In this article, we discuss the 10 best NFT stocks to buy now.
Non-fungible token (NFT) sales jumped to more than $2.5 billion in the first six months of 2021, according to digital analytics firm DappRadar. The figure reveals the explosion in popularity for the digital tokens this year, evidenced by the fact that NFT sales in 2020, per DappRadar calculations, stood at just $94 million. Investors eager to explore this new market should keep an eye on famous NFT stocks like Twitter, Inc. (NYSE: TWTR), Cloudflare, Inc. (NYSE: NET), and Mattel, Inc. (NASDAQ: MAT), among others.
These firms have helped make NFTs more popular. Twitter, Inc. (NYSE: TWTR) chief Jack Dorsey earlier this year sold his first tweet via NFT for nearly $3 million. Cloudflare, Inc. (NYSE: NET) has helped improve trust in digital tokens by the marketing of the new technology to enterprise clients through the products it offers. Even celebrities like Katy Perry and Jay-Z have climbed aboard the NFT train recently. In June, Perry announced the launch of a fan NFT, just days after Jay-Z revealed plans to do the same on the anniversary of his first album release.
An NFT is essentially a unit of data stored on a digital ledger. This ledger certifies that a digital asset is unique. It is used in entertainment, gaming, and artistic contexts. According to OpenSea, an NFT marketplace, monthly sales volumes for NFTs reached a record high in June, totaling $160 million. The market for NFTs seems skewed in favor of buyers. NonFungible.com, a website that tracks NFT transactions, claims that since March, when the NFT craze was at a record high, monthly buyers of NFTs have totaled up to 20,000 per week, outnumbering sellers.
There is little doubt that NFTs are fast transforming the world of online entertainment and gaming. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context in mind, here is our list of the 10 best NFT stocks to buy now. These were ranked keeping in mind analyst ratings, basic business fundamentals, and hedge fund sentiment.
Best NFT Stocks to Buy Now
10. Dolphin Entertainment, Inc. (NASDAQ: DLPN)
Number of Hedge Fund Holders: N/A
Dolphin Entertainment, Inc. (NASDAQ: DLPN) is placed tenth on our list of 10 best NFT stocks to buy now. The firm markets entertainment and premium content services and is based in Florida. It has a market cap of close to $76 million and posted $24 million in revenue last year. In March, the firm entered into an agreement with Hall of Fame Resort & Entertainment related to NFTs. The share price of the firm had skyrocketed earlier that week after it revealed that it would be launching a division solely focused on NFTs.
In March, investment advisory Maxim maintained a Buy rating on Dolphin Entertainment, Inc. (NASDAQ: DLPN) stock and raised the price target to $28 from $10, highlighting that the firm had established a new division to focus on NFTs.
On August 2, Dolphin Entertainment, Inc. (NASDAQ: DLPN) announced that it had entered into a partnership with FTX to create large-scale NFT marketplaces for consumers who were interested in major sporting and entertainment events.
Just like Twitter, Inc. (NYSE: TWTR), Cloudflare, Inc. (NYSE: NET), and Mattel, Inc. (NASDAQ: MAT), Dolphin Entertainment, Inc. (NASDAQ: DLPN) is one of the best NFT stocks to buy now.
9. Takung Art Co., Ltd. (NYSE: TKAT)
Number of Hedge Fund Holders: N/A
Takung Art Co., Ltd. (NYSE: TKAT) is ranked ninth on our list of 10 best NFT stocks to buy now. The company is based in Hong Kong. It owns and operates an online platform for artists, art dealers, and art investors who engage in trade of art pieces in China. In March this year, the share price of the firm had gained over 900% in a matter of weeks after hype on social media around NFT-related stocks. However, in the weeks afterwards, the shares started to fall and reached their lowest in May before bouncing back up.
On July 8, Takung Art Co., Ltd. (NYSE: TKAT) announced that it had entered into a deal with an institutional investor to raise $5 million in capital through the sale of 571,429 common shares at a price of $8.75 per share.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Takung Art Co., Ltd. (NYSE: TKAT) with 9,859 shares worth more than $335,000.
In addition to Twitter, Inc. (NYSE: TWTR), Cloudflare, Inc. (NYSE: NET), and Mattel, Inc. (NASDAQ: MAT), Takung Art Co., Ltd. (NYSE: TKAT) is one of the best NFT stocks to buy now.
8. ZK International Group Co., Ltd. (NASDAQ: ZKIN)
Number of Hedge Fund Holders: 3
ZK International Group Co., Ltd. (NASDAQ: ZKIN) is a Chinese company operating in the steel business. It is placed eighth on our list of 10 best NFT stocks to buy now. On July 21, the company announced that xSigma Corporation, a research and development unit of the firm, had completed the smart contract development for the launch of a non-fungible token marketplace. The company also revealed that the contract had passed an audit by Hashex. The marketplace is expected to go live this summer.
ZK International Group Co., Ltd. (NASDAQ: ZKIN) has a market cap of $81 million and posted more than $86 million in revenue last year. It was founded in 2015 and employs more than 350 people. The short interest on the stock is 3.88%.
At the end of the first quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1.03 million in ZK International Group Co., Ltd. (NASDAQ: ZKIN), up from 1 the preceding quarter worth $1.07 million.
Alongside Twitter, Inc. (NYSE: TWTR), Cloudflare, Inc. (NYSE: NET), and Mattel, Inc. (NASDAQ: MAT), ZK International Group Co., Ltd. (NASDAQ: ZKIN) is one of the best NFT stocks to buy now.
7. Cinedigm Corp. (NASDAQ: CIDM)
Number of Hedge Fund Holders: 5
Cinedigm Corp. (NASDAQ: CIDM) is a New York-based firm that markets movie, television, and other short form content. It is ranked seventh on our list of 10 best NFT stocks to buy now. In late April this year, the company announced the launch of Fandor Selects, the first NFT film label that would concentrate on releasing limited editions of classic films. The company was founded in 2000 and has a market cap of over $260 million. In earnings results for the fourth fiscal quarter, posted on July 14, the firm beat market expectations on revenue.
On August 2, investment advisory Alliance Global Partners raised the price target on Cinedigm Corp. (NASDAQ: CIDM) stock to $3.25 from $3 and maintained a Buy rating, noting that the firm was positioned for accelerated growth in the coming months.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Cinedigm Corp. (NASDAQ: CIDM) with 239,551 shares worth more than $400,000.
Twitter, Inc. (NYSE: TWTR), Cloudflare, Inc. (NYSE: NET), and Mattel, Inc. (NASDAQ: MAT) are some of the best NFT stocks to buy now, in addition to Cinedigm Corp. (NASDAQ: CIDM).
6. Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV)
Number of Hedge Fund Holders: 6
Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV) is placed sixth on our list of 10 best NFT stocks to buy now. The firm is headquartered in Ohio and markets resort and entertainment services. On August 2, the firm revealed that it had signed a partnership with Dolphin Entertainment for the launch of Playbook, an NFT collectible series that will showcase memorable plays from the careers of six famous athletes. The share price of the firm jumped close to 6.5% after the news was made public.
In March, investment advisory Maxim raised the price target on Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV) stock to $28 from $10, reiterating a Buy rating, appreciating the shift of the firm to a content ownership model.
At the end of the first quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $12.7 million in Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV), down from 7 the preceding quarter worth $528,000.
Twitter, Inc. (NYSE: TWTR), Cloudflare, Inc. (NYSE: NET), and Mattel, Inc. (NASDAQ: MAT) are some of the best NFT stocks to buy now, alongside Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV).
5. PLBY Group, Inc. (NASDAQ: PLBY)
Number of Hedge Fund Holders: 13
PLBY Group, Inc. (NASDAQ: PLBY) is ranked fifth on our list of 10 best NFT stocks to buy now. The firm operates from California and markets pleasure and leisure services. It was founded in 1953 and has a market cap of over $1 billion. On July 9, Playboy, a lifestyle brand owned by the firm, announced that it would be partnering with the Miami Beach Art Collection to present NFT art. The share price of the firm jumped over 2% after the announcement. The short interest on the stock is close to 13%.
On June 14, investment advisory Canaccord reiterated a Buy rating on PLBY Group, Inc. (NASDAQ: PLBY) stock with a price target of $52, noting that the firm would use cash from recent stock offerings to spur growth initiatives and accelerate product launches.
At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $561 million in PLBY Group, Inc. (NASDAQ: PLBY).
4. Funko, Inc. (NASDAQ: FNKO)
Number of Hedge Fund Holders: 14
Funko, Inc. (NASDAQ: FNKO) is a Washington-based firm that makes and sells pop culture consumer products. It is placed fourth on our list of 10 best NFT stocks to buy now. The firm was founded in 2017 and has a market cap of $741 million. The company has been praised by Bank of America for pressing forward into the NFTs and other revenue sources like toys, expanding beyond pop products. On August 5, the firm beat market expectations on earnings per share and revenue for the second quarter.
On May 13, investment advisory Bank of America raised the price target on Funko, Inc. (NASDAQ: FNKO) stock to $30 from $12 and upgraded the rating to Buy from Underperform, highlighting that the core business of the firm was going strong.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Woodson Capital Management is a leading shareholder in Funko, Inc. (NASDAQ: FNKO) with 3 million shares worth more than $59 million.
3. Mattel, Inc. (NASDAQ: MAT)
Number of Hedge Fund Holders: 25
Mattel, Inc. (NASDAQ: MAT) is a California-based firm that makes and sells toys and other consumer products. It is ranked third on our list of 10 best NFT stocks to buy now. It was founded in 1945 and has a market cap of over $7.6 billion. On June 17, news publication The New York Times reported that the firm would soon launch a small offering on NFTs. The offering would consist of an auction of three pieces of digital art using blockchain-based NFTs. The firm recently beat market expectations on earnings per share and revenue.
On July 28, investment advisory JPMorgan maintained an Overweight rating on Mattel, Inc. (NASDAQ: MAT) stock and raised the price target to $28 from $27, underlining the strong earnings beat of the firm in the second quarter.
At the end of the first quarter of 2021, 25 hedge funds in the database of Insider Monkey held stakes worth $872 million in Mattel, Inc. (NASDAQ: MAT), the same as in the preceding quarter worth $858 million.
Longleaf Partners Fund, in its Q1 2021 investor letter, mentioned Mattel, Inc. (NASDAQ: MAT). Here is what the fund has to say in its letter:
“Mattel (14%, 0.87%), the global toy company, also contributed to the Fund’s positive returns. Fourth quarter sales grew 10%, with Barbie once again leading with an impressive 18% growth, American Girl up 9% due to direct-to-consumer strength, Hot Wheels up 12% and Infant/Toddler growing 7%. Margins also improved to increase EBITDA 53% year-over-year (YoY) during the company’s all-important seasonal peak. CEO Ynon Kreiz’s outlook for 2021-23 includes achievable targets of mid-single-digit revenue growth and continuously improving margins. Mattel’s strategically important IP monetization has also developed well with no fewer than 25 media projects in the works. We expect significant contributions from these high-margin IP revenues over the next several years and do not think the market yet gives the company credit for the scale of this opportunity.”
2. Cloudflare, Inc. (NYSE: NET)
Number of Hedge Fund Holders: 45
Cloudflare, Inc. (NYSE: NET) is placed second on our list of 10 best NFT stocks to buy now. The firm operates a cloud platform that offers enterprise solutions. The company is headquartered in California. It has a market cap of over $37 billion and posted more than $430 million in revenue last year. In late April this year, the company announced that Cloudflare Stream, a platform for video sharing, now supported NFTs. In earnings results for the second quarter, the firm beat market estimates on earnings per share and revenue.
On August 6, investment advisory RBC Capital reiterated an Outperform rating on Cloudflare, Inc. (NYSE: NET) stock and raised the price target to $130 from $100, noting the strong second quarter results of the firm driven by enterprise demand.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Alkeon Capital Management is a leading shareholder in Cloudflare, Inc. (NYSE: NET) with 1.6 million shares worth more than $17 million.
In its Q4 2020 investor letter, Alger Mid Cap Focus Fund, an asset management firm, highlighted a few stocks and Cloudflare, Inc. (NYSE: NET) was one of them. Here is what the fund said:
“Cloudflare. Inc. provides a broad range of network services to businesses of all sizes across the world. Cloudflare’s intelligent global network spans more than 200 cities in over 100 countries. It offers network security, performance and reliability to a growing portion of global web traffic. Today. over 15% of global internet requests go through Cloudflare. Cloudflare’s serverless network design allows this global network to be a key component layer as new developments for edge cornputing. 5G and Internet of Things increase the importance of secure. reliable edge networks. Cloudflare stock outperformed in the fourth quarter following the announcement of Cloudflare One, a cloud-bas. network-as-a-service platform designed to replace the traditional enterprise network infrastructure. The Cloudflare One solution merges existing Cloudflare access and security solutions along with new enterprise-specific features into a unified Zero Trust network that can be managed through a single “pane of glass.” or display screen. With the rapid shift to remote work caused by the pandemic, this product increases Cloudflare’s potential for winning business from enterprise customers seeking to adapt to this new business environment.
While Cloudflare One adoption is still early. Cloudflare has already started to demonstrate an improved ability to sell to large customers. When discussing its third quarter results. Cloudflare said that it is continuing to sign up larger enterprise customers. including its first client to generate more than $10 million in annual recurring revenue. Cloudflare has just started to better monetize its more than 100.000 paying customer base. which along with continued product innovation, gives the company strong growth potential.”
1. Twitter, Inc. (NYSE: TWTR)
Number of Hedge Fund Holders: 107
Twitter, Inc. (NYSE: TWTR) is ranked first on our list of 10 best NFT stocks to buy now. The company owns and operates a microblogging platform. It has a market cap of over $50 billion and posted more than $3.7 billion in revenue last year. In March this year, Jack Dorsey, the owner of the firm, sold his first tweet as an NFT for over $2.9 million. In late June, technology news platform TechCrunch reported that the company was now making NFTs. The company was founded in 2006.
On July 30, investment advisory BMO Capital maintained a Market Perform rating on Twitter, Inc. (NYSE: TWTR) stock and raised the price target to $70 from $65, noting that although the rating was neutral, there were possible growth catalysts ahead.
At the end of the first quarter of 2021, 107 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in Twitter, Inc. (NYSE: TWTR), up from 78 in the preceding quarter worth $2.7 billion.
RGA Investment Advisors, in its Q1 2021 investor letter, mentioned Twitter, Inc. (NYSE: TWTR). Here is what the fund has to say in its letter:
“‘The bird has wings’—Twitter’s quarter started off somewhat ominously, with Twitter the worst performing stock in the S&P 500 following the January 6th insurrection and questions about the stickiness of the userbase after permanently suspending the account of President Trump.8 By the end of the quarter, Twitter was one of the best performers in the index after exceptionally strong fourth quarter earnings and guidance for the year and an upbeat analyst day that highlighted a rapidly evolving product roadmap placing the timeline at the center of ephemeral (fleets), long form (Revue) and voice (Spaces). The improvements to the experience makes the platform more accessible and provides more opportunity to continue growing the userbase. Importantly, Twitter also embraced what we have been calling “creative empowerment” in previewing SuperFollows and a host of features designed to help content creators and contributors monetize their own audience on Twitter itself. These developments, alongside considerable progress on the advertising platform give us growing conviction that Twitter will deliver on its largely untapped opportunity—in other words, the value creation opportunity on top of the low multiple we were able to build our position at. Elliot spoke at length about these developments on Yet Another Value Podcast with Andrew Walker and The Business Brew with Bill Brewster, which we invite you to check out.”
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Disclosure. None. 10 Best NFT Stocks to Buy Now is originally published on Insider Monkey.
