Crypto stocks, Tapestry: Trending Tickers

Crypto-related stocks — such as Coinbase (COIN), MicroStrategy (MSTR), and Marathon Digital (MARA) — are reacting to bitcoin's (BTC-USD) peak above $45,000 Tuesday morning

Shares of Tapestry (TPR), the parent company of luxury retail brands Kate Spade and Coach, inch higher after JPMorgan added the stock to its Analyst Focus List and raised its price target to $46 per share.

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Video Transcript

- Coinbase, MicroStrategy, Marathon, all posting big moves as Bitcoin itself tops $45,000. That's the first time it's done it in a couple of years. Now, what's interesting is, these other tickers are trending. Coinbase, MicroStrategy, Marathon Digital, Riot, anything having to do with crypto, but they're not all up along with Bitcoin, which is interesting.

A lot of them have seen big gains in recent days, in recent months, over this optimism that we're going to see an approval for the Bitcoin spot, Bitcoin ETF. Interesting commentary out from Bernstein's Gautam Chhugani, who said that this is going to be a breakout inflection year for crypto. So there's definitely some optimism being baked into the currency today, even if the impact on the stocks is a little more mixed.

- Yeah. And as you point out, some of these names have just ripped higher. I mean, Coinbase is up about 370% in the last 12 months. Look at Marathon Digital, it's up about 580%. So they have moved hard. There are a couple of very interesting, I mean, you can think about them as tailwinds. I mean, we talk about the spot, Bitcoin ETF. That deadline is fast approaching.

The SEC has until January 10, right, to make a decision on the Ark 21 shares ETF. And we've talked to a number of folks, there is this confidence that the SEC is going to approve that. And then you also have that so-called Bitcoin halving coming, which is planned for April. So there you're referring to this process that curbs the supply of new tokens and that's seen as potentially another catalyst. So you do see these tailwinds, and coming off, as we noted, just huge moves in some of these names.

- Yeah. One other thing I noticed today, Coinbase is replacing its head of custody. Aaron Schnarch being replaced by Rick Schonberg. Why is this important? Well, Coinbase has been chosen as the custody partner for a number of these spot Bitcoin ETFs, if they get approved. BlackRock, Franklin, Templeton, Grayscale. So basically this is their partner to custody those assets. So Coinbase is getting ready by making that management change, it seems.

- Changes to watch.

- Yeah.

- All right. Finally here, shares of fashion company Tapestry rising today. That's after JPMorgan added the company to its focus list, and raised the price target to $46 from $41. So the team at JP Morgan, they're already overweight the names, so they're a buy. What they did was add the stock to their analyst focus list as a, quote, "Value idea". Raise their price target. They expect strong performance from the coach brand, in particular, is what they were mentioning over the holidays.

Notably, they pointed out North America, and more broadly it seems like they're telling clients, listen, we think they're simply, this company is well positioned in what they call a resilient and durable category. And by that they mean the premium handbags, the small leather goods, and the footwear.

- Now remember, they're the parent company not just of Coach but of Kate Spade, and Stuart Weitzman as well. So that's the company that they're talking about. I thought it was interesting here, Coach specifically Matt Boss and the team over there JPMorgan, saying that they saw an improvement in Coach's net promoter score.

It's basically a measure of how people feel about the brand, that they saw an 11% sequential improvement in that Coach brand perception in November. Google Trends also seeing improvement here. So interesting that there are this if not an inflection point, certainly a gradual ramp upward in perception of Coach. So we'll see how that pans out.

- Yeah. Yeah, before you all pile in, the analysts they do point out the risks to their call too, right? They talk about competition, increased promotional activity, failure, they talked about what if they don't turn around brands like Kate Spade. But they're bullish, and in fact, most analysts covering this name are fans. You got 15 buys, eight holds, just one sell at this point.

- Interesting. What did Coach do last year? Or what did Tapestry do last year? I'm going to check real quick. It was down.

- Down.

- Down. So we'll see if it has that rebound this year.