Bitcoin (BTC) and other cryptocurrencies have generated a lot of buzz on Wall Street in recent years, but many technology experts believe that the blockchain technology underlying them will ultimately become more popular in the world than the currencies themselves. says it will have a far greater impact. They claim that blockchain technology could become the foundation of Web3. Web3 is the collective name for the next generation of decentralized internet that transfers control from Big Tech companies to users themselves. Artificial intelligence and machine learning technologies will likely become widespread in Web3, making the Internet a more useful, powerful, and adaptable tool for all users.
Unfortunately, the Web3 concept is still in its infancy at this point, so stocks focused solely on blockchain technology, the Metaverse, and building Web3 infrastructure could face a difficult and risky path. Also, Web3 is currently more of an idea or story than an actual network, adding more risk and uncertainty to the equation.
Some of the best-performing stocks of the past 20 years – including Meta Platforms Inc. (ticker: META), Amazon.com Inc. (AMZN), Alphabet Inc. (GOOG, GOOGL), and Netflix Inc. (NFLX) – plays a central role in how we now interact with the web, and investors who identify Web3 stocks early can generate huge profits as well.
Here are the top five Web3 stocks to buy today, according to Bank of America analysts.
| stock | Implied upside to February 1st closing price |
| Nvidia Inc. (NVDA) | 11.1% |
| Meta Platforms Inc. (META) | 7.7% |
| Block Co., Ltd. (SQ) | 27.5% |
| Roblox Inc. (RBLX) | 37.3% |
| Unity Software Co., Ltd. (U) | 72% |
Nvidia designs and markets high-end graphics and video processing chips used in desktop and gaming personal computers, workstations, and other advanced computing servers and supercomputers. Whatever form Web3 ultimately takes, it will likely require the vast amount of processing power provided by Nvidia chips.
Nvidia Omniverse is a computing platform that enables the development of Universal Scene Description (OpenUSD)-based 3D workflows and applications, allowing creators to build custom extensions, tools, and metaverse applications with little or no coding. .
Analyst Vivek Arya predicts that with all of NVIDIA's demand boost, the company can sustain annual revenue growth of more than 22% through at least 2026.
“NVDA believes we are still in the first (approximately) 25% of converting the world's $250 billion computing infrastructure to acceleration/AI computing,” Arya said in a research note. Masu.
Bank of America has a buy rating on NVDA stock, a price target of $700, and a February 1 closing price of $630.27.
Meta Platforms Inc. (META)
Meta Platforms owns and operates the world's largest social media and messaging platforms, including Facebook, WhatsApp, Messenger, and Instagram.
Meta has emerged as one of the biggest winners in the current iteration of the internet, with controversy over Meta's control and use of user data, user privacy and content censorship creating a more decentralized web. Often cited by Web3 proponents as a motivation. But Meta CEO Mark Zuckerberg has always had a strong vision for the future of the internet, and the company has focused on building a Metaverse that incorporates blockchain and his AI technology, as well as virtual and augmented reality capabilities. I moved it.
Analyst Justin Post said: “There is a favorable macro environment for advertising, Reels' contribution turns positive in 2024, with large messaging revenue growth underway and strong AI assets driving performance. “However, we remain positive on the stock as there are still plenty of costs to reduce where necessary.” I wrote it in my memo.
Bank of America has a “buy” rating on META stock, a price target of $425, and a February 1 closing price of $394.78.
Block is a financial services and digital payments company and the parent company of the Square payments platform for businesses and the digital payments app Cash App. Block allows Bitcoin transactions through Cash App and holds Bitcoin on its balance sheet as an alternative to cash.
Block is a pioneer in decentralized peer-to-peer payments, and decentralized finance (DeFi) could play a central role in Web3. Block's Spiral subsidiary builds and funds free and open source projects specifically aimed at making Bitcoin the world's leading currency.
Analyst Jason Kufferberg said Block's management is refocusing on improving execution for 2024.
“We remain confident in the quality of (Block's) business model, look forward to the results of SQ's strategic refocus, and believe the stock is undervalued,” Kupferberg said in a note. “There is,” he said.
Bank of America rates SQ stock a “buy,” with a price target of $85 and a February 1 closing price of $66.67.
Roblox, an online entertainment platform that allows creators to develop games, may be the closest thing to a functioning Metaverse today. Roblox had 70.2 million daily active users as of the third quarter and features its own digital currency and a variety of unique virtual experiences. About half of its users are under the age of 13, including Web3, and the company could be in a very favorable position for the future.
Roblox CEO David Baszucki appears to be embracing the Web3 principles of decentralization and interoperability, recently telling CNBC that blockchain-based non-fungible tokens (NFTs) and other digital assets will eventually said it has the potential to move seamlessly across the Roblox ecosystem, including to and from other Web3 platforms. .
Analyst Omar Desouky wrote that Roblox is “the clear leader in the metaverse and[user-generated content]and is expected to grow faster than any other gaming or social media asset over the next five years.” ing.
Bank of America has a “buy” rating on RBLX stock, a price target of $54, and a February 1 closing price of $39.33.
Unity Software owns one of the two leading 3D video game engines that designers can use to customize how video game players move and interact within their games. Masu.
In 2023, Unity added a new decentralized category page to the Unity Asset Store. This page contains solutions to support developers focused on enabling decentralization in games. Many gamers and investors believe that Web3 versions of online games include an in-game ownership model that allows players to earn, create, and acquire in-game resources, and then use blockchain technology. We anticipate that customers will be able to sell and trade within and across various networks.
Analyst Michael Funk predicts Unity will continue to see annual revenue growth in the double-digit percentage range for the foreseeable future.
“We believe the improved monetization of U's industry-leading mobile game production engine and the stabilization of the mobile game advertising market create a compelling risk-reward profile,” Funk wrote. There is.
Bank of America has given U stock a “buy” rating, a price target of $55, and a February 1 closing price of $31.97.
