NFT Stocks to Watch: Key Takeaways
- I was wrong about NFTs in March. Check out my course correction below…
- Stock #1 separated itself from the JFINs of the world with this piece of ‘real’ news…
- Stock #5 has the potential to change the whole NFT landscape, and launch a thousand sympathy plays…
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Remember when NFT stocks came on the radar earlier this year? I thought they were a fad. I might have compared them to Beanie Babies. But here they are, months after ‘NFT Stock Mania’ … still sticking around. I’ll go over my top NFT stock watches below. But first…
- Dolphin Entertainment Inc. (NASDAQ: DLPN … read my analysis here)
- Funko Inc. (NASDAQ: FNKO … read my analysis here)
- Shopify Inc. (NYSE: SHOP … read my analysis here)
- Cinedigm Corp. (NASDAQ: CIDM … read my analysis here)
- Visa Inc. (NYSE: V … read my analysis here)
Table of Contents
What Are NFT Stocks?
This is the number-one question that I get about this crypto curiosity.
I don’t blame you for looking for a second opinion. Here’s Matt Monaco, who never compared NFTs to Tickle Me Elmos, explaining what NFT means:
Matt and Bryce Tuohey run Small Cap Rockets. It’s a StocksToTrade alert service that specializes in niche runners, yep, like NFT stocks.
They’ve nailed some of these NFT runners:
Matt compares NFTs to trading cards. They can get super valuable.
They don’t seem like a gimmick to me anymore. There’s some crazy crypto sympathy momentum in the sector…
From July through September, NFT sales hit $10.7 billion! That’s an eightfold improvement on the previous quarter.
As far as NFT stocks, the meaning of this grassroots interest can’t be overestimated.
When people are interested in something, it makes news. And news is the biggest reason that stocks make big moves.
The NFT stocks on this list have made big moves in the past. With the NFT sector growing at an exponential rate, they have the potential to catch fire again.
NFT Stocks to Watch
I don’t know if NFTs will last. I don’t know if we’ll be talking about NFTs next year or in five years…
But I don’t have to know that to trade NFT stocks. I can see when a stock is being pumped…
What does $TKAT hit at 4:15AM tomorrow?
— Timothy C. Bohen (@tbohen) March 22, 2021
And I can see when a stock has trading potential.
You should never look at a watchlist or an alerts service for NFT stocks to buy…
These aren’t the ‘best’ NFT stocks…
They’re just interesting stocks in the sector that I’m tracking. I’m showing you my work here.
By learning their charts and history, I’m preparing. Luck favors the prepared mind…
That’s because trading doesn’t come down to luck.
The patterns that I trade tend to repeat, and I want to be ready the next time they do. Here are the five stocks I’m keeping on top of my NFT watchlist.
NFT Stock #1: Dolphin Entertainment Inc. (NASDAQ: DLPN)
I wasn’t exactly a believer in DLPN when it first spiked on NFT news.
(Skip to 7:19 if you want to hear a hall-of-fame rant on the subject!)
Back then it seemed DLPN was just the latest junk stock to spike on NFT news. In March, DLPN partnered with Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV) on an NFT venture…
That was around when crappy stocks like Liquid Media Group Ltd. (NASDAQ: YVR) and Jiayin Group Inc. (NASDAQ: JFIN) spiked on NFT news.
Take a look at their charts. They’re all roadkill. They’re all back at their pre-March levels.
Hall of Fame Resort & Entertainment Co. (NASDAQ: HOFV) YTD chart (Source: StocksToTrade)
Here’s YVR’s chart:
Liquid Media Group Ltd. (NASDAQ: YVR) YTD chart (Source: StocksToTrade)
And here’s JFIN’s chart:
Jiayin Group Inc. (NASDAQ: JFIN) YTD chart (Source: StocksToTrade)
Not DLPN. Sure, it crashed hard after shooting up 560% in two days…
But its post-March lows still held around the $8s. That showed me that everyone wasn’t jumping ship.
In August it made more NFT news. This spike was much tamer than its March run. Which is funny — it seems like a bigger deal.
DLPN’s partner this time is one of the largest U.S. crypto exchanges, FTX.US. The plan is to establish a large-scale NFT marketplace.
Who knows if anything will come of it. For now, DLPN is still grinding away, ready for the next news spike.
NFT Stock #2: Funko Inc. (NASDAQ: FNKO)
Here’s another stock that’s held up well after the initial NFT frenzy.
It spiked in March and April on NFT news…
It climbed all through May. But since then it’s been trending down.
FNKO dropped on an earnings report that saw it double its expected profit per share in August. A few days earlier it had released its first line of Digital Pop! NFT packs.
This might have been a case of ‘buy the rumor, sell the news’ … But the news is pretty cool.
If you’ve been inside a cool toy store in the past 20 years, you know Funko. They’re the toymaker that makes the toys with oversized heads.
They’ve made Harry Potter, Marvel, and Disney editions. Boxed Funko toys sell for thousands of dollars on the resale market. So you know they’re no stranger to collectibles.
The stock has been pretty range-bound since mid-July. But I like its potential to run in the future.
The company has come up with a cool entry point for NFTs. Digital packs sell for under $10 each. If you get lucky, you’ll get a coin redeemable for a physical toy.
NFT Stock #3: Shopify Inc. (NYSE: SHOP)
Take a peek at SHOP’s July peak…
This pricey stock climbed 19% leading up to July 26. That’s when Shopify president Harley Finkelstein tweeted about a pivot into NFTs…
The 10% decline that immediately followed seems like a clear case of selling the news. There’s also been a drop-off from the stay-at-home economy.
From March 2020 to that July peak, SHOP gained about 450%! And 2020’s earnings-per-share were up 700% in 2020 over 2019.
To me, this looks like a company that’s still doing well. And it’s shown it can move on NFT news.
With 1.7 million businesses in 175 countries on the commerce platform, it may have more very soon.
NFT Stock #4: Cinedigm Corp. (NASDAQ: CIDM)
Here’s a lower-priced stock in the NFT space.
Cinedigm is an entertainment company with several streaming services and licensing deals. It has distribution rights to a growing library of films. And it’s started to make NFTs with them.
Its first NFT launch featured two remastered classic films. They came with bonus materials in a limited-edition bundle.
CIDM stock has been slowly gaining since July. News is never in short supply, with a steady stream of acquisitions and new product launches.
It doesn’t seem likely that its NFT wing will become a big source of profits. But it might get nostalgic traders inspired enough to pump in some volume.
NFT Stock #5: Visa Inc. (NYSE: V)
At the end of August, Visa made headlines by spending $150,000 on a CryptoPunk NFT.
This news didn’t do much for Visa stock. But it did goose CryptoPunk trading. Trades of the ‘first NFT’ went up more than 450% the week that Visa bought in.
Visa framed its buy as a first step into the NFT space. An August press release hinted at “some new concepts and partnerships that support NFT buyers, sellers, and creators.”
If and when that news drops, expect more sympathy plays.
Conclusion
NFTs look stronger than ever…
There will always be gimmicky stocks like YVR trying to hitch a ride on the next hot trend. You can trade them … but know that the ride will end. And when it does, it will be sudden!
Will the stocks on this list run again? Well, just like NFTs, there’s no telling where they’ll go next. But if they do, I’ll be ready for it.
What do you think about NFT stocks? Have you traded them before? Let me know in the comments!