When non-fungible token (NFT) sales cracked $2 billion in the first quester of 2021, the running consensus was the bubble was about to burst. Then sales continued to rise. And growth isn’t slowing down just yet. That being said, NFT marketplaces can be difficult to navigate. And even harder to spot a good deal. However, you don’t have to be an art aficionado to make money from NFTs. In fact, you don’t even need to invest in actual NFTs. That’s what these NFT stocks are for.

First off, let’s start with the basics. NFTs can cover a wide range of digital assets. Among the most notable are of course the digital collage by Beeple, which sold for $69 million at a Christie’s auction. But they can just as easily be video clips, music, sports collectibles or even video games. The key point here is that the NFT data is stored on a digital ledger. And that ledger certifies that the NFT in question is indeed unique. That’s the key here. Some folks are willing to shell out big bucks for the authenticated version. But the screenshot or audio-ripped copy, not so much.

Now onto the companies poised to make a big splash in the NFT space…

If you happen to find the next big NFT artist, good for you. But figuring out which 12-year-old coder is making a splash before the news gets out is a needle-in-a-haystack mission. But now that Wall Street has seen that there’s money to be made in NFTs, it’s a lot easier to figure out what NFT stocks are in the best position. Especially since there are much fewer of them.

However, even though there are dozens of companies making a play in the NFT space, some are in a better position than others.

The Five Best NFT Stocks Available Now

• Funko, Inc. (Nasdaq: FNKO)
• DraftKings, Inc. (Nasdaq: DKNG)
• Mattel, Inc. (Nasdaq: MAT)
• Cloudflare, Inc. (NYSE: NET)
• Twitter, Inc. (Nasdaq: TWTR)

Funko, Inc.

If you know Funko, it’s probably for its licensed pop culture collectibles. This relatively new company (founded in 2017) has proven to be agile among uncertainty in the markets. And with its foray into NFTs, it’s looking to continue that model. Second quarter revenue is up more than 140% year-over-year. And the company is looking to continue that trend.

“Our teams delivered the largest top line quarter in Company history,” said Funko CEO Brian Mariotti. “Second quarter net sales more than doubled versus a year ago and also eclipsed 2019 levels, reflecting broad-based strength across our products, channels and regions.”

The more pertinent news here though is that Funko acquired a majority stake in the NFT holding tracker, TokenWave this year. And it’s also launched a line of NFTs, called Funko Digital Pop! The packs start at just $9.99 a piece. They are currently available for purchase though the WAX platform – a decentralized entertainment network.

Funko had been a hot stock, even before it entered into NFT territory. But this additional revenue stream makes it a one of the most promising NFT stocks out there to date.

DraftKings, Inc.

When DraftKings finally went public last year, investor took note. And for good reason. At the time of the DraftKings IPO, it held a 60% share of the sports betting market. It offers fantasy sports, regular sports betting and iGaming to its customers. And like Funko, its year-over-year revenue numbers have increased dramatically. In the second quarter revenue was up an impressive 297%. Meanwhile, net losses were down 51.8%. Things are looking good for DraftKings as an investment in general.

But what makes it one of the best NFT stocks is the recently introduced DraftKings Marketplace. Here, collectors can buy and sell digital collectibles. It’s something akin to baseball card collecting… but without the physical cards. And we already know there’s a big market for this. When the Chicago Bulls launched its first NFT collection, it sold out in 90 seconds. If DraftKings early foray into NFTs allows it to corner the market on sports collectibles, it will surely earn its spot as one of the best NFT stocks money can buy.

Mattel, Inc.

Next up is one of the biggest household names in the toy market. Over the years, Mattel has been responsible for bringing iconic toys like Barbie, Hot Wheels, American Girl and (a personal favorite) UNO to the market.

But Mattel isn’t sitting back and resting on its laurels. The company has been somewhat quietly, but successfully launching NFTs based on some of the company’s most iconic brands. This shows that the company is making strides to connect with current market trends, while innovating and updating the way it connects with its customers.

Mattel already has seen strong sales numbers of late. Partially due to stuck-at-home parents buying toys to keep their little ones entertained. The company logged net sales of more than $874 million in the first quarter. And interestingly, Barbie sales shot up an impressive 87% year-over-year. If the company chooses to capitalize off of the popularity of its Barbie line and introduce a Barbie NFT, that has the potential to be a major catalyst event. Realistically, it should only be a matter of time before we see a Barbie NFT. But when we do, Mattel will surely be one of the best NFT stocks on this list.

Cloudflare, Inc.

In seemingly no tie at all, CloudFlare has risen to be one of the most valuable tech companies out there. Even if it’s not quite a household name. Its market cap has nearly doubled since the start of the pandemic. And it continues to have momentum on its side.

CloudFlare’s bread and butter is its cloud computing platform. This includes high level security solutions for both public and private cloud services. It also offers an array of business performance tools. It provides packages for content delivery, software development kits, website development, analytics tools and a whole bunch of other stuff.

But the reason CloudFlare is on our list of the best NFT stocks is because it recently announced that CloudFlare Stream (its video sharing service) supports NFTs. For the uninitiated, CloudFlare Stream’s strong suit is that it speeds of the delivery of streaming video. It’s also a cheaper method than many other competitors. But now, creators using this platform can actually embed NFTs into their videos.

This can allow those creators to more efficiently deliver their videos via the internet… while also affirming ownership rights of that video. It’s a much more efficient way to maintain copyright on content than currently exists. And if it catches on, it could become the gold standard for content creators to share videos. So as long as CloudFlare stays ahead of the pack here, it remains one of the best NFT stocks you can get your hands on.

Twitter, Inc.  

By far the biggest company on this list – at least in terms of market cap – Twitter probably isn’t the first company you think of when you think of NFTs. But one day, it might be.

Of course, it will probably always be best known as the microblogging site where people can talk smack to each other… And occasionally share useful information. But this year, CEO Jack Dorsey testing the NFT waters and sold his first tweet as an NFT for a ridiculous $2.9 million. And that seemingly set the wheels in motion. Not long after that, Twitter announced it would be in the NFT-making business. The announcement, naturally, came via a tweet:

140 free NFTs for 140 of you, besties pic.twitter.com/0Pm0tNhIRg

— Twitter (@Twitter) June 30, 2021

Furthermore, other celebrities have been experimenting with monetizing their tweets in the form of NFTs. Mark Cuban sold one of his tweets on Valuables for 0.56 Ethereum. If nothing else, Twitter is earning an interesting place in the NFT market. And if it catches on, Twitter could play a key role in the collectability of NFTs. And that makes Twitter one of the best NFT stocks available to date.

The Bottom Line on NFT Stocks

NFTs have the potential to be one of the most disruptive technologies since the introduction of blockchain. And they are quickly gaining more and more traction. Just take a look at this chart, for example:

The beginning of 2021 saw a rapid rise in interest from collectors. And that interest is nowhere near tapering off. That’s why these NFT stocks hold so much promise.

However, if you’re looking for additional ways to play the crypto space, we suggest signing up for Manward Financial Digest. In it, crypto expert Andy Snyder helps guide investors towards the most promising next-generation cryptocurrencies in a position to outpace the gains of legacy cryptos like Bitcoin and Ethereum. And all you have to do to learn more is enter your email address in the box below.

The post 5 NFT Stocks to Capitalize Off the Digital Craze appeared first on Investment U.

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By: Matthew Makowski
Title: 5 NFT Stocks to Capitalize Off the Digital Craze
Sourced From: investmentu.com/nft-stocks/
Published Date: Tue, 28 Sep 2021 18:04:32 +0000

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