5 Best Blockchain Stocks To Buy Now

In this article, we will discuss the 5 best blockchain stocks to buy now. If you want to see our analysis of the blockchain industry and explore similar stocks, you can read 13 Best Blockchain Stocks To Buy Now.

5. Block, Inc. (NYSE:SQ)

Number of Hedge Fund Holders: 75

Block, Inc (NYSE:SQ) is one of the leading companies in the blockchain industry. It is a payment processing company that provides mobile payment processing services to customers across the globe. The company has been actively involved in blockchain technology since its inception and has garnered a significant amount of market share over its 13 year history. Block, Inc (NYSE:SQ) has integrated its services with numerous blockchain platforms and is one of the few companies that have adopted Bitcoin as a payment method. The company’s Cash App is built on the Bitcoin blockchain network and allows users to purchase and sell Bitcoin. Block, Inc. (NYSE:SQ) is one of the best blockchain stocks to buy now.

On November 16, Mizuho analyst Dan Dolev raised his price target on Block, Inc. (NYSE:SQ) to $69 from $57 and maintained a Neutral rating on the shares. This December, Deutsche Bank analyst Bryan Keane maintained a Buy rating on Block, Inc. (NYSE:SQ).

At the end of Q3 2022, 75 hedge funds were bullish on Block, Inc. (NYSE:SQ) and disclosed positions of $3.41 billion in the company. Of those, ARK Investment Management is the dominant shareholder in the company and has stakes worth $505.4 million.

Here is what Baron Funds has to say about Block, Inc. (NYSE:SQ) in its second-quarter 2022 investor letter:

“Block, Inc. 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.”

4. Paypal Holdings, Inc. (NASDAQ:PYPL)

Number of Hedge Fund Holders: 126

Payments giant PayPal Holdings, Inc. (NASDAQ:PYPL) is playing an increasingly important role in the blockchain industry. The company has been investing heavily in blockchain technology to expand its existing capabilities and provide customers with an even better experience. The company allowed support for cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, back in October 2020. Paypal Holdings, Inc. (NASDAQ:PYPL) is well-positioned to capitalize on the growth of the global blockchain industry and adoption of cryptocurrencies and is ranked among the best blockchain stocks to buy now.

This November, DA Davidson analyst Christopher Brendler updated his price target on PayPal Holdings, Inc. (NASDAQ:PYPL) to $110 from $120 and maintained a Buy rating on the shares. On December 7, PayPal Holdings, Inc. (NASDAQ:PYPL) announced that the company is expanding its cryptocurrency offerings to Luxembourg.

At the close of Q3 2022, 126 hedge funds were long Paypal Holdings, Inc. (NASDAQ:PYPL). The total stakes of these hedge funds amounted to $6.79 billion, up from $5.20 billion in the previous quarter with 97 positions. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the largest shareholder in the company and has a position worth $1.52 billion.

Here is what RiverPark Funds had to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its third-quarter 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 ecommerce-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.”

3. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 146

Mastercard Incorporated (NYSE:MA) is one of the leading companies in the blockchain industry. The company has been actively involved in the development of blockchain technology since October 2017, when it launched its native blockchain platform. The platform is a scalable, secure, and cost-efficient blockchain network that enables businesses to securely store and manage digital assets. On November 3, the company announced that it has added 7 blockchain startups to the Mastercard Start Path program, the company’s fintech accelerator program. Mastercard Incorporated (NYSE:MA) is actively exploring the potential of blockchain technology and is taking steps to ensure that it is well positioned to take advantage of this emerging technology. The stock ranks high among the best blockchain stocks to buy now.

On November 1, Mizuho analyst Dan Dolev updated his price target on Mastercard Incorporated (NYSE:MA) to $380 from $385 and maintained a Buy rating on the shares.

At the end of the third quarter of 2022, Mastercard Incorporated (NYSE:MA) was a part of 146 investors’ portfolios that held collective positions worth $13.88 billion in the company. Of those, Akre Capital Management is the top shareholder in the company and has stakes worth $1.67 billion.

Here is what Baron Funds had to say about Mastercard Incorporated (NYSE:MA) in its third-quarter 2022 investor letter:

“Shares of global payment network Mastercard Incorporated (NYSE:MA) fell despite reporting financial results that exceeded Street estimates. Revenue grew 21% and EPS grew 32% in the most recent reported quarter, and strong payment activity has persisted despite high inflation. Share price weakness represented a reversal of outperformance earlier this year and was likely driven by adverse foreign exchange movements and concerns about a potential weakening of consumer spending. We retain conviction due to Mastercard’s long runway for growth and significant competitive advantages.”

2. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 165

Visa Inc. (NYSE:V) is another payments giant that has been actively involved in the development and implementation of blockchain-based solutions for its customers. The company has partnered with several blockchain-focused companies in order to develop new technologies and applications and has also launched its own private blockchain network, Visa B2B Connect. This platform is designed to facilitate cross border payments for businesses.Visa Inc. (NYSE:V) is a major player in the blockchain industry and is actively exploring how it can leverage the technology to improve its services and products. The stock is placed on our list of the best blockchain stocks to buy now.

On December 2, Wells Fargo analyst Donald Fandetti raised his price target on Visa Inc. (NYSE:V) to $250 from $225 and reiterated an Overweight rating on the shares.

At the close of the third quarter of 2022, 165 hedge funds held stakes in Visa Inc. (NYSE:V). The total value of these stakes amounted to $22.4 billion. As of September 30, TCI Fund Management is the top investor in the company and has a position worth $3.54 billion.

Here is what Lakehouse Capital had to say about Visa Inc. (NYSE:V) in its third-quarter 2022 investor letter:

“Visa Inc. (NYSE:V) continued its long run of steady growth with both net revenue and earnings per share increasing by 19% year-over-year. The company processed 61.9 billion transactions during the quarter, which drove US$2.9 trillion in total payments volume. The return of travel-related spend post-pandemic continues to be a tailwind for the business and it was pleasing to see cross-border volume growth maintain its recent momentum, up 49% year-over-year, excluding intra-Europe. Management also provided some positive commentary on the macro environment, which was reassuring, especially given the heightened recessionary fears at present. They highlighted stable trends that were relatively broad-based and emphasised stability in e-commerce and a general shift in spending away from goods toward services and experiences. Big picture, we remain long-term holders and believe that the combination of an attractive industry structure and the ongoing secular shift towards digital payments provides a strong foundation that will enable Visa to continue growing at attractive rates for many years to come.”

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

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) is quickly becoming a leader and gaining traction in the blockchain industry. The company has been investing heavily in blockchain technology, and has already launched its own blockchain service, the Amazon Managed Blockchain. The company’s cloud business, Amazon Web Services (AWS), has been actively engaging in blockchain initiatives, such as the launch of the AWS Blockchain Templates. Amazon.com, Inc. (NASDAQ:AMZN) is one of the best blockchain stocks to buy now.

On December 1, Cowen analyst John Blackledge raised his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $160 from $150 and maintained an Outperform rating on the shares.

At the end of Q3 2022, Amazon.com, Inc. (NASDAQ:AMZN) was spotted on 269 investors’ portfolios that held collective stakes of $34.6 billion in the company. This is compared to 252 positions in the previous quarter with stakes worth $30.07 billion. The hedge fund sentiment for the stock is positive. As of September 30, Fisher Asset Management is the dominant shareholder in the company and has stakes worth $5.6 billion.

Here is what L1 Capital International had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2022 investor letter:

“Quarterly results (mostly reported in late July and early August) were generally in line with our expectations. Solid company execution was subsequently swamped by increases in interest rates and hawkish Federal Reserve commentary. During the quarter, only one company (Amazon.com) made a positive contribution of more than 0.5% in Australian dollars. Amazon.com, Inc.(NASDAQ:AMZN) was the largest negative contributor in the June 2022 quarter, with the share price recovering modestly but it is still well below our view of fair value. No company detracted more than 0.5% from the Fund’s performance in Australian dollars, although the depreciation of the Australian dollar obfuscates some meaningful share price falls in U.S. dollars

We did not participate in the ‘unprofitable tech bubble’, but our portfolio does have significant exposure to some of the largest, highly profitable and incredibly financially strong technology companies which dominate their markets and have outstanding medium to long term growth prospects – including Alphabet, Amazon, Intuit and Microsoft. The share price of these companies has now fallen to levels we now consider provide very attractive valuations for long term investors.”

You can also take a look at 15 Best Electric Car Stocks To Buy and Top 10 Semiconductor Manufacturing Countries in the World.