The 3 Best Blockchain Stocks to Buy for the Future of Finance
After a devastating decline, some of the best blockchain stocks to buy are starting to show significant signs of life again.
Many have become screaming buys, with the industry poised to be a clear economic game-changer for millions. In accordance Markets and markets, the blockchain market could grow by more than 66% to $94 billion by 2027. Far better, by 2030, analysts at Grand View Research say the global blockchain market could be worth around $1.4 trillion. They note: “The growing demand for blockchain across the public sector due to benefits, such as protection of sensitive data, reduced costs and improved efficiency, is driving market growth.”
Investors may want to consider these three blockchain stocks with some of the best potential growth in this sector.
| BKCH | Global X Blockchain ETF | $21.85 |
| SQ | Block Inc. | $77.47 |
| MA | MasterCard | $352.88 |
Global X Blockchain ETF (BKCH)
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One of my favorite ways to trade any hot sector is with an ETF. That’s because these vehicles offer solid diversification at a relatively low cost.
With a cost share of 0.50%, is Global X Blockchain ETF (NASDAQ:BKCH) invests in companies that are likely to benefit from the increased use of blockchain technology. These include those in digital asset mining, blockchain and digital asset transactions, applications, hardware and integration.
Therefore, for those bullish in this area, the BKCH ETF is among the best ways to play this broader trend. Investing in this bucket of stocks provides broad exposure, with fewer headaches.
Block Inc. (SQ)
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For those looking to buy individual blockchain stocks for the future of finance, there always is Block (SNEEZE:SQ).
Admittedly, the stock has seen better days. In fact, from that amazing peak of around $280, the stock fell to less than $60 before recovering to $77 a share, at the time of writing. Fortunately, SQ stock is showing signs of life and I believe this stock may eventually return to the $100 level.
There are many reasons for this view. However, among the key factors I consider is what analysts think about this stock. Mizuho just upgraded the stock to a buy rating, pricing in significant upside with SQ shares tied to cost savings and associated margin growth. These analysts raised their price target to $93 from $80. Consequently, it is clear that this is a company that Wall Street remains positive on, despite the macro backdrop.
Some of this bullishness may be a result of Block’s recent earnings, which have been impressive. The company had revenue of $4.65 billion last year, beating analysts’ expectations by $60 million. Revenues also increased by 14 per cent from the previous year. And if we exclude Bitcoin (BTC-USD) revenue, the company’s total revenue will be $2.82 billion, or an increase of 33% year over year. Not bad.
Mastercard (MA)
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It is also MasterCard (SNEEZE:MA). As the company slams on the brakes to form new relationships with cryptocurrency firms, it’s not all doom and gloom for this mega-cap payments company. Reuters reported that the company is still focusing its efforts on the underlying blockchain technology, looking for ways to use that technology to address existing pain points and build more efficient systems.
In fact, when it comes to payment companies, Mastercard has really taken a stab at generating growth in this sector. The company has invested heavily in assessing potential use cases of blockchain technology. With almost 90 blockchain patents, Mastercard wants to use the technology to make the payment process far more secure, seamless and harder for fraudsters to access.
Even better, Mastercard just delivered better-than-expected earnings. In the fourth quarter, the company posted EPS of $2.65, ahead of estimates of $2.57. Net income was up to $5.8 billion. “While macroeconomic and geopolitical uncertainty persist, consumer spending has been remarkably robust,” Mastercard CEO Michael Miebach said, as quoted by Barron’s. “We are well prepared to adjust our investment profile quickly if necessary.”
At the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
