rise, the shares remain on my watch list. Here’s why.

The update

Last month, the company released a short but sweet trading update. It’s worth noting here that it intends to announce its half-year numbers on 15 September. I’ll be watching out for this. But in the meantime, it gave investors an indication of what could be in store.

The firm expects to deliver total revenue of $62m in the six-month period. This is growth of 31% compared to last year and 22% on a constant currency basis. It uses the annual recurring revenue or ARR metric as well. Trustpilot reckons its ARR for the half-year will be $134m versus $99m in 2020, representing a 27% rise in constant currency.

The acceleration of the business has continued into 2021 as it expected. Bookings growth is likely to be 37% higher over the prior year. The company also reiterated its guidance for high-teens constant currency revenue growth for its full financial year, which is in line with its 2020 bookings growth.

Analysis 

These numbers are impressive and it appears that when Trustpilot does report all of its numbers in September, the results could be received by investors positively. But there’s no guarantee this will happen.

It has only provided its revenue or top-line figures for the six-months as a taster. There’s no indication what profits will be like. Profitability may have been hit and investors will only know when the half-year report is published in full. Let’s not forget that its financial update in July is the first key news the firm has delivered since it listed.

It’s also worth noting that in its IPO prospectus, the company was loss-making. I reckon this could be the case still, especially given that there was no mention about profits in the update. But this is just me speculating. I’ll have to wait and see what the numbers look like.

Broker views

While I may only have the FTSE 250 stock on my watch list, some brokers are bullish on the shares. Last month, Berenberg raised its price target on Trustpilot from 385p to 430p. The bank said that the company’s revenue and booking growth numbers were comfortably ahead of its 2021 full-year expectations.

The analysts maintain their ‘buy’ rating and pointed out that while no segmental detail was provided in the update, they believe there has been an increase in US revenue and bookings.

Berenberg also thinks that further disclosure on geographical performance, including ARR, bookings, revenue and consumer engagement, could act as a further catalyst for the shares at the half-year results. I’ll have to see it this turns out to be true.

Should I buy in September?

As I said, I’m only watching the FTSE 250 stock. So I won’t be buying in September ahead of its results. The shares are already trading close to all-time highs. This means that it’s likely to be sensitive to any negative news. I want to see more detail on its half-year performance before I dip my toe in.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I covered FTSE 100 company Just Eat Takeaway.com (LSE: JET) earlier this month. And I said that I’d watch the stock closely. The shares fell over 7% on Friday on the back of some news, which I’ll discuss shortly.

So should I buy now? Well, I’m still going to monitor the share price. I reckon the company is facing some headwinds, which could impact its growth prospects. Here’s why it remains on my watch list.

The news

Last week, New York City Council approved legislation to permanently cap commissions online food delivery firms can charge restaurants. This is going to impact the likes of Just Eat and competitors such as Uber Eats.

The new bill means that the FTSE 100 company will only be able to charge restaurants in the region of 15% on food orders and 5% for marketing. This news comes after restaurants have been temporarily closed to eat-in customers during the pandemic and have had to pay commission charges as high as 30%.

Concerns

This doesn’t bode well for Just Eat. It purchased Grubhub to gain exposure to the US food delivery market. But it now has to contend with this issue. So what does this mean? Well, its revenue and profit potential is likely to be limited in the region. This means it will have to rely on volume growth rather than increasing its fees.

So far, New York City hasn’t enforced the bill as law. But if it does, I wonder how long will it be before other regions in the US might follow suit. In fact, this could even extend to other cities worldwide.

If this did happen, it would hit Just Eat’s revenue and profitability prospects. It would also make its acquisition of Grubhub seem expensive as it deals with this new legislation.

What happens now?

Grubhub has said that “this permanent price control is flagrantly unconstitutional and will hurt local restaurants, delivery workers and diners across NYC. We will vigorously fight this illegal action”.

I guess Just Eat’s competitors will be appealing this decision too. Of course this will take time and there’s no guarantee anything will come of it. But what it has done is create a headwind for the company and the online food delivery sector.

Results

This comes after the FTSE 100 firm announced its half-year results earlier this month. Revenue growth was strong at 52% with the help of the Grubhub acquisition. Sales improved across all regions and it delivered strong revenue performance in the UK and Germany. The momentum experienced last year seems to have continued into 2021 so far.

But profitability for the six-month period took a hit. Increased marketing costs and tight labour markets in the US reduced profits.

Should I buy?

As I said, I’m worried about the headwinds the FTSE 100 company is facing right now. Increased investment and costs are eating into profitability. And those commission caps in New York City could be a huge issue if they spread to other cities. For now, I’ll continue watching the stock.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. and Uber Technologies. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

#1 – Persimmon

Persimmon (LSE: PSN) reported its half-year numbers earlier this month. In a nutshell, the results were strong. Both revenue and profits improved by a significant amount during the six-month period.

In fact, the housebuilder is trading ahead of its pre-pandemic levels. So far, it has emerged from the coronavirus crisis in a stronger position. The number of new house completions almost doubled compared to last year. And its new housing operating margin improved by 1% to 27.6%.

Even the outlook seems promising. The company has strong forward sales, which have increased from its 2019 levels. But it also reckons that it can deliver approximately 10% growth in sales completions this year.

The housing market still appears to be buoyant. Interest rates are low, and I don’t think these will increase any time soon. Mortgage availability is still good and loans are cheap right now. This should help the FTSE 100 stock push higher.

The company is facing inflationary pressures, including rising building costs. So far, it has managed to absorb the price increases. But I question how long will it be able to to take this pressure.

Things are currently okay as the housing market is ticking along nicely. If this turns the other way, these costs could eat into the company’s profits and thereby impact the shares.

But I can’t ignore the cheap current P/E of 13x. It also has a dividend yield of over 8%. Hence, I’d buy.

#2 – Imperial Brands

Another FTSE 100 stock I’d buy for September is Imperial Brands (LSE: IMB). It’s not the most exciting of businesses but it generates strong cash flow to pay out the income. It’s a steady dividend-payer and I expect the company to tick along and generate modest growth.

The shares are currently trading on a P/E of 6x. This is dirt-cheap and it also has a very attractive dividend yield of almost 9%.

The recent interim results were strong. The board announced a five-year strategic plan in January to improve the company. Of course, it’s too early to assess if it’s working. So I’ll be watching closely for the next update.

What I like, it that the management team also managed to reduced debt by over £3bn on a 12-month basis. This was helped by a business disposal, but it’s encouraging to see that the firm is deleveraging and improving its balance sheet.

The key risk with this FTSE 100 stock is the increase in regulation regarding nicotine products. I expect this will increase over time as everyone is aware of the health issues relating to smoking. This could dampen future profits and could also impact the share price.

But Imperial Brands is focusing on growing its New Generation Products or NGPs. This offers the firm a future growth opportunity. Hence I’d buy.

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Nadai Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I first covered the company on 27 May and was bullish on the shares. Since then, the stock has risen by 40%. But the question I now ask myself is, what’s next for the share price?

Well, I’m still bullish on the stock and would still buy today. I reckon the shares could rise further. The firm released its six-month trading update last month and it was positive.

The numbers

As a quick reminder, Luceco is a manufacturer and distributor of wiring accessories, LED lighting and portable power products for a global customer base. It’s not the most exciting of businesses, but it has delivered a strong set of results.

Its trading performance has continued to improve during the period. Revenue increased by 51% to £108m compared to last year and was 31% higher versus 2019.

Sales have been driven by stronger and broader demand than expected. This was seen from the residential sector, where revenue was boosted by new business wins as well as continuing high levels of home improvement activity. Commercial and institutional demand is also improving.

Pressure

So far the UK small-cap company has managed to protect its profit margins from inflationary pressures on raw material and freight prices. Its gross margin over the six-month period came in at 38.5%, which was similar to 2020. But of course, there’s no guarantee this will be maintained.

In fact, the firm estimates that the “annualised cost impact has increased from £15m to £20m” from inflationary pressures. It expects these headwinds will increase in the second half of its financial year, but reckons its actions can broadly maintain the current margin level. If these costs do rise further, this is likely to impact Luceco’s profitability as well as the share price.

Outlook

What I find encouraging is that the board believes it can deliver performance that is ahead of current market expectations. It also expects to improve on 2020 and pre-pandemic levels. This suggests that it thinks the strong demand for its products can continue for the rest of its financial year.

The company has said that it can generate full-year revenue of at least £220m, which is 25% higher than last year and 28% more than 2019. It’s a similar story for profits as well. It reckons that its adjusted operating profit can be at least £39m, which is a 30% increase on 2020 and more than double 2019’s level.

Cash conversion is also expected to improve in the second-half of 2021. The extra inventory that was held up in the first six months to compensate for supply chain disruption is progressively being released.

Should I buy?

As I said, I reckon the UK small-cap stock could rise further from its current level. Especially if the strong demand continues and it can deliver its 2021 guidance.

Inflationary pressures are somewhat concerning. But as economies start to recover from the pandemic, raw material and freight prices should normalise. Hence, I’d buy.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

So can the stock still increase? Well, I think it can as e-commerce continues to grow. So despite the good run in 2021, I’d still buy the shares. In fact the company released its full-year results yesterday, and I think it’s worth me taking a closer look.

The numbers

The numbers were strong. Revenue increased by 39.1% from £500.7m to £696.2m. And profit after tax improved by 33.8% to £21.7m.

What I also like about the company is that its financial position has strengthened. The net debt position has reduced from £45.1m to £16.9m. It managed to raise the dividend as well and full-year income increased by 14.4% to 11.1p per share.

The fact that it has reduced it liabilities as well as improved the dividend emphasises its strong balance sheet and thereby its financial flexibility.

Other highlights

Clipper Logistics saw strong growth in the period. But it’s no surprise to me that this was fuelled by the pandemic, resulting in the structural shift to online shopping. What I think is also encouraging is how it has extend its existing contracts with key players such as ASOS and John Lewis.

It shows me that the company is clearly is doing something right in good times and bad in order for such clients to stay with the firm. Also, Clipper Logistics has managed to offer a scalable solution, especially as its customers have seen volume growth.

It has also started new operations with Mountain Warehouse and JD Sports. The company said that it has “been able to demonstrate the benefit for customers to outsource their supply chain by joining our shared user operations”.

An outsourced solution is a cost-effective one for many retailers. Otherwise it would be a case of putting the infrastructure and supply chain together, which can be expensive. Given Clipper’s high-profile customers, I reckon more retailers will join, thereby increasing its sales and profits.

Risks

The UK small-cap stock isn’t cheap though. It’s trading close to all-time highs and has a price-to-earnings (P/E) ratio of 39x. So from a valuation perspective, it’s expensive. This may put off some investors (but not me).

While the company has been growing, especially during the pandemic, there’s no guarantee this will continue in a post Covid-19 world. With the shares already high, any negative news could hit the stock price.

Should I buy?

It’s expensive but I reckon some shares are worth paying for. And I think Clipper Logistics is one of them. The company is in a great position to capitalise on the e-commerce boom, which should continue after the pandemic. Hence, I’d buy.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS and Clipper Logistics. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I’ve covered Deliveroo shares extensively and the stock is still on my watch list. But there’s more news regarding the company, which is worth covering in detail.

Partnership

Food delivery is not enough for the company. It wants to expand and diversify its offering. Deliveroo has partnered with the chemist chain Boots to deliver its products. This means that customers will be able to order items such as medical supplies and make-up.

This is part of a pilot scheme that launched on Tuesday. It’s being trialled in 14 stores, which include locations in London, Birmingham, Edinburgh and Nottingham. It comes after UK Covid-19 restrictions have been lifted and beauty product sales have begun to pick up as more people are socialising.

It’s worth noting here that Boots is owned by the US company, Walgreens Boots Alliance. And if this pilot scheme is successful, it may be rolled out to all pharmacy stores nationwide. This could help boost sales and push Deliveroo shares higher.

The deal works well for both parties. For Boots, it means quicker delivery times to consumers, thereby improving its customer service. For Deliveroo, it has another reputable brand under its belt and it also diversifies its revenue stream.

Early days

As I said, it’s still early days and the pilot scheme is being run to see if there’s any consumer appetite for an on-demand service. Let’s not forget that the company is also testing the waters with fast grocery delivery. It recently announced a deal with Waitrose.

Boots has acknowledged that this service is useful for people who are unwell and can’t leave the house or parents who quickly need supplies for their children. That’s all well and good, but I’d like to see evidence that consumers are using this before I dip my toe in.

Also, now people are socialising more and office workers are slowly returning to their desks, I question how many will actually use this service? There are competitors like Amazon that could simply shorten their delivery times. Other than Boots’ own brands, many of  products sold by the pharmacy chain are likely to available on Amazon’s platform.

Recent news

It has been a few active months for Deliveroo. The company increased its full-year guidance after a strong second quarter but it did warn that extra investment could dampen profit margins.

It also announced that it was ending its operations in Spain. In order to achieve and maintain a competitive position in the country, it required significant investment. So it decided to exit and focus its efforts elsewhere.

Should I buy?

The Boots partnership will be a good thing if it’s successful. It’s good to hear that it’s diversifying away from food delivery, but this is an early move. Deliveroo shares are still on my watch list and I’ll be monitoring the company’s announcements to see its progress. But for now, I’m not buying.

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Nadia Yaqub has no position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The shares are dirt-cheap right now and trade on a price-to-earnings (P/E) ratio of six times. The Imperial Brands share price also comes with a whopping 9% dividend yield. As an income hungry investor, that’s very appealing. In fact, I’d buy the stock just for the dividend alone.

Interims

The FTSE 100 company reported its half-year results in May and the numbers were strong. Revenue increased by 6.1% to £15.6bn and reported operating profit improved by a stellar 77% to £1.6bn. But this wasn’t entirely due to improved performance. It was down to the disposal of its Premium Cigar Division as well the reduction in amortisation and impairments.

But if I look at organic adjusted operating profit this also improved by 8.6% to £1.6bn compared to last year. On a constant basis this increased by 8.1%. This gives me a better picture of the company’s profitability.

The firm has made a good start to implementing the new strategy it set in January. It’s a five-year plan, which includes becoming more consumer-centric. Of course, it’s still early days to assess the progress it has made, but at least it’s encouraging to see that it has made some headway.

Net debt

I like that the board is focused on reducing its net debt position. This was reduced by over £3bn to approximately £11bn on a 12-month basis. It’s worth noting here that last year the dividend was cut. So this as well as the disposal proceeds has helped the firm deleverage by a significant amount.

According to the company its net debt as a proportion of its profits or EBITDA is 2.6 times. Compare this figure to last year’s number of 3.5 times, it has reduced a lot. For me, it’s still high but the main thing is that the liabilities are reducing. 

Outlook

Imperial brands remains on track to deliver full-year results in line with its guidance. So at least things haven’t deteriorated, which is a positive sign.

Of course, there’s no guarantee it will remain on track to meet these targets. But it reckons it can deliver “low-mid single digit organic adjusted operating profit growth at constant currency”.

Risks

The stock does come with risks. The rules around the level of nicotine in tobacco products are tightening and I reckon this will only become stricter going forwards.

Increasing regulation and the costs that come with it could place pressure on profitability and the Imperial Brands share price. This may also impact the dividend as well.

Should I buy?

As I said, the 9% dividend yield is too hard to ignore. I consider Imperial Brands to be a ‘steady eddy’ stock. The firm generates cash flows to pay out the income. The company is ticking along and expects to deliver some growth this year. And with a cheap valuation, I’d consider buying the shares.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I reckon this blip is a buying opportunity and I’d snap up some BT shares. Here’s why.

Board change

Things are slowly but surely changing for the firm. I’ve mentioned before the 12% stake held by Altice, which I think will help push forward the company’s transformation. But more recently, the FTSE 100 firm announced the appointment of a new board member.

Adam Crozier will join BT as an independent non-executive director and chairman. This is a key and influential role. So for this position, the company needs someone with a lot of experience.

On paper, Crozier seems like a good candidate. I’ve read his biography and he has had some high-profile jobs in the past. Crozier is currently the Chairman of Whitbread, ASOS, and Kantar Group, as well as a non-executive director of Sony Corporation. 

He has a strong track record in turning around companies, which will come in handy when he starts at BT later this year. Crozier will also step down from his roles at ASOS and Sony when he takes the BT position.

Following the investment from Altice, now seems like a good time to shake up the board with a new senior hire. And that’s exactly what has happened. I personally think this is a good thing so I’ll be watching closely to see what changes Crozier makes under his tenure.

News flow

Earlier this week, the BT share price was hit as news came out that a competitor to the Openreach network, CityFibre, is due to secure a £500m funding boost from a consortium of investors. This includes Abu Dhabi’s sovereign wealth fund, which manages significant assets. There’s also further news that these investors may be looking to buy a minority stake in CityFibre. The deal is expected to be announced over the coming weeks.

The point of this investment is to help the competitor ramp up its ultra-fast broadband rollout. This is something BT is doing with its Openreach division. I’m personally not worried about this and I think the slump in the shares was something an overreaction.

Of course, BT is always going to face competition. But let’s not forget that it has the backing of Altice, which has a strong track record in the telecoms sector. I don’t think CityFibre’s deal will delay the FTSE 100 firm in meeting its own full-fibre broadband goals.

Risks

Yet the stocks does comes with risks. The key one is that its financial position isn’t the strongest. It has a large debt pile and chunky pension deficit to pay. These liabilities aren’t going to disappear overnight and could put pressure on the BT share price.

Now that its competitor looks as if it has secured funding, the firm will need to increase its efforts to deliver its targets. If it doesn’t, then the shares are likely to take a hit.

Should I buy?

As I said, things are slowly but surely changing. In my opinion it’s taking the right steps. So as a long-term investor, I’d use this dip as a buying opportunity.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

So what’s happening? Well, the retailer released a trading update last week. And judging by the share price performance, the market was pleased. So should I buy the shares now? I’m not buying yet, but the stock is now on my investment radar. I think the news release is worth a closer look.

Performance

The FTSE 250 company started the year with an uncertain trading outlook. Covid-19 restrictions meant that most of its stores were closed. Of course, this was going to play havoc with sales. But since then, things appear to be promising.

Overall revenue for the 19 weeks to 14 August increased by 29.1% compared to last year. But more importantly, this improved by 4.4% compared to its pre-pandemic levels. While this rise may seem small, it shows that consumers are still buying its products and that there’s pent-up demand.

Its stores suffered during the pandemic but it has emerged from the coronavirus crisis with higher sales. Is there now light at the end of the tunnel? Well, it’s still early days for the retailer.

Food

I’m not surprised that the firm’s food offering saved the day once again. Revenue from this division increased 10.8% on last year and 9.6% on 2019. The retailer has seen strong performance from its core categories and retail park locations from this business. Hospitality and franchise are slowly improving given the low footfall and slow return to normal work patterns.

Outlook

What really got the market excited was the company’s forward guidance. It said that if there aren’t any further Covid-19 disruptions, it expects adjusted pre-tax profit for the year to beat the upper end of previous guidance of £300m-£350m.

It’s encouraging that it has increased its profitability forecasts and a sign of perhaps good things to come. So has the retailer turned a corner? I don’t think it has just yet.

Risks

As I said, it’s still early days. And there’s no guarantee that this strong performance will carry on for the rest of its financial year. This could be a short-lived pick-up in demand, especially after its stores were closed during the pandemic. If this is the case, then it may hit the Marks & Spencer share price.

Even the company has said that “there remains substantial uncertainty as to the continued strength of consumer demand, as well as disruption in both supply chains and consequent pressures on costs and margin”. 

Should I buy?

While the market has viewed the trading statement positively, I’m taking this with a pinch of salt. Competition is fierce and even with improving online sales, I’m not convinced whether this good performance will be sustainable for the retailer. Hence, I’ve placed the stock on my watch list. I’m erring on the side of caution and am not ready to dip my toe in just yet.

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Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

But should I buy Coinbase shares? Well, the stock is on my watch list. I’m not buying just yet though, and here’s why.

Crypto portfolio

On Friday, the company announced that it will be investing $500m in a diverse portfolio of crypto assets. And going forward, it will also be allocating 10% of its quarterly profits to this same portfolio.

So this isn’t a one-off thing. It intends to continue investing in cryptocurrencies for the foreseeable future. The company said in its statement that it will “become the first publicly traded company to hold Ethereum, Proof of Stake assets, DeFi tokens, and many other crypto assets” in addition to Bitcoin on its balance sheet.

CEO, Brian Armstrong expects the portfolio to grow as the market matures. The firm is also doing this as part of its plans to diversify away from trading cryptocurrencies. But here’s my concern. While the portfolio will be spread across various crypto assets, they’re volatile in nature, especially Bitcoin. So it may have a portfolio that varies a lot in value.

Couple that with how it generates revenue from consumers trading cryptocurrency and if Bitcoin falls in value, then it’s most likely that the other cryptocurrencies will suffer too. The company’s revenue may be hit and the value of its crypto portfolio may reduce as well.

The firm reckons that more companies will hold crypto assets on their balance sheets. This may happen, but regulators are already clamping down on cryptocurrencies, so it could take some time.

Results

I see plenty of positives though. Earlier this month, the business released its second-quarter results. And these were pretty impressive. Net revenue for the three months grew from $1.6bn in the previous quarter to over $2bn. It was a similar case for profits, net income increased to $1.6bn.

The company is in a financially strong position. It’s sitting on $4.4bn cash and could use this to weather any headwinds such as increased regulation. Quarterly trading volume and the number of monthly transacting users also improved.

Should I buy?

As I said, Coinbase shares are likely linked to the performance of Bitcoin. But the correlation between the stock price and the most popular cryptocurrency has only increased with the addition of the sizeable crypto portfolio. This makes me somewhat uncomfortable.

The industry is maturing but it still has a long way to go. What this portfolio has done is indicate that Coinbase is looking to further integrate the digital assets into its business. In time, it may even start paying its employees in cryptocurrencies. Of course, this is just me speculating so I’ll have to watch this space.

For now, I’d like to see how its pool of crypto assets will play out. Let’s not forget that it has said it’s the first public company to do this. Someone has to be the first and it happens to be Coinbase. I don’t think other listed firms will follow straight after, but I reckon they will be watching closely. I’m watching too, but I’m not buying yet.

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The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Nadia Yaqub has no position in any of the shares and cryptocurrencies mentioned. The Motley Fool UK owns shares of and has recommended Bitcoin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.