Curious about NFTs but don’t know where to begin? There is the idea that NFTs are overpriced, or that they lack utility. This might explain why some are on the fence about buying into NFTs. If that’s the case, you might want to try your hand at investing in NFT stocks to test the investing waters.
Take a look at these top NFT stocks to help you get started.
What Does NFT Stand For?
NFT is short for non-fungible token. These digital assets can represent ownership of almost anything, including:
NFTs were first introduced in 2014 as the shift toward cryptocurrency opened the door for investing in digital assets. They’re an increasingly popular investment option today. What sets them apart from other investments is that each NFT is unique.
10 NFT Stocks To Invest In
If you think NFTs show promise as an investment but you aren’t ready to buy individual tokens, consider investing in a company that’s involved with NFT creation, trade or technology. Here’s a look at 10 NFT stocks to check out right now.
1. Dolphin Entertainment (DLPN)
This development firm handles entertainment marketing and premium content. Its subsidiaries include:
- Fire Media
- The Door and Shore
- Viewpoint Creative
Its focus on the digital realm makes it worth considering if you’re interested in NFTs, especially since it has a separate NFT division. It recently introduced its own NFT marketplace called FTX.US, positioning the brand as an NFT leader.
The company reported a 19% year-over-year increase in revenue in the second quarter of 2022 and has an analyst price target of about 140% above its current $5.05 share price as of August 15.
2. EBay (EBAY)
EBay makes the list as one of the most well-known brands — and is, arguably, a household name. It’s also a relevant investment option because of its expertise in e-commerce.
The company has allowed customers to buy and sell NFTs on the eBay website since May 2021. And in June of this year, it announced it had acquired KnownOrigin, a leading NFT marketplace, in a deal that could help eBay position itself as a top site for NFT collectors.
EBay is also cultivating its own exclusive NFTs. One example is a canvas made in partnership with Kayvon Thibodeaux, a football player for the Oregon Ducks. While not all analysts agree with the current “buy” consensus reported by Yahoo Finance, the fact that eBay continues to adapt to meet the demands of changing markets is impressive.
3. Cloudflare (NET)
This streaming service could be a solid investment option because it’s not an “NFT company,” per se. Rather, it’s web performance and security company and a leader in the $152 billion software-as-service industry.
Video creators who store their videos on Cloudflare Streaming can create NFTs for their work on a platform like OpenSea, and then connect the token IDs and contact addresses with their videos. The company has seen strong growth in large-customer acquisition recently and could be a solid growth stock if it can keep up the momentum.
4. McDonald’s (MCD)
McDonald’s isn’t the first company anyone thinks of when they think “NFT stock,” but the fast-food chain already has one foot in the metaverse pending the approval of 10 trademark applications it submitted in February.
McDonald’s wants to trademark a virtual restaurant with virtual and physical products, entertainment services like online concerts and downloadable multimedia files, video files and NFTs.
Aside from its involvement in NFTs and the metaverse in general, McDonald’s is a solid blue-chip stock and dividend aristocrat. That makes it a good choice to balance some of the riskier stocks in this roundup.
Good To Know
You need a cryptocurrency wallet in order to buy, sell or trade NFTs. However, you can invest in many NFT businesses through the stock market.
5. Sino-Global (SGLY)
In March 2021, Sino-Global announced a partnership with CyberMiles, a blockchain platform based in Hong Kong, to introduce a robust NFT exchange. Today the platform is the first of its kind to allow creators to sell their digital art within a platform specifically designed for NFTs, serving as a bridge between the digital and physical world of art and investing.
The company recently announced an expansion into a New Jersey internet data center to support its growing distributed storage service and grow its cryptocurrency and blockchain-related businesses.
6. Twitter (TWTR)
The social media platform is always looking for ways to stay relevant — especially when it comes to monetization. The first indication of a Twitter and an NFT partnership was when founder Jack Dorsey sold his first-ever tweet for $2.5 million. Now, Twitter users who subscribe to the social media platform’s new Twitter Blue service can create NFT profile pictures directly from a connected digital wallet.
Although Twitter’s influence is undeniable, it’s important to note that it could be a short-term investment. Elon Musk’s purchase of the company is still in limbo. If the sale goes through, Musk will buy out investors and take the company private.
7. Funko (FNKO)
The brand is well known for its trendy character toys with big heads. Various designs are already in high demand and resell for hundreds, if not thousands, of dollars. The company recently introduced Digital Funko Pop! NFT art. Packs of art start at $10, and some buyers will also receive a coin for a physical toy with their purchase.
The company seems to be on the right track — it reported a 33.7% year-over-year net increase in sales during the second quarter of 2022.
8. Shopify Inc. (SHOP)
This ecommerce platform puts buying and selling in the hands of the consumer. When the Shopify President Harley Finkelstein wrote a tweet about NFTs, the stock saw a 19% increase. The rise didn’t last, which indicates that the jump may have been solely because of the news.
That could be good news for investors, as Shopify is currently beta testing an NFT program that would allow merchants to sell NFTs from their stores. But no matter what the future holds for the NFT market, Shopify seems to have cemented its place as the most popular ecommerce platform.
9. Takung Art (TKAT)
Takung Art made its mark selling physical artwork — specifically, Asian artwork. It is unique because it allows for shared asset ownership. This means that multiple people can own a piece of art together, allowing more investors to enter the market.
The company launched its own NFT trading platform, NFTOEO, in April. It could take time before NFT marketplaces come into their own, but once they do, stocks like Takung Art, which currently trades at just $1.92 a share, could really take off.
10. Jiayin Group (JFIN)
This stock isn’t making headlines or causing waves on the stock market. The high-tech financial services company is based in Shanghai. Right now, Jiayin Group isn’t working with NFTs — yet. A series of tweets in December 2020 tipped off investors who now expect to see a shift to NFTs.
And earlier this year, speculation that the shift would happen soon drove a brief rally in share price, which is currently hovering around $2.60.
With the current momentum, it’s safe to say that NFTs aren’t going anywhere, and investing in established companies such as McDonald’s and eBay is a relatively safe way to get exposure to them. The more speculative stocks, on the other hand, could take off at some point — or prove worthless in the long run.
NFT Stock FAQHere are the answers to some of the most frequently asked questions about NFTs and investing in NFT stocks.
- How does an NFT work?
- NFTs are similar to cryptocurrency because they offer a way to buy and sell digital assets. An NFT can be almost anything that someone wants to buy or sell. For example, distributing thousands of prints of the same piece of art wouldn't qualify as an NFT. Selling a single piece of unique art – digital or physical – does qualify as an NFT.
- Are NFTs cryptocurrency?
- No. NFTs and cryptocurrency are similar because they use blockchain technology, but they are not the same. NFTs are non-fungible, meaning that each NFT is unique, while cryptocurrency is fungible, which means that any bitcoin, for example, can be exchanged for another bitcoin with no value lost or gained.
- Both cryptocurrency and NFTs are relatively new, but as blockchain technology expands, it will be easier for consumers to understand the difference between the two.
- What does non-fungible mean?
- NFTs are considered "non-fungible" because there is no standard value that applies to all NFTs. The physical money we use in the world economy has a standard value and even an exchange rate when trading currency for currency.
- What decides an NFT's value?
- An NFT's value is determined solely by the value an individual investor places on it. It's very similar to collector's items. One person may not see any value in an old baseball card, while someone else identifies it as highly collectible.
Daria Uhlig contributed to the reporting for this article.
Data is accurate as of Aug. 15, 2022, and subject to change.