In this article, we discuss the 5 best NFT stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best NFT Stocks to Buy Now.
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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