In this article, we discuss 10 NFT stocks to buy according to Reddit. If you want to skip our detailed analysis of NFTs and these stocks, go directly to 5 NFT Stocks to Buy According to Reddit.
Non-fungible tokens, or NFTs, are digital assets stored on a blockchain ledger, and can take the form of art, photos, videos, and audio. Retail investors and hedge funds alike invested heavily in NFTs in 2021, with sales reaching $25 billion as the trend exploded in popularity.
Although NFTs have been launched since 2014, investors took an active interest in NFT trading in 2021. Celebrities and high profile individuals entered the crypto mania in 2021 as well, with the former CEO of Twitter, Inc. (NYSE:TWTR), Jack Dorsey, selling a tweet as an NFT for $2.9 million in March 2021. Similarly, the American rapper Eminem on January 4, 2022, purchased an NFT from the “Bored Ape” avatar collection for $450,000, since the art resembled Eminem’s features. He now has the NFT up as his Twitter display picture, and this significantly boosted demand for the Bored Ape NFT avatars, which retail for approximately $280,000.
The growing interest in the metaverse has also helped with the blockchain, crypto, and NFT hype. Key market players are also diving into the NFT craze. For example, luxury fashion brands including Gucci, D&G, and Burberry Group plc (OTC:BURBY) dropped a collection of virtual wearables, Visa Inc. (NYSE:V) acquired a 24×24 pixel image from the CryptoPunks NFT collection, and NIKE, Inc. (NYSE:NKE) purchased a virtual sneaker and collectibles company.
The most notable NFT stocks include PLBY Group, Inc. (NASDAQ:PLBY), eBay Inc. (NASDAQ:EBAY), and Funko, Inc. (NASDAQ:FNKO).
Photo by Adam Nowakowski on Unsplash
Our Methodology
We searched Reddit threads extensively to understand the sentiments of Redditors regarding the best NFT stocks, and selected the 10 names that were most frequently mentioned. To elaborate on each company, we have mentioned analyst ratings, fundamentals, and the hedge fund sentiment around the stocks.
We have ranked the list according to the popularity of each company among the 867 hedge funds that were tracked by Insider Monkey in the third quarter of 2021.
NFT Stocks to Buy According to Reddit
10. WISeKey International Holding AG (NASDAQ:WKEY)
Number of Hedge Fund Holders: 1
WISeKey International Holding AG (NASDAQ:WKEY) is a notable global cybersecurity company that offers digital security to individuals utilizing blockchain, artificial intelligence, and the internet of things. The company has billions of microchips that collect big data, enabling WISeKey International Holding AG (NASDAQ:WKEY) to predict the failure of industrial equipment before it happens.
The company announced on November 23 that it has signed a cooperation agreement with Luminaries21.com and OISTE.ORG Foundation, to develop non-fungible tokens, exclusively designed for world leaders, celebrities, and influencers. The NFTs will be associated with multiple social causes in order to develop and sponsor implementable solutions targeting the United Nations global sustainable goals, as well as assisting other humanitarian agencies.
WISeKey International Holding AG (NASDAQ:WKEY) reported on January 13 that it is creating an NFT ecosystem with a direct connection to satellites, which will gauge the authenticity of the NFTs from space to device through secure telecommunication means. The WISeKey International Holding AG (NASDAQ:WKEY) stock rose 8% as a result of this announcement.
Matthew Galinko, an analyst from the investment advisory Maxim, initiated coverage of WISeKey International Holding AG (NASDAQ:WKEY) on December 10 with a Buy rating and a $11 price target.
In the third quarter of 2021, 1 hedge fund reported owning a $122,000 stake in WISeKey International Holding AG (NASDAQ:WKEY).
9. Dolphin Entertainment, Inc. (NASDAQ:DLPN)
Number of Hedge Fund Holders: 2
Dolphin Entertainment, Inc. (NASDAQ:DLPN) owns multiple media marketing companies that help the corporation develop movies, television, digital programming, live events, and related intellectual property.
Dolphin Entertainment and West Realm Shire Services Inc, the company that owns FTX.US, announced on August 2 that they are combining forces to create an NFT marketplace for leading sports and entertainment brands. The collaboration will utilize Dolphin Entertainment, Inc. (NASDAQ:DLPN)’s creative and marketing side and pair it with FTX’s knowledge of cryptocurrencies.
Dolphin Entertainment, Inc. (NASDAQ:DLPN) on November 22, 2021, launched its first NFT collection, called the Creature Chronicles: Exiled Aliens, which features 10,000 custom avatars representing an ancient race of unique creatures. Dolphin Entertainment, Inc. (NASDAQ:DLPN) plans to launch more NFTs in this series so that the fan experience can grow and evolve. Redditors are rapidly increasing their positions in Dolphin Entertainment, Inc. (NASDAQ:DLPN).
On November 19, Dolphin Entertainment, Inc. (NASDAQ:DLPN) reported its third quarter results, posting GAAP earnings per share of $0.02, beating estimates by $0.01. Revenue over the period jumped 47.08% year-over-year to $9.40 million, outperforming estimates by $562,480.
According to Insider Monkey’s Q3 data, 2 hedge funds were bullish on Dolphin Entertainment, Inc. (NASDAQ:DLPN), holding stakes equaling $4.73 million.
8. Oriental Culture Holding LTD (NASDAQ:OCG)
Number of Hedge Fund Holders: 3
Oriental Culture Holding LTD (NASDAQ:OCG) is a Chinese company providing online collectibles and artwork e-commerce services, offering multiple types of listed NFT products including paintings, stamps, coins, postage seals, and collectible cards. Oriental Culture Holding LTD (NASDAQ:OCG) has a dedicated trading platform and it is one of the notable Chinese players in the non-fungible tokens market.
On November 3, Oriental Culture Holding LTD (NASDAQ:OCG) posted its 1H 2021 results. The company announced a GAAP EPS of $0.49, and revenue for the period totaled $24.5 million, up 880% year-over-year.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 3 funds reported owning stakes in Oriental Culture Holding LTD (NASDAQ:OCG), worth $486 million, up from 1 hedge fund holding a $217 million position in Oriental Culture Holding LTD (NASDAQ:OCG) in the preceding quarter.
Paul Marshall and Ian Wace’s Marshall Wace LLP is the leading stakeholder of Oriental Culture Holding LTD (NASDAQ:OCG), buying 79,474 shares of the company in the third quarter, valued at $313,000.
In addition to PLBY Group, Inc. (NASDAQ:PLBY), eBay Inc. (NASDAQ:EBAY), and Funko, Inc. (NASDAQ:FNKO), Oriental Culture Holding LTD (NASDAQ:OCG) is growing in popularity as a notable NFT stock.
7. Cinedigm Corp. (NASDAQ:CIDM)
Number of Hedge Fund Holders: 9
Cinedigm Corp. (NASDAQ:CIDM) is an American entertainment company dealing in motion pictures, entertainment, video on demand, digital distribution, content marketing, and film distribution.
Cinedigm Corp. (NASDAQ:CIDM), on March 25, announced that it will be developing non-fungible token products, and the shares gained 28% in premarket trading the same day due to speculations about Cinedigm Corp. (NASDAQ:CIDM) entering the NFT market. The company CEO declared that NFT initiatives are meant to support their key mission of providing superior streaming and context experience for users.
On October 26, Cinedigm Corp. (NASDAQ:CIDM) released horror-based NFT trading cards branded as the Bloody Disgusting Blood Pack, offered only as a unique 1 of 1 edition. The company has partnered with Rad.live to utilize Ara, their comprehensive NFTs platform and marketplace, as the key back-end solution for this launch.
Alliance Global Partners analyst Brian Kinstlinger on August 2 raised the price target on Cinedigm Corp. (NASDAQ:CIDM) to $3.25 from $3.00 and reiterated a Buy rating on the shares, observing that the company is set to experience accelerated growth given its “many catalysts” that include stronger inventory fill rates, more channels with better quality, increased viewership, and subscriber counts.
Among the hedge funds tracked by Insider Monkey, 9 funds were bullish on Cinedigm Corp. (NASDAQ:CIDM) in the third quarter, with stakes amounting to $29.5 million, as compared to 2 funds in the prior quarter holding stakes worth $5.9 million in Cinedigm Corp. (NASDAQ:CIDM).
Billionaire Israel Englander’s Millennium Management, the largest Cinedigm Corp. (NASDAQ:CIDM) stakeholder, elevated its position in the company by 42% in the third quarter, with approximately 6 million shares worth $15 million.
6. Marathon Digital Holdings, Inc. (NASDAQ:MARA)
Number of Hedge Fund Holders: 12
Marathon Digital Holdings, Inc. (NASDAQ:MARA) is a North American company that manages one of the largest bitcoin mining operations. Marathon Digital Holdings, Inc. (NASDAQ:MARA) specializes in the decentralized finance (DeFi) ecosystem, enabling users to purchase NFTs and similar digital assets.
On December 28, Marathon Digital Holdings, Inc. (NASDAQ:MARA) disclosed that it had purchased 78,000 miners from Bitmain, priced at $879.06 million, which will be delivered gradually over the months till December 2022. The stock climbed 10% after this announcement.
Riley analyst Lucas Pipes lowered the price target on Marathon Digital Holdings, Inc. (NASDAQ:MARA) to $74 from $92 but kept a Buy rating on the shares. The analyst cites higher than expected capital cost of the digital mining industry for the reduced price target. While the digital mining space has grown “dramatically and overwhelmingly successfully”, scaling has also brought unique challenges, which has been impacting sentiment and multiples in the space.
The price target still presents a huge upside when compared to the stock’s current price.
A total of 12 hedge funds in the third quarter database of Insider Monkey were long Marathon Digital Holdings, Inc. (NASDAQ:MARA), with stakes amounting to $46.7 million, as compared to 19 funds holding stakes worth $108.8 million in Marathon Digital Holdings, Inc. (NASDAQ:MARA) in the preceding quarter.
Just like PLBY Group, Inc. (NASDAQ:PLBY), eBay Inc. (NASDAQ:EBAY), and Funko, Inc. (NASDAQ:FNKO), Marathon Digital Holdings, Inc. (NASDAQ:MARA) is one of top NFT picks of Redditors.
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Disclosure: None. 10 NFT Stocks to Buy According to Reddit is originally published on Insider Monkey.
