With Web3 on the rise, more and more Metaverse enthusiasts are looking for Web3 stocks to invest in. Web3 refers to the third generation of web technologies that allows users to produce, read, write and own content using the Blockchain.
The concept of Web3 is still evolving, with numerous companies working on creating decentralized applications using Blockchain-based technologies. Cryptocurrency plays a significant role in enabling decentralization, which is what Web3 is all about.
Web3 offers two investment options to Metaverse enthusiasts, i.e., digital assets and equities. Individuals can either choose to invest passively, i.e., in an index portfolio or actively invest, i.e., picking assets and equities.
Web3 stocks offer investors the opportunity to be part of an ongoing digital revolution. With popular stocks such as Coinbase (COIN), NVIDIA (NVDA), and more, there are plenty of options for Metaverse enthusiasts to explore.
If you’re looking to invest in a portfolio, you can look into reliable Metaverse ETFs that offer low fees and good portfolios. Otherwise, you can sign up for a reliable brokerage to start browsing stock options and buying them as well. These brokerages charge a small fee to facilitate these Web3 stock acquisitions.
What is a Web3 Stock?
Web3/Web 3.0 Stocks are shares in publicly traded companies currently working within the Web3 space. This includes cryptocurrency companies and other tech-based companies such as NVIDIA (NVD), Unity Software (U), and more.
Web3 Stocks provide returns in two possible ways, i.e., an appreciation in stock price or a dividend. Not all stocks pay dividends, so it is essential to diversify your investment portfolio to reduce risk.
These Web3 companies sell their stocks to raise money for the business. The money is then utilized for various projects throughout the company, such as developing new product lines, expanding, etc.
These stocks are first issued through an IPO (Initial Public Offering) and listed on the stock market. You’ll likely be purchasing stock from an investor, not the company itself. Most transactions happen through stock exchanges where a broker handles each deal.
Web3 stocks also represent a percentage of ownership within the company. If you’re a first-time investor, it is essential to remember that there are two types of stocks, i.e., preferred and common. By purchasing common stock, you can participate in votes and get paid dividends by the corporation.
However, while preferred stockholders mostly do not have voting powers, they have a higher claim on earnings and assets. Preferred stockholders are entitled to receive dividends before common stockholders and are also prioritized in case a company is liquidated or if it goes bankrupt.
Both stock types can be purchased from reliable brokerages such as Fidelity Investments and Interactive Brokers. Simply make an account on the website, and you can begin buying stocks right away!
Top 10 Web3 Stocks
It is essential to conduct your research before you begin investing. This article does not offer financial advice; we’re just listing some high-potential Web3 stocks that investors should consider before making an informed decision. Here are the best web3 stocks:
NVIDIA is one of the most prominent tech giants within the semiconductor design space. With the rise of Web3, NVIDIA has also stepped into the exciting world of creating software for this new era of decentralization.
NVIDIA has had much success over the previous years in terms of its gaming chips. Many ‘miners’ utilize NVIDIA chips to complete essential Blockchain-related tasks. To step into Web3, NVIDIA has created the ‘Omniverse.’
The Omniverse enables Web3 developers to build and collaborate on large-scale systems that can be utilized within the Metaverse. Developers can create and view simulations in real-time and use predesigned templates to increase efficiency.
There is also an option to create a ‘digital twin,’ which is currently being tested in various industries by large companies such as Siemens, Lockheed Martin, BMW, and much more. The companies have created virtual environments that mirror images of real-life objects by utilizing the Omniverse. AI allows these companies to perform research and other operations much faster!
The NVIDIA team is also working on creating deep learning systems that utilize neural networks to detect objects, translate languages, recognize voices, and more.
NVIDIA’s Q3 2021 results showed a 50% increase in revenue to around $7.1 billion. This Web3 stock currently costs approximately $177.00 with 2.5B shares outstanding.
Cloudflare is a massive player in the cloud and cybersecurity space, with an average market cap of $31B and $656 Million in revenue last year. This company offers Web3 platforms and various security-based solutions.
The company’s vision is to help create faster, more secure websites online. With over 3.5 million users worldwide, Cloudflare safeguards websites from DDOS attacks, hacking attempts, and much more.
With their widespread Content Delivery Network (CDN), Cloudflare can help websites connect in at least 100 milliseconds.
This can be very useful for Web3 platforms that require a lot of cloud-based storage and security. The current stock price of this organization is $68.53. This company has the potential to expand alongside the apps and platforms within the Web3 space.
3.Advanced Micro Devices (AMD)
Widely known for its graphics and central processing units, Advanced Micro Devices (AMD) is looking to tap into the exciting world of Artificial Intelligence (AI). With their prior experience in designing semiconductors, their team is now working on developing state-of-the-art graphics chips for Web3 applications.
AMD acquired Xilinx (XLNX) in 2020, thus adding significant AI capabilities to their team. With this strategic acquisition, AMD is poised to cement a foothold in the Web3 space, making this a very lucrative Web3 stock option for investors.
Its revenue increased over 49% to $4.8 billion in 2021, thus making it one of the most premium Web3 stocks on the market. Their current stock price is around $95.40, with 1.62B shares outstanding.
4.Block Inc (SQ)
Formerly known as Square, Block is a FINTECH company that provides robust solutions for cryptocurrency transactions, Point of Sale (POS) systems, P2P payments, and more. One of its significant successes is Cash App, which has over 44 million monthly users. Cash App also allows users to buy and sell bitcoin by transferring it to a digital wallet.
CEO Jack Dorsey has also announced recent plans to create a ‘Web5’ project that utilizes verifiable credentials, decentralized identifiers, web nodes, and apps to provide complete data control to individuals.
The FINTECH giant recorded net revenue of around $3.84 billion in Q3 2021. The current Web3 stock price is $74.36 with a market cap of 43.98B USD.
Coinbase Global is a world-renowned cryptocurrency exchange that has over 103 million users. They have also released an NFT-based platform that allows users to buy and sell digital assets. This trusted centralized exchange would enable investors to perform digital transactions and, with the recent mass adoption of crypto, has increased revenue by 330% to $1.23 billion (according to the Q3 2021 report).
Using Coinbase’s decentralized (dapp) browser and wallets, users can access Web3 applications and much more!
This Web3 stock is sought after by many investors due to the company’s pivotal role in facilitating digital transactions on the internet.
Coinbase digital application supports the famous Blockchain network Solana (SOL) and other tokens. This allows users to store Solana alongside other tokens such as Polygon, Avalanche, Ethereum, and more. This reduces the need for users to have different wallets and facilitates transactions within the Web3 space. The current stock price is around $74.06
6.Unity Software (U)
Unity Software offers a holistic solution to create 3D experiences, digital assets, and more. This company is behind numerous video games such as Fall Guys, Beat Saber, and many more. The company provides solutions for augmented reality devices, PCs, mobile phones, etc.
According to their Q4 results in 2021, Unity Software has increased revenue by 43% to $316 million. The total net loss for stockholders was around 5 cents/share, approximately $12 million. This Web3 stock also offers growth potential.
The stock price for Unity Software is currently around $47.67, with a market cap of 14.231B. Unity Software will play a significant role in helping developers create different experiences for users online. This one should be on your radar if you’re looking for a reliable Web3 stock that offers considerable potential.
This tech giant provides cloud services to popular platforms such as Pinterest, Spotify, TikTok, Reddit, and more! Using the tools Fastly provides, Web3 developers, get all the resources they need to build apps, experiences, and much more for users.
The most significant benefit of using Fastly’s services is that all creations are scalable, secure, and fully optimized for speed. The company also provides other services such as SAAS, Image Optimization, Content Delivery Networks (CDN), and more!
The price of Fastly Web3 stocks is $10.42, with a market cap of $1.26B. With new Web3 platforms being created daily, the demand for Fastly’s cloud solutions is also rapidly increasing.
This multinational tech giant specializes in software, consumer electronics, and much more. The company has numerous products that have been successful worldwide. In 2021, Apple generated over $365 billion in revenue.
The company has been working on Augmented Reality (AR) to blur the lines between the real and virtual worlds. The company is working on utilizing Blockchain to improve security within its iPhone hardware.
With the company’s knack for consistent innovation, we’re confident we will see them make significant strides in the Web3 space with new products and services soon.
The current price of AAPL Web3 stocks is $171.52. With smartphones playing a major role in facilitating crypto transactions, this stock is a good choice for investors looking to enter the Web3 space.
9.International Business Machines Corp (IBM)
This multinational tech giant is one of the pioneers of the Blockchain industry. International Business Machine corporation has assisted in deploying multiple Web3-based products with smart contracts.
One of their products is the IBM Blockchain Platform, which is utilized by the Everest Group, IDC, and more! The company has several AI initiatives perfectly poised to benefit the Web3 space, making this a really attractive Web3 stock for investors.
IBM utilizes machine learning to create immersive experiences for users in the Metaverse. The company is also trying to solve real-life problems such as supply-demand transparency using Blockchain and much more!
It is one of the best Web3 stocks for investors looking for low-risk investments. The stock is currently priced at $138.37 with a $124.97B.
Twitter is one of the most powerful social media platforms worldwide. Recently, Twitter has been growing its presence within the Web3 space. There are over 227 million active users on the platform.
The platform has generated over $5.229B in revenue in 2021, with an overall 17.45% increase in yearly earnings. The company also introduced a state-of-the-art ‘tipping‘ functionality where users can tip their favorite content creators in Bitcoin.
The current price of Twitter Web3 stocks is $43.99, with a market cap of $33.66B. Twitter Blue subscribers can display their NFTs (verified ownership) on their profiles. This made many NFT fans happy as they could showcase their collections on their Twitter social media profile!
The Benefits of Investing in Web3 Stocks
The benefits of investing in Web3 Stocks include:
- Massive Growth Potential: The Web3 space is rapidly evolving and has the potential to grow with recent developments in the Metaverse. With more companies looking to be a part of the Web3 revolution, investors have a variety of Web3 stocks to choose from.
- Secure Investments: Investing in Web3 stocks is more secure than investing in cryptocurrencies. Crypto can be volatile, and investing in digital assets such as NFTs is risky. Stocks are the perfect long-term investment strategy.
- Dividend Benefits: A dividend is a massive benefit for a stockholder if provided by the company. While not all companies pay dividends yearly, some companies, such as Samsung, are known for paying dividends from time to time.
- Liquidity: Web3 stocks can easily be sold and converted into cash through brokers, thus making this a very safe liquid investment. Many investors like these stocks because it allows greater control over their investment. For Web3 stocks, the demand for stocks is already very high, thus making these stocks very easy to sell.
- Investment Flexibility: Investors do not have to worry about investing large amounts of money at one time. Depending upon share availability, they can buy as little as one share or up to as many shares they want.
- Diversification: Investors have numerous Web3 stocks to choose from, thus reducing their risk by diversifying their investments. It is always recommended to conduct thorough research before investing in any stock so that individuals can make informed purchase decisions.
Each investor has a risk-reward threshold they feel comfortable investing in; we recommend diversifying your investments to have the perfect risk-reward ratio. Since the space is relatively new, investors have an opportunity to learn much more about the different earning options Web3 provides.
The Disadvantages of Investing in Web3 Stocks
Some of the disadvantages of investing in Web3 Stocks include:
- Long Term Gains: Investors can expect to see losses in the next few years because companies are dedicating resources to creating solutions for Web3. Investing in Web3 stocks that are not solely dependent upon the Web3 space is recommended. Apple generates most of its revenue from hardware sales, making it a less risky investment.
- Many Unknowns: Since there are a lot of unknowns in the Web3 space, several risks are associated with investing in Web3 stocks. These stocks can be very volatile and only benefit long-term investments.
- Technologies May Become Obsolete: What seems relevant today may not be required in the future. The Web3 space is rapidly evolving, and many companies are forced to adapt quickly to be a part of this ongoing digital revolution.
It is important to remember that investing in Web3 Stocks is a long-term commitment. The companies mentioned in these articles have succeeded in their current projects and have obtained a large customer base. They have gained a lot of traction and have shown promise in the past.
However, customer base and initial traction are not the only variables in play regarding Web3 stocks. The prices can be changed based on several factors, so it is recommended to diversify your portfolio and do your due diligence before investing.
This post from Metaverse Insider aims to give information and provide access to information to investors to help them make their own decisions and is not meant to be interpreted as investment advice.