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You have been warned! 3 Blockchain Stocks to Buy Now or Regret Forever
Although cryptocurrencies have largely eclipsed the underlying technology, smart investors are not losing their grasp of blockchain’s long-term potential. THE World Economic Forum recently published in long piece describing many potential applications of blockchain technology, including luxury goods authentication, personal data management, and even advanced integrations with artificial intelligence and spatial computing.
The Catholic Church is too leveraging blockchain technology; in this case, the Vatican is converting manuscripts and printed books within its massive library and collections into NFTs in an example of “demonstrating the usefulness of blockchain technology in safeguarding cultural heritage.”
The hard part, of course, is determining which blockchain stocks to buy that offer long-term exposure to blockchain opportunities, while minimizing the scam, fraud, and general confusion of questionable certainty of the associated crypto asset classes. But, in my opinion, these blockchain stocks offer the best opportunity to do so, if you can stomach the volatility in the meantime.
Accenture (ACN)
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Consulting company Accenture (NYSE:ACN) might seem like an unusual choice to buy among blockchain stocks, given its professional services-based business model. However, Accenture distinguishes itself from other consulting competitors by being one of the few mega-cap multinational companies that offers a full suite of blockchain-based services. These include blockchain Business Integrationmetaverse management, supply chain optimization and digital identity management.
As blockchain technology continues to evolve and more companies of various sizes and sectors explore its potential to address different challenges, the need for specialized consulting services for customized blockchain solutions will become more and more pressing. Accenture’s early, large-scale investment in this niche positions it for long-term growth and success in the blockchain consulting arena.
At the same time, Accenture’s wide-ranging professional services set it apart from more speculative blockchain stocks and help ground it. The company is the majority recent report included expanding operating margins and continued dividend strength but, notably, also saw an increase in Generative AI sales as the company positions itself as a leading technology consultancy capable of addressing a number of emerging opportunities.
Broadcom (AVGO)
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Like Accenture, Broadcom (NASDAQ:AVOID) actively assists companies in integrating blockchain technology into their daily operations. However, Broadcom’s role is more technical and provides the service essential infrastructure and the security needed to implement and manage the blockchain various applications. This pivot to blockchain services is a strategic move to diversify Broadcom’s revenue streams, addressing a long-standing challenge to the stock, especially after its acquisition of VMware.
Historically, Apple (NASDAQ:AAPL) contributed over 20% of Broadcom’s revenues across its 5G and wireless component segments. However, with VMware’s cloud computing synergies and a growing focus on blockchain technology, Broadcom is effectively reducing its reliance on a single large customer. Investors should note that the VMware integration will involve approx $1 billion of short-term transaction costs and, unfortunately, VMWare first quarter under its new parent company it did not deliver the performance some had hoped for. However, while there are valid criticisms regarding the stock fundamentally overratedthose interested in buying blockchain stocks for the long term will find something interesting in Broadcom.
Block (QS)
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To block (NYSE:m2) is doubling down on its blockchain equity identity. After a few months of beta testing, the fintech stock is slowly bringing its physical cryptocurrency wallet offerings to market. The saying “Not your keys, not your crypto” underscores Block’s appeal to customers wary of third-party custody, such as that provided by its subsidiary CashApp. Block’s BitKey wallet is unique from similar offerings in that owners can transact across three domains: via digital app, via physical hardware, and via an emergency access option hosted on Block’s servers to protect against theft or loss of your primary device.
Beyond its blockchain ventures, Block stands out as a distinctive player in the broader fintech space even as shares have tumbled throughout 2024, largely due to broader economic and monetary policy distress. However, the company combines the stability of a large enterprise with the agility and innovative spirit of a startup.
The company’s first-quarter report included a whopping 22% year-over-year gross profit increase, along with significantly improved margins nearly across the board. The company also quadrupled its net profit, making Block perhaps the most undervalued blockchain stock in today’s market.
At the date of publication Jeremy Flint holds no positions in the stocks mentioned. The opinions expressed in this article are those of the writer, without prejudice to InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and experienced finance writer, excels at content strategy for asset managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found on www.jeremyflint.work.