10 NFT Stocks To Invest In

Are You Curious About NFT Stocks to Watch Right Now? Perhaps you’re uncertain where to start when it comes to investing in NFTs. There has been some criticism that they are overpriced or lack utility, which could explain why some are hesitating to invest in NFTs. If that’s the case for you, why not give investing in NFT stocks a try and test the waters first?

Take a look at these top NFT stocks to help you get started.

What Does NFT Stand For?

NFT, short for non-fungible token, is a type of digital asset which can represent ownership over almost anything imaginable. Examples include:

Digital or physical art
Music
Real estate
Tweets
Video game avatars.
Videos
NFTs were first created in 2014 as the shift towards cryptocurrency opened up investment opportunities in digital assets. Nowadays, they’re an increasingly sought-after investment option due to each NFT’s unique identity.

10 NFT Stocks To Invest In

Are you intrigued by NFTs as an investment but unsure about buying individual tokens, consider investing in NFT stocks instead. While you cannot purchase shares of actual NFTs themselves, stockholders can purchase stock in companies involved with creation, trade or technology related to NFTs. Here is a look at 10 of the best NFT stocks currently available for consideration.

1. Dolphin Entertainment (DLPN)
This development firm specializes in entertainment marketing and premium content creation. Its subsidiaries include 42West, The Door, Viewpoint Creative and Shore Fire Media.

If you’re interested in NFTs, its focus on the digital realm makes it worth considering, especially since its flagship collection – Creature Chronicles – sold out quickly after launch.

In the third quarter of 2022, Dolphin reported a slight year-over-year growth in revenue. Though it had lost money the prior quarter and is feeling the effects of the FTX collapse like other partners, analysts have set an analyst price target close to 300% above its current $2.10 share price as of Feb. 10. Analysts anticipate Dolphin will become profitable by 2023.

2. eBay (EBAY)
eBay is one of the world’s best-known brands and a household name. As an investor opportunity, its expertise in e-commerce makes it a desirable pick.

Since May 2021, eBay has allowed customers to buy and sell NFTs. Last June, it announced the acquisition of KnownOrigin – a leading NFT marketplace – in what could further cement eBay’s position as the premier destination for collectors of this technology.

eBay is also creating its own exclusive NFTs. One example is a canvas created in collaboration with Kayvon Thibodeaux, an Oregon Ducks football player.

Yahoo Finance currently reports a “buy” consensus. While not all analysts concur, some believe the stock prices have been slow due to consumers returning to pre-pandemic shopping habits. According to Bloomberg, eBay recently implemented authenticity guarantees and other changes in payments, advertising and other areas which could boost revenues this year; they were even included on their stock watchlist for 2023.

3. Cloudflare (NET)
This streaming service could be a good investment choice since it’s not an NFT company per se, but rather a web performance and security company and leader in the $152 billion software-as-a-service industry.

Video creators storing their videos on Cloudflare Stream can create NFTs for their work using OpenSea’s platform, and then link the token IDs and contact addresses with their videos. Recently, the company has seen strong growth in large customer acquisition. Looking ahead, Q1 sales and earnings estimates from OpenSea exceeded analyst expectations in 2023.

4. McDonald’s (MCD)
McDonald’s may not be the first company that comes to mind when considering “NFT stock,” but the fast-food chain already has a foot in the metaverse pending approval of 10 trademark applications it submitted in February 2022.

McDonald’s wants to patent a virtual restaurant with both virtual and physical products, entertainment services like online concerts and downloadable multimedia files such as video files and NFTs (Near Field Transistors).

McDonald’s is an interesting choice in this roundup due to its involvement with NFTs and the metaverse, but it also serves as a reliable blue-chip stock and Dividend Aristocrat. That makes McDonald’s an appropriate counterbalance to some of the riskier stocks included here.

5. Mattel Inc. (MAT)
With more than 77 years of producing iconic toys under brands such as Barbie, Hot Wheels and Fisher-Price, Mattel was well positioned to explore NFTs representing those brands. Recently the California toy manufacturer opened an NFT marketplace on Mattel Creations – its collector and direct-to-consumer platform.

On December 22, 2022, Mattel Creations released Series 4 of its NFT Garage collection. New collections such as Monster High and Masters of the Universe followed throughout January. Consumers don’t need to be tech-savvy to join in; no cryptocurrency is required for purchases on Mattel Creations Digital Collectibles Marketplace. Soon enough this year collectors will have access to trading their NFTs on Mattel’s peer-to-peer platform.

Mattel stock is currently a great value, boasting a P/E ratio of 12.38 and an 12-month price target approximately 30% above its current level of $18.31.

6. Nvidia (NVDA)
Nvidia is renowned for its graphics, data and networking solutions – but it’s also developing a presence in the NFT industry. At last year’s SIGGRAPH computer-graphics conference, Nvidia revealed that they are working on several metaverse projects including neural graphics, cloud engine for avatars and an updated version of their Omniverse platform which allows developers to create and launch metaverse applications using Pixar Animation Studios’ framework.

Other Omniverse components include Nvidia’s PhysX simulation technology and the RTX Renderer, both free for individual creators. Nvidia also has partnerships with several marketplaces where 3D artists can sell their works, according to Reuters.

7. Funko (FNKO)
Funko is renowned for their trendy character toys with big heads. Many designs are in high demand and sell for hundreds, if not thousands, of dollars. Recently the brand introduced Digital Pop NFT art; packs start at $10 and some buyers even receive a coin to exchange for a physical toy with their purchase.

Funko shares have taken a significant hit after the company revised its earnings-per-share guidance downward for the full year, leading some investment firms to downgrade their recommendations. But some analysts still have faith in the stock and believe it to be undervalued after all. If these predictions prove correct, investors who buy now and hold on could reap rewards of their patience. Currently trading at $10.33 as of Feb. 10th, Yahoo Finance has assigned an one-year price target of $12.63 to this stock – currently trading at $10.33

8. Shopify (SHOP)
Shopify is an e-commerce platform that puts control of buying and selling in the hands of its users. With their platform, consumers have full control over their purchases.

Shopify is currently testing an NFT program that would enable merchants to sell NFTs directly from their stores. No matter the future holds for this market, Shopify seems to have cemented itself as the premier e-commerce platform – though you won’t see significant increases in stock price until after 2020.

Shopify stock has taken a beating, losing most of its value from November 2021 to September 2022. According to CEO Tobi Lutke in a July 2022 blog post, this decline stems from an incorrect assumption that the pandemic-driven surge in ecommerce revenue meant a permanent shift.

Some analysts anticipate the changes implemented since then, such as a 10% staff reduction and the appointment of Jeff Hoffmeister as CFO — former head of technology investment banking at Morgan Stanley — could help turn things around over the next couple of years. The stock has gained over 42% since September 2022.

9. Takung Art (TKAT)
Takung Art has made a name for itself selling physical artwork – especially Asian artwork – through shared asset ownership, which allows multiple people to own one piece of art together, encouraging more investors into the market.

Takung Art launched its NFT trading platform, NFTOEO, in April 2022. While it could take some time before NFT marketplaces reach their full potential, stocks like Takung Art – which has yet to become profitable and trades at $1.03 a share as of Feb. 10 – could benefit from this development.

10. Jiayin Group (JFIN)
Jiayin Group hasn’t made headlines or caused much movement on the stock market yet. The Shanghai-based high-tech financial services firm is yet to venture into NFTs, though a series of tweets in December 2020 hinted that this transition might take place sooner rather than later.

Last year, speculation that NFTs would take off spurred a brief rally in share price to around $3.22 as of Feb. 10. Although no official NFT announcements have been made yet, Jiayin has demonstrated its digital art capabilities and could easily transition into NFTs when the time is right. Meanwhile, Jiayin continues to experience steady yet consistent growth in earnings and profits over this period.

Final Analysis

NFT stability seems to be here for a long time. It is safe to invest in companies such as eBay or McDonald’s to gain exposure. However, riskier stocks may eventually fail or prove ineffective.

Before investing in NFT stocks, consult a financial advisor to see how they could fit into your portfolio. Do thorough research and never invest money you cannot afford to lose.

NFT Stock FAQ
Here are answers to some of the most frequently asked questions about NFTs and investing in NFT stocks.

 How Does an NFT Function?
NFTs function similarly to cryptocurrency in that they provide a platform for purchasing and selling digital assets. An NFT can be anything that someone wishes to purchase or sell, provided each is distinct.
For instance, distributing thousands of prints of the same piece of art would not qualify as an NFT. On the other hand, selling one unique work of art — digital or physical — qualifies as an NFT.

Are NFTs Cryptocurrencies?
No. While both use blockchain technology, NFTs and cryptocurrency are distinct. NFTs are non-fungible – each NFT has a unique address – while cryptocurrency is fungible, meaning any bitcoin can be exchanged for another bitcoin with no value loss or gain.

What does it mean to be non-fungible? 

Non-fungible refers to an item that is unique, and therefore does not have a standard price.
NFTs cannot be considered fungible as there is no universal NFT value. By contrast, physical money in our global economy is considered fungible since it has a set value and even an exchange rate when exchanging currencies for currencies.

What determines an NFT’s Value?
An NFT’s value is ultimately decided by what an individual investor places on it. It works similarly to collector’s items: one person may not see any worth in an old baseball card, while another recognizes it as highly collectible.

What is an NFT stock?
An NFT stock is a security that gives you ownership of a small piece of the company involved in NFTs. This could include operating an exchange, building hardware or software needed for production, etc.

What is the best NFT stock?
Which NFT stock is ideal for you depends on your budget, risk tolerance and investing objectives.
If you’re just interested in investing in NFT stocks at a very low cost, Jiayin Group could be a suitable pick – it is highly speculative but costs less than $4. Nvidia would be an appropriate option for serious investors wanting to invest in companies directly involved with NFTs; McDonald’s might provide better security if long-term stability is what you’re after.