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3 Blockchain Stocks to Buy Now: May 2024
With Bitcoin (BTC-USD) prices are gaining again, growth-focused investors may want to turn their attention to blockchain stocks, many of which could be trading at attractive valuations now that applications of blockchain technology outside of cryptocurrencies are starting to lose some ‘ of lustre. Indeed, blockchain has great potential beyond Bitcoin and the like. Perhaps some applications will surpass the hype generated by non-fungible tokens (NFTs) just a few years ago.
In fact, it’s probably still early days when it comes to blockchain technology. As leading innovators look to incorporate technology as part of their businesses, perhaps some economic benefits can be gained. For now, however, generative artificial intelligence is the main quest of technology companies to reduce costs, increase sales and create value. And while generative AI is undoubtedly the most timely technology to bet on, I wouldn’t count blockchain innovators out of the game here either.
Block (SQ)
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To block (NYSE:m2) is one of my favorite ways to play into the long-term future of blockchain technology. The company is not only a huge supporter and investor of Bitcoin, but is also helping to advance the field of blockchain technology. If CEO (or “Block Head”) Jack Dorsey hadn’t taken the potential of blockchain seriously, he probably wouldn’t have renamed his company from Square to block.
Perhaps one of the most intriguing projects Block has worked on through its subsidiary TBD is Web5, a vision of a decentralized version of the Internet that is based on the Web3 concept. Indeed, it is difficult to imagine the next generation of the web, be it Web3 or Web5.
Regardless, Dorsey appears to be cooking up something special with a blockchain-powered web that could have a greater emphasis on protecting one’s digital identity. Web5 represents an intriguing vision of the future, but there’s just one problem for potential investors: It’s unclear when and if the initiative will deliver a reasonable return on investment.
PayPal (PYPL)
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PayPal (NASDAQ:PYPL) is another company that is exploring the possibilities of advancing the field of digital payments. It is one of the pioneers of the early days of the Internet, and now that there is more competition, PayPal is looking to tap into innovation to regain an edge.
With its own stablecoin and its own skin in the cryptocurrency investing game, PayPal has a lot of skin in the cryptocurrency game. Looking ahead, PayPal may look to increase its exposure to other fields within cryptocurrencies and blockchain. Perhaps PayPal could have the solution to reducing the carbon footprint produced by cryptocurrency miners.
Last month, PayPal has announced that it will join forces with Energy network AND DMG Blockchain Solutions to incentivize Bitcoin miners, many of whom are power guzzlers, to operate in a more eco-friendly manner. I’m a big supporter of this effort, as PayPal tries to do its part to make Bitcoin mining greener.
IBM (IBM)
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IBM (NYSE:IBM) the stock has gained traction of late, thanks in part to its exposure to the AI race with Watson. In addition to artificial intelligence and Watson, IBM is also involved in emerging areas of technology, including quantum computing and blockchain technology.
After falling 15% from its March 2024 high of nearly $198 per share, IBM stock looks like a dirt-cheap way to take advantage of some pretty impressive emerging technologies. While it took a while for IBM to kickstart growth, I think it has the right cards in place to sustain the gains it made last year.
THE IBM Blockchain Platform is a cloud-based Blockchain-as-a-Service (BaaS) offering that aims to help enterprise customers unlock the value that can be gained from this intriguing technology. As the platform advances, there may be more perspectives beyond AI to love in the company. With a P/E ratio of 19.16x, IBM stock looks like a solid value option for income lovers (3.95% yield at writing) and those seeking growth.
As of the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.
Joey Frenette is a senior investment writer specializing in technology and consumer stocks. Contributing to Motley Fool Canada, TipRanks and Barchart, Joey excels at identifying mispriced stocks with long-term growth potential in a fast-paced market.