5 mins readIntrigued by NFTs but not sure where to start? Many have suggested that NFTs are overpriced and don't possess much utility. If this is keeping you from investing in them, why not dip your toe into the waters of buying NFT stocks first? By doing this, you can gain an understanding of how they work without worrying about any potential risks or losses.
What Does NFT Stand For?
Non-fungible tokens (NFTs) are a new form of digital asset that can represent ownership of various items such as Photos, Videos, Artwork, Music, Tweets, Code and other types.
NFTs, the one-of-a-kind digital assets that arrived in the world when cryptocurrency began to take off in 2014, have become a trending choice for investors today. In contrast with other investments, every single Non-Fungible Token (NFT) is distinctive – not only are they rare and desirable but each piece of content carries its own value since it cannot be replaced or replicated.
5 NFT Stocks To Invest In
If you’re interested in exploring NFTs as an investment but not ready to purchase individual assets, consider investing in NFT stocks. You may not be able to buy shares of the tokens themselves, however, you can get stock from businesses engaged with creating, trading, or technology related to NFTs. Here's a glimpse at 10 of the greatest options for your potential future portfolio – check them out now!
McDonald’s (MCD)
When reflecting on the intersection of NFTs and stocks, McDonald's may not be the first brand that comes to mind. However, with their ten trademark applications submitted in February 2022 awaiting approval, they are already making strides toward establishing a presence in the metaverse.
McDonald's is pursuing a trademark for its own virtual eatery that provides customers with physical and digital products, entertainment services such as online concerts and downloadable multimedia files, video files, and Non-Fungible Tokens (NFTs).
McDonald's is not only involved in NFTs and the metaverse but also a secure blue-chip stock as well as a Dividend Aristocrat. Thus, it makes an excellent choice for balancing some of the riskier stocks on your portfolio list.
Nvidia (NVDA)
With a long-standing record of providing innovative solutions in the fields of graphics, data, and networking, Nvidia is now quickly emerging as an important player in the Non-Fungible Token (NFT) sector. Last year at the SIGGRAPH computer-graphics conference they revealed their plans to develop multiple projects that revolve around metaverse - these include neural graphics, a cloud engine for avatars, and a new version of Omniverse platform where developers can generate applications with Pixar Animation Studios' framework.
Omniverse consists of Nvidia's PhysX physics simulation technology and the RTX Renderer. For those looking to create their own 3D work, there is a free version available. In addition, Nvidia has partnered with various marketplaces that assist creators in selling their content - as reported by Reuters.
Shopify (SHOP)
With this e-commerce platform, customers have the ability to purchase and sell goods with ease. Shopify is in the process of beta testing a program that would let store owners offer NFTs on their stores - an innovative approach to digital art transactions. As it stands right now, Shopify appears to be well-positioned as one of the leading e-commerce platforms available today. If you're looking for potential gains on your stock price though, you'll likely need some patience before seeing major progressions!
Last year, Shopify stock suffered a steep decline from November 2021 to September 2022. In response to this dip, CEO Tobi Lutke took action by making changes such as downsizing 10% of the staff and appointing Jeff Hoffmeister — former head of technology investment banking at Morgan Stanley — as CFO in July 2022. As it stands now, these measures seem successful: since September 2022, the stocks have gained an impressive 42%. It looks like Shopify is well on its way to success within the next couple of years!
Mattel Inc. (MAT)
With over 77 years in the toy business, Mattel has crafted several iconic brands such as Barbie, Hot Wheels, and Fisher-Price. To take advantage of its legacy and join the NFT craze, Mattel recently unveiled a new marketplace for non-fungible tokens on its own collector and direct-to-consumer platform -Mattel Creations. Now fans can purchase digital assets representing their favorite classic toys from Mattel!
Last December, Mattel introduced its Hot Wheels NFT Garage Series 4. In the following month, new collections of Monster High and Masters of the Universe were available on their Digital Collectibles Marketplace - without needing any kind of cryptocurrency! Moreover, later this year they will be launching a peer-to-peer platform where users can trade their NFTs freely. For investors looking for value stocks right now with great potential to grow. Mattel is an excellent choice with its low P/E ratio of 12.38 and a forecasted price target 30% higher than its current $18.31 rate per share.
Cloudflare (NET)
Investing in this streaming service could be a smart decision because it is not limited to the NFT market, but rather focuses on web performance and security solutions. It has already established itself as a leader in the significant $152 billion software-as-a-service industry, making it an appealing option for any investor looking to make money from its investments.
Video content creators who store their videos on Cloudflare Stream can easily mint NFTs for their work via OpenSea, and then sync the token IDs and contact addresses with these same videos. This company has seen great success of late in terms of large customer acquisitions. Moreover, Q1 sales estimates are currently surpassing analyst expectations making this a very successful start to 2023!
Final Take
NFTs have taken over the market, and investing in reliable companies like McDonald's and eBay is a great way to get involved. However, if you're looking for something more daring and want to take on some risk, there are also speculative stocks available that could skyrocket or be completely worthless down the line.
Before investing in NFT stocks, consult with an investment expert to decide how they fit into your portfolio. Be sure you are well-informed and never invest funds that could potentially be detrimental if lost.
