5 Best Blockchain Stocks To Buy Now

In this article, we discuss 5 best blockchain stocks to buy now. If you want to see more stocks in this selection, check out 12 Best Blockchain Stocks To Buy Now. 

5. International Business Machines Corporation (NYSE:IBM)

Number of Hedge Fund Holders: 40

International Business Machines Corporation (NYSE:IBM) provides integrated technology solutions and services worldwide. IBM Blockchain allows reliable data exchange and workflow automation with distributed ledger technology. On October 25, the company declared a quarterly dividend of $1.65 per share, in line with previous. The dividend is payable on December 10, to shareholders of record on November 10. IBM’s dividend yield on December 2 came in at 4.46%. 

On October 17, Stifel analyst David Grossman reiterated a Buy recommendation on International Business Machines Corporation (NYSE:IBM) but trimmed the price target on the shares to $140 from $150. International Business Machines Corporation (NYSE:IBM) is defensive and likely impacted less than most large-cap tech, but not immune to the weak GDP growth, the analyst told investors. 

According to Insider Monkey’s data, 40 hedge funds were bullish on International Business Machines Corporation (NYSE:IBM) at the end of September 2022, and Arrowstreet Capital held the leading stake in the company, consisting of 4.3 million shares worth $515.7 million. 

In its Q1 2022 investor letter, St. James Investment Company, an asset management firm, highlighted a few stocks and International Business Machines Corporation (NYSE:IBM) was one of them. Here is what the fund said:

“IBM was not the first company to build computers. The distinction belongs to Sperry-Rand’s subsidiary UNIVAC, which introduced the first commercially successful computers in the early 1950s. In this era, IBM did possess the largest research and development department of the business machines industry and quickly caught up, introducing cost-competitive computers a few years after UNIVAC. By the late 1950s, IBM held the dominant market share in computers. IBM also touted a vastly superior sales organization, which used a sales tactic called “paper machines” (the equivalent of today’s “vaporware”). If a competitor’s product was selling well in a market segment that IBM had yet to penetrate, the company would announce a competing product and start taking orders for the “paper machine” long before it was available. (read more)

4. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 75

Block, Inc. (NYSE:SQ), a California-based payments technology firm, was renamed from Square to Block in part to reflect its broader plans around crypto and blockchain. Over the Black Friday and Cyber Monday weekend, Block, Inc. (NYSE:SQ)’s Square and Afterpay sellers recorded more than 61 million transactions as consumers globally headed into the holiday shopping season. 

On November 16, Mizuho analyst Dan Dolev raised the price target on Block, Inc. (NYSE:SQ) to $69 from $57 and reiterated a Neutral rating on the shares. The analyst said payday lending is largely meaningful to Cash App gross profit growth. Payday lending is a short-term boost to inflows, but it may ultimately pressure Block, Inc. (NYSE:SQ)’s multiple as delinquencies across consumer lending continue to increase, the analyst told investors. This is concerning given Cash App’s skew towards lower-income households, added the analyst.

According to Insider Monkey’s third quarter database, 75 hedge funds were long Block, Inc. (NYSE:SQ), compared to 72 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the biggest position holder in the company, with more than 9 million shares worth $505.45 million. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:

“Block, Inc. (NYSE:SQ) provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to mixed quarterly results with more modest growth in the Seller business offsetting strength in Cash App. While integration of recently acquired Afterpay is progressing well and credit metrics remain healthy, the buy-now-pay-later business slowed due to greater competitive intensity. We continue to own the stock due to Block’s long runway for growth, sustainable competitive advantages, and unique corporate culture.”

Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund include Wells Fargo.”

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 89

NVIDIA Corporation (NASDAQ:NVDA) provides graphics, semiconductor, and networking solutions worldwide. GPUs and computer components are essential for crypto mining and blockchains, which makes NVIDIA Corporation (NASDAQ:NVDA) one of the premier blockchain stocks to look out for. 

On November 17, Needham analyst Rajvindra Gill raised the price target on NVIDIA Corporation (NASDAQ:NVDA) to $200 from $155 and reiterated a Buy rating on the shares. The company’s Q3 results were “solid” with data center revenue outlook slightly higher despite soft China data center sales and H100 adoption accelerating, the analyst told investors. The analyst added that while China continues to pressure overall results, NVIDIA Corporation (NASDAQ:NVDA) is executing well in the face of these headwinds.

According to Insider Monkey’s data, 89 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA) at the end of September 2022, compared to 84 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is a notable stakeholder of the company, with more than 12 million shares worth $1.5 billion. 

Vulcan Value Partners made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2022 investor letter:

“We also sold NVIDIA Corporation (NASDAQ:NVDA) during the quarter to allocate capital to new purchases and to add to existing positions in the portfolio. NVIDIA is facing multiple headwinds. Data center revenue growth is slowing, gaming revenue growth is declining, and the United States has issued new export controls to China that impact NVDIA’s products. We believe NVDIA’s competitive advantages are intact, and it remains on our MVP list. In the right circumstances we would be delighted to own it in the future.”

2. PayPal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 126

PayPal Holdings, Inc. (NASDAQ:PYPL), the digital payments giant, is completely embracing cryptocurrency and blockchain technology. Users can buy and sell crypto in their PayPal accounts, and the company has also been exploring launching its own stablecoin, which would be pegged to the U.S. dollar. PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the best blockchain stocks to consider. 

On November 29, Wedbush analyst Moshe Katri said that Outperform rated PayPal Holdings, Inc. (NASDAQ:PYPL) featured as a dominant e-commerce payment method during Black Friday and the holiday season. 

According to Insider Monkey’s Q3 data, 126 hedge funds were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL), up from 97 funds in the prior quarter. Stephen Mandel’s Lone Pine Capital is a significant stakeholder of the company, with 8.3 million shares worth $714 million. 

Here is what RiverPark Large Growth Fund has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2022 investor letter:

“PayPal, announced better-than-expected 2Q results, positive guidance (including more than $1.3 billion of 2023 cost savings leading to operating margin expansion), a $15 billion stock repurchase program, and the appointment of Blake Jorgensen as CFO, who was previously the well-regarded CFO at Electronic Arts. The company reported 9% revenue growth, in-line with guidance, and $0.93 EPS, exceeding guidance due to robust operating leverage. Management narrowed its 2022 revenue guidance from 11%-13% growth to about 11% growth due to the macro environment but raised its EPS guidance due to greater operating margin leverage and share buybacks. The stock also reacted to the news that activist investor Elliott Management had taken a stake in the company. PYPL operates at significantly lower margins than its payment competitors Visa and Mastercard, and sources suggest that Elliott intends, among other things, to push for the company to improve its margins and drive higher cash flow growth in the near term.

PayPal provides direct exposure to the secular growth in e-commerce driven digital payments as it is the most accepted digital wallet on-line. More than 3/4 of the 1,500 largest online retailers across North America and Europe accept PayPal, which is almost triple the acceptance of Apple Pay, the number two digital wallet. PayPal is also a key beneficiary of the current dramatic shift in consumer buying habits brought on by the pandemic, as well as the relatively newer consumer-to-consumer payment trends through its Venmo peer-to-peer (P2P) payment service. With a 2Q non-GAAP operating margin of 19%, PYPL also has significant margin expansion potential given that competitors Adyen, Visa and Mastercard have 50%-65% operating margins. We believe the combination of the secular growth of eCommerce and P2P payments, along with expanding operating leverage and the strategic use of the company’s significant and growing cash balance should fuel a mid-20% earnings growth rate over the next five years. This, to us, presents an excellent risk/reward profile given that PYPL trades at a modest premium to the market multiple and a 6% 2023 FCF yield.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) operates Amazon Managed Blockchain, a completely managed service that makes it convenient to join public networks or manage scalable private networks using the popular open-source frameworks Hyperledger Fabric and Ethereum. Amazon.com, Inc. (NASDAQ:AMZN) is one of the best blockchain stocks to buy now. 

Cowen analyst John Blackledge on December 1 raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) to $160 from $150 and maintained an Outperform rating on the shares. The analyst said he expects lower operating losses excluding AWS and Advertising in 2023 as cost headwinds subside.

Among the hedge funds tracked by Insider Monkey, 269 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of Q3 2022, compared to 252 funds in the earlier quarter. Jaime Sterne’s Skye Global Management is a prominent stakeholder of the company, with 15.5 million shares worth $1.75 billion. 

Baron Funds made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2022 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest e-commerce retailer and cloud services provider. Shares of Amazon increased 6% in the quarter after the company reported strong results with 7% year-over-year revenue growth driven by 33% growth in Amazon Web Services (AWS), Amazon’s leading cloud computing service, while guiding for an acceleration in third quarter revenue growth, which is expected to be between 13% and 17% year-over-year. Amazon’s share of e-commerce is roughly 40%, far ahead of competition, yet domestic e-commerce accounted for only 14.5% of total retail sales (according to U.S. Census Bureau data for the second quarter of 2022), implying durable growth opportunities ahead. Internationally, the opportunity remains large as Amazon still has less than a 2% market share of international retail spending. Its advertising share is also only 3% and growing, underpinned by the structural closed-loop systems it enables (merchants know exactly whether their ad dollars resulted in a purchase since they are all done on the Amazon platform), which enables accurate targeting and measurement. Lastly, AWS has a good runway for growth as the industry still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”

You can also take a look at 10 Best Performing Growth Stocks in November and 15 Best Affordable Stocks To Buy Under $30.