Top 3 Crypto Stocks to Watch This Week: MSTR, PYPL, HOOD

Key Insights

• MSTR is one of the top crypto stocks to watch after revealing its Bitcoin purchases.
• PayPal stock is in the spotlight after Michael Burry revealed his purchases.
• Robinhood stock will be in focus after receiving an IPO underwriting license.

Crypto stocks have come under intense pressure in the past few months as Bitcoin and most altcoins retreated. Bitcoin fell below $60,000 earlier this month, while other altcoins performed worse.

This sell-off is easing after the US and Iran reached a deal to reopen the Strait of Hormuz, which has led to a risk-on sentiment in the market. In the aftermath, Bitcoin jumped to $67,000, its highest point in weeks. This article highlights some of the top crypto stocks to watch this week, including Strategy (MSTR), PayPal (PYPL), and Robinhood (HOOD).

Strategy in Focus as Bitcoin Buying Continues

The MSTR stock price has been in a strong downward trend in the past few months and is now hovering slightly above the year-to-date low of $103.40. At its peak, the stock was trading at $542, meaning that its crash erased billions of dollars in value.

MSTR stock made headlines two weeks ago after it revealed that it sold 32 coins. This was notable as the company has been in an accumulation mode for years, making it the biggest digital asset treasury (DAT) company in the world with over 846k coins in its balance sheet.

Strategy eased these tensions last week when it announced that it bought over 1,000 coins. This is one of the key reasons why Bitcoin has done relatively well in the past few days.

Michael Saylor, the CEO, hinted that the company continued buying Bitcoin last week. In a statement today, it confirmed that it increased its position by 1,587 coins worth $100 million last week. It now holds 846,842 coins and also boosted its cash position by $100 million to $1.1 billion.

Strategy will likely do well in the coming days as Bitcoin continues rising and as investors embrace a risk-on sentiment after the latest US-Iran deal.

PayPal Stock in Focus as Michael Burry Buys the Dip

PayPal stock has been in a strong bearish trend in the past few years. It crashed from a record high of $300 in 2021 to $41 today. This retreat happened as the company’s revenue growth slowed and as its CEO turnover increased.

Now, Michael Burry, who accurately predicted the Global Financial Crisis, has spotted an opportunity. He has started buying PayPal and adding to his position, a sign that he expects it to eventually rebound.

He believes that the company has a solid product that has over 430 million users globally. It has also become a highly undervalued company with a forward price-to-earnings ratio of 10. This makes it one of the most undervalued companies in the industry, considering that the average S&P 500 multiple is 22.

Burry also believes that the company will become a good buying opportunity. Indeed, media reports suggest that Stripe was considering making a bid for the company.

Robinhood to Be a Top Player in IPOs

HOOD stock price has jumped in the past few days, reaching its highest point since January this year. It has jumped by over 50% from its lowest point this year.

Robinhood has jumped despite the ongoing crypto market weakness that has affected its volume. Indeed, the most recent numbers showed that its crypto business was its weakest link.

The company has continued to innovate this year. For example, it won an IPO underwriting license, making it eligible to participate in some of the upcoming listings like OpenAI and Anthropic.

Analysts predict that the company has more room to grow. For example, the average estimate is that its revenue will grow by 11% to $5 billion. It will then grow by 21% next year to $6.09 billion. Therefore, the stock will likely continue doing well over time.

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