Shiba Inu Is Down 84%. Should You Buy the Dip?
Shiba Inu (CRYPTO: SHIB) could not have performed better for investors a few years ago. From the start of 2021 to its all-time high in late October that year, this digital asset absolutely skyrocketed. There are surely some very lucky speculators who amassed life-changing wealth.
However, it's been a different story since then. While the overall crypto market has held up well, despite the volatility, Shiba Inu has a lot of work to do to catch up to its former glory.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
As of May 20, this meme token trades at $0.00001428, which is 84% below its peak from about three and a half years ago. Is it time to buy the dip with Shiba Inu? I think investors should look at both sides of the argument to gain a more thorough understanding.
Hoping for a quick profit
As of this writing, Shiba Inu carries a market cap of $8.4 billion. This makes it the 16th largest cryptocurrency on Earth. This is a higher value than companies like Etsy and Peloton.
As a result, it's hard to argue that Shiba Inu doesn't possess a strong community of supporters. These supporters, known as the "Shib Army," help to drive interest in the token online. Speculators understand that the community can lead to various hype cycles. And if the timing is correct, there's a chance to achieve huge profits in a short period of time.
Shiba Inu can be viewed as a " Dogecoin killer." That's because it's built to be compatible with the Ethereum network. This means that Shiba Inu has greater functionality than its dog-themed predecessor. Tokens can be used in decentralized exchanges, to trade non-fungible tokens, or within decentralized finance protocols. In theory, this raises utility.
What's more, Shiba Inu's developers are trying to increase adoption with various features. Shibarium, a layer-2 scaling solution, was introduced to speed up transactions and lower costs. A dedicated metaverse was also launched in December last year that allows users to interact in a virtual world. This might draw some excitement toward Shiba Inu.
Adding unnecessary risk to your portfolio
According to venture firm Electric Capital, Shiba Inu isn't even on the list of top 100 cryptocurrencies when it comes to the number of developers actively working on it. This doesn't bode well for its future, especially if you believe, like I do, that a cryptocurrency's ultimate viability comes down to how much real-world utility it can introduce. This puts Shiba Inu at a major disadvantage.
The tokenomics also leave much to be desired. There are currently 589 trillion Shiba Inu tokens in circulation. That intentionally high supply base is the opposite setup of the scarcity Bitcoin possesses, for instance. This makes it all the more difficult for Shiba Inu's price to steadily rise over time.
There is a coin-burning mechanism in place to reduce supply. On May 19, though, only 49 million coins were burned. That's not going to put a meaningful dent in the supply anytime soon, as it would take more than 16,000 years to burn half the outstanding supply.
The fact that anyone can create a new token out of thin air poses a key risk for Shiba Inu, which is competition. The cryptocurrency industry remains the newest asset class out there. Consequently, it's still characterized by unhealthy amounts of speculation among market participants. There's no shortage of tokens to bet on in the hopes of getting rich quick. This increases the chances that people will move away from Shiba Inu one day onto the newly released shiny token.
For long-term investors who want to own high-quality assets, there's really no reason to own Shiba Inu. The bear case for the meme token is much more compelling than the bullish argument. Even though the cryptocurrency is trading well off its peak, investors should avoid Shiba Inu.
Should you invest $1,000 in Shiba Inu right now?
Before you buy stock in Shiba Inu, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shiba Inu wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!*
Now, it's worth noting Stock Advisor 's total average return is963% — a market-crushing outperformance compared to168%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
16 minutes ago
- Globe and Mail
RGTI, IONQ: 2 ‘Strong Buy' Russell 2000 Stocks Analysts Say You Shouldn't Miss
Small-cap stocks often fly under the radar, but some hold massive upside potential, especially when backed by bullish analyst sentiment. In this context, two standout names from the Russell 2000, Rigetti Computing (RGTI) and IonQ (IONQ) have both earned Strong Buy ratings from Wall Street. Both stocks are part of the quantum computing space and present high-risk, high-reward opportunities for investors. Confident Investing Starts Here: Let's dive into the details. Is RGTI Stock a Good Buy? Rigetti is an early-stage quantum computing company that's gaining attention for its innovative technology and government partnerships. The company's superconducting systems perform ultra-fast operations in just 60–80 nanoseconds, perfect for tasks like AI and financial modeling. With full control over its tech stack, from chip design to cloud access, the company is well-positioned for scalable growth. However, Rigetti's financial story is challenging. In Q1, revenue plunged 52% to $1.47 million, and operating loss came in at $21.6 million. Despite being unprofitable, analysts remain optimistic about its long-term potential in the emerging quantum sector. Rigetti Computing Stock Forecast Last month, Craig-Hallum's five-star-rated analyst Richard Shannon maintained his Buy rating on RGTI stock. Interestingly, all five analysts who rated the stock gave it a Buy, according to TipRanks. Taken together, Rigetti's stock forecast of $15.0 implies an upside of about 32%. Meanwhile, RGTI stock has declined by over 25% year-to-date. See more RGTI analyst ratings Is IonQ a Good Stock to Buy? IonQ, a pure-play quantum computing company using trapped-ion technology, offers its systems through major cloud platforms. It has emerged as a standout in the sector, with its stock soaring over 450% in the past year. The company is ahead of competitors in getting its quantum systems to market, having already sold hardware to Amazon's (AMZN) AWS and Google (GOOGL) Cloud. Its systems feature all-to-all connectivity and boast an industry-leading 99.9% two-qubit gate fidelity, meaning highly accurate results. With a few units already sold and rising demand, more launches are expected soon. Notably, two-qubit gate fidelity measures how accurately a quantum computer links two qubits. IonQ's 99.9% fidelity signals low error rates, key for building reliable, scalable systems. What Is IonQ Forecast for 2025? This month, top analysts from Needham, Benchmark, and Craig-Hallum reiterated their Buy ratings on IONQ stock. Overall, four out of five analysts currently covering the stock have issued Buy recommendations. Meanwhile, the average IonQ shareprice target of $43 suggests an 8.5% upside from current levels. See more IONQ analyst ratings
Globe and Mail
an hour ago
- Globe and Mail
Is Lucid Group a Millionaire-Maker Stock?
Smaller stocks are ideal for investors willing to take additional risks for the potential for multi-bagger returns. With a stock price of just $2.22 (corresponding to a market cap of $6.77 billion), Lucid Group (NASDAQ: LCID) fits into this category. But the electric vehicle maker didn't get this cheap by accident. Let's dig deeper to see if it can overcome its operational challenges and generate massive wealth over the long term. What went wrong for Lucid? Looking at Lucid's stock price chart, it is clear that something went terribly wrong for the company. Shares have fallen by a whopping 96% from their all-time high of $58 (reached in early 2021), which means many early investors have been almost completely wiped out. The problem had a lot to do with macroeconomic factors outside management's control. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » For starters, post-pandemic inflation caused the Federal Reserve to aggressively hike interest rates, making it harder for consumers to access credit to afford Lucid's high-priced sedans (the flagship Lucid Air starts at $71,400). Furthermore, EV demand began to slow as early adopters were reached and more competition entered the market. Even the industry leader Tesla has faced pressure, with its automotive revenue dropping by 6% in 2024 -- before Elon Musk's overt political involvement made the situation even worse in 2025. However, unlike Tesla, Lucid lacks the economies of scale to maintain profitability or keep losses under control, leading to spiraling cash burn. While first-quarter revenue grew by a respectable 36% year over year to $235 million, the company still burned through an eye-watering $692 million in just that quarter. Lucid stays afloat through outside sources of capital, such as shareholder dilution (creating and selling more stock). But this has likely contributed to its underperformance. Could Tesla's weakness be Lucid's strength? Tesla's situation worsened in 2025, with first-quarter automotive sales dropping 20% year over year amid consumer boycotts and political backlash related to its CEO. This weakness could create an opportunity for Lucid to capture market share because it competes directly with Tesla's flagship Model S in the full-size luxury sedan segment. This opportunity could be compounded by the possible passing of Trump's "One Big, Beautiful Bill" legislation, which aims to remove the $7,500 tax credit for EV purchases. According to CNN, the bill's current wording might exempt small players like Lucid, giving them a tremendous edge over their larger rivals -- although this legislation is still working its way through Congress, and nothing is finalized yet. Trump's 25% tariff on foreign cars may also advantage Lucid by hurting imported luxury EVs from brands like Audi and Mercedes. Is Lucid stock a buy? Lucid definitely enjoys a lot of encouraging tailwinds from Tesla's political quagmire and Trump's trade and economic policies. That said, whether or not it turns into a millionaire-maker stock will probably depend on the rollout of its new SUV platform, Gravity, launched in late 2024. Gravity is a make-or-break product for Lucid because SUVs tend to be more popular than sedans in the US. The vehicle likely contributed to Lucid's high top-line growth rate in the first quarter. And analysts seem optimistic that this trend can continue with a consensus estimate of Lucid hitting $1.4 billion in total revenue in 2025, which would represent a growth rate of 73.3%. With a price-to-sales (P/S) ratio of 6.7, Lucid's stock looks reasonably priced, considering its growth potential (Tesla has a P/S of 11). And while some investors may want to wait for more information, I think it might finally be time to pull the trigger and bet on a bull run. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
an hour ago
- Globe and Mail
Could Nvidia's Projected 9% Annual Returns Through 2030 Be the Smartest Risk-Adjusted Play in Tech?
Forget chasing the next artificial intelligence (AI) unicorn. While venture capitalists funnel billions into speculative start-ups, Nvidia (NASDAQ: NVDA) continues to dominate the infrastructure powering the entire industry. A projected 9% annual return may not sound thrilling, but it could be the smartest risk-adjusted investment in tech this decade. According to Coatue Management, an American technology-focused investment firm, Nvidia's market cap could grow from $3.5 trillion today to $5.6 trillion by 2030, implying a 9.6% compound annual growth rate from current levels. That's a far cry from its recent hypergrowth, but it reflects a business that's maturing into its role as the backbone of the AI economy. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's why Nvidia remains a compelling buy -- even as its pace of growth slows. The ecosystem nobody else can match Think of Nvidia as the Apple of AI. Just as the iPhone represents great hardware backed by an impenetrable ecosystem, Nvidia has built something far more valuable than fast chips -- it has created the core operating system for AI. The company's Compute Unified Device Architecture (CUDA) software platform has become the default language for AI development, with over 4 million developers now embedded in the ecosystem. Switching to a competitor means rewriting years of code, creating a switching cost that grows stronger every day. But Nvidia isn't stopping at software dominance. The company has systematically expanded into every layer of the AI stack. DGX Cloud lets companies rent AI supercomputers by the hour, democratizing access to massive computing power. New enterprise platforms help businesses deploy AI without armies of data scientists. The Omniverse platform powers everything from factory simulations to digital twins of entire cities, while the majority of automakers now rely on Nvidia's DRIVE platform for autonomous vehicle development. This isn't diversification for its own sake. Each new product strengthens the core GPU business. A company using Nvidia for robotics simulations naturally gravitates toward Nvidia chips for its data centers. The network effects compound with each customer. Why single-digit returns beat moonshots Yes, 9% annual returns sound pedestrian compared to Nvidia's recent rocket ride. But consider the mathematical reality -- when you're already generating $44 billion in quarterly revenue from a $3.5 trillion base, hypergrowth becomes virtually impossible. What matters is that this 9% comes with something venture-backed AI start-ups can't offer: Certainty. The company's Blackwell architecture was fully booked within months of launch, with shipments stretching into late 2025. In its most recent quarter, data center revenue surged 73% year over year to $39.1 billion, while gross margins -- excluding one-time charges -- hover above 70%. That's the kind of pricing power that competitors can only dream about. And with $54 billion in cash and marketable securities, Nvidia can weather any storm while continuing to invest aggressively. But here's what growth projections might be missing: Nvidia isn't just selling more chips to the same customers. It's expanding the entire AI market. Right now, AI remains largely confined to tech giants and cutting-edge enterprises -- not because of cost, but because of complexity. Nvidia's push to simplify deployment through easier tools, pre-trained models, and plug-and-play solutions removes the technical barriers. When every small business can implement AI without a team of engineers, the addressable market doesn't just grow -- it explodes. Think of local governments optimizing traffic patterns, small manufacturers predicting equipment failures, or family doctors using AI diagnostics. The market expansion opportunity dwarfs any competition concerns. Addressing the elephant in the room Yes, Nvidia trades at a forward price-to-earnings (P/E) ratio of 34 -- a premium by traditional standards. And yes, Advanced Micro Devices is gaining ground while cloud giants like Microsoft and Alphabet are building their own AI chips. Meanwhile, U.S. export restrictions have cut off a significant portion of China-related revenue, removing an estimated $8 billion in near-term sales. But what's the alternative? Betting on early stage AI start-ups with no profits, no moat, and unproven demand? Nvidia's valuation isn't cheap, but it reflects something rare in tech: Dominance with durability. The real opportunity hiding in plain sight Wall Street keeps searching for the next big thing. But the best tech investment of the next decade may not come from a stealth start-up or a buzzy IPO. It's already here, hiding in plain sight. Nvidia, with its projected 9% annual returns, offers what's become rare in technology: Scale, certainty, and sustained innovation. While others gamble on speculative AI plays, Nvidia continues to compound wealth with the dependability of a utility and the velocity of a start-up. The AI revolution isn't slowing. It's accelerating. Every breakthrough, from autonomous vehicles to digital twins, reinforces Nvidia's grip on the infrastructure that powers it all. Sometimes the smartest move isn't chasing the next Nvidia. It's owning the one that already reshaped the future -- and is still just getting started. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
