Best Web3 Stocks to Invest in 2023
Take your trading to the next level with these high-potential web3 stocks. Explore the potential of this new technology and find out where to put your money.
Updated Mar 6, 2023
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Investors, look out. From blockchain networks and smart contracts to crypto coins and artificial intelligence, web3 is making its way into the world of stocks and it's time for you to get on board.
Whether you're looking for short-term trades or long-term investments, we've come up with high-potential web3 stocks for you to watch. Put on your investing goggles and let's get to it.
Mark Zuckerberg knows a thing or two about the future of web3…[Meta Platforms has] a net cash position of $14.15 billion.
Crypto coins and NFTs have changed how we purchase and sell stocks. And now with web3, the market's getting even more exciting.
What is web3: The internet’s third generation
What is web3: The internet’s third generation
Web 3.0 is a revolutionary new era of the internet that is decentralized, permissionless, and trustless. It works by using blockchain technology, cryptocurrencies, and NFTs to provide ownership and decentralization.
Web3 is read-write-own, which means it puts the power back into the hands of builders and users, not just a handful of centralized entities. There's no middleman controlling web3 systems, so users can own their digital identities while interacting with decentralized finance projects.
Web3 provides a native payment paradigm that ensures no user is excluded because of who they are or where they’re from. It also allows owners to be their own custodians of their digital assets, truly owning their content and identity.
This blockchain-based web offers a great opportunity for the users to not only be a part of a system but to take ownership and control of their digital presence. In other words, web3 is an internet that we can all responsibly "goof off" on without any bureaucratic joy-killers getting in the way.
Web3 stocks are shares in companies involved in the web3 space such as video game industry heavyweight NVIDIA, Unity Software, and more. Gaining returns aren't just from stock price appreciation alone, but can also come from dividends. You can buy these stocks via an IPO or from a stock brokerage.
Best web3 stocks to invest in
Best web3 stocks to invest in
Web3 stocks proved highly profitable in 2021 with total venture capital investments of more than $32.4 billion. And in the first half of 2022 alone, investments surpassed $18 billion. With web3 now being used in various sectors such as social media, energy, gaming, art, and real estate, it's no surprise these stocks have continuously gained in popularity.
So if you want to get in on the action and grab the best stocks while they are hot, check out eight of the sizzling web 3.0 stocks you can invest in right now.
- Ticker: COIN
- 2022 High: $251
- 2022 Low: $32
Coinbase Global Inc. (COIN) has had a rollercoaster ride since its 2021 debut on NASDAQ. Despite an impressive 2021 with total sales of $7.4 billion, an opening price of $381, and soaring above $429, Coinbase has since seen huge losses due to the crypto market winter. Its stock price even fell below $40, representing a massive end-to-end decline of over 80%.
As one of the most trusted web 3.0 stocks, it’s a safe bet.
On February 24, 2023, Cathie Wood's Ark Invest purchased a total of 150,192 Coinbase (COIN) shares split between ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) at a price of $58.
Acquisitions and investments in new companies is the fastest way to become entrenched as a leader in web3 technology—Coinbase’s venture capital arm launched to do just that. Plus, with $5 billion of cash and cash equivalents on its balance sheet as of September 30, 2022, Coinbase looks to be in a pretty solid financial position.
Having seen the biggest dip in pricing since 2021, Coinbase surely has strong potential for growth in the future. In short, Coinbase Global stock is no doubt a ‘buy low, sell high’ stock. With regulations and security a major priority, Coinbase may just be the leader of the next crypto wave, acquiring companies and building new web 3.0 businesses. We can only wait and see how it plays out.
2. Advanced Micro Devices
- Ticker: AMD
- 2022 High: $151
- 2022 Low: $54
Advanced Micro Devices (AMD) stock has been on a roller coaster ride for the past year. After hitting a 2022 high of around $151, shareholders have seen the stock price fall back to just over $79 per share. But despite the downturn, investors remain optimistic.
AMD, founded in 1963 and headquartered in Santa Clara, is a heavyweight in the semiconductor field with its cutting-edge graphics processors, chipsets, and microprocessors. The market cap of this dynamic company sits at
with an enterprise value of $120 billion. That's a lot of dough, but the acquisition deals they've finalized make that figure worth it.
The Ryzen 9 7950X3D is AMD's latest offering, and it is touted as the fastest gaming CPU on the market.
In February 2022, AMD made headlines by acquiring Xilinx with an impressive $49 billion all-stock deal, while also closing the Pensando Systems purchase worth $1.9 billion some months later.
Consequently, in June 2022, AMD's total addressable market reached a hefty $300 billion, an increase of $221 billion since 2020. And its fourth-quarter results didn't just impress the shareholders but also earned cheers from analysts with 69 cents of adjusted earnings per share on sales of $5.6 billion—results that beat the expected 67 cents and $5.51 billion.
3. Unity Software
- Ticker: U
- 2022 High: $145
- 2022 Low: $21
Unity Software Inc.'s price has skyrocketed in the last couple of years, bucking the trend of market instability—and it's just getting started. With a stock price high of $145 in 2022 and a low of only $21, this is one stock that investors are sure to want to get in on.
Unity’s licensed game engine offers a slew of software solutions and development tools to create and monetize interactive, real-time 2D and 3D content on a variety of devices. Every content creator or developer, artist, designer, engineer, and even architect can benefit from Unity's tech in creating immersive and real-time augmented reality content.
Based on its impressive Q3 2022 results, Unity Software recently generated $322.9 million in revenue, representing a 13% increase from 2021 same time. The company's Create Solutions also brought in $171 million—reflecting the stock's potential for profitability and positive cash flows it generates, with a dollar-based net expansion rate for the period at 111%.
Unity has also made headlines lately by completing its merger with ironSource to create the ultimate end-to-end platform for the mobile app community. This move addressed the issue of the challenging ad market, to keep Unity nicely positioned for success in the coming years. Simply put, this stock is worth considering for any investor looking to grow their portfolio.
- Ticker: NVDA
- 2022 High: $307
- 2022 Low: $107
NVIDIA is a chip stock that has had a wild ride in the stock market. After crashing in 2022, NVIDIA stock is now up by a gigantic 60% year to date. Analysts are impressed with its performance, giving it an IBD Composite Rating of 96 which means it has outperformed 96% of all other stocks in terms of combined technical and fundamental metrics.
With a market cap of
and enterprise value of $509 billion, it's not hard to see why NVIDIA is pioneering the most exciting technological innovations and popular video games. The company's graphics segment is killing it with GeForce GPUs for gaming and PCs, GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms all helping to drive revenue up.
NVIDIA gave investors a reason to cheer when it released a stellar beat-and-raise report in February 2022, driven by the impressive performance of its data center segment, which includes AI chips. The demand for these AI chips pushed its data center revenue up 11%, bringing it to a total of $3.62 billion. Investors were so pleased that the stock skyrocketed 14% the very next day, leaving them scrambling to pick up as many shares as possible.
- Ticker: AAPL
- 2022 High: $182
- 2022 Low: $124
and an enterprise value of $2.42 trillion, Apple is one of the largest companies in the world. Aside from the iPhone, they’re best known for personal computers, from old macintoshes to sleek macbook pros.
In 2022, Apple brought in a serious $394 billion in revenue, a 7.79% increase from the previous year—now that's something to smile about. And if that wasn't enough, earnings skyrocketed to nearly $100 billion, a 5.41% increase from the last year.
Apple currently has 15.82 billion shares outstanding, with the number of shares decreasing by -3.41% in one year. And the financial side is just as impressive with a return on equity (ROE) of 163.5% and a return on invested capital (ROIC) of 38.6%—talk about efficiency. When you look at Apple stock, that's what you call smart money.
With all the amazing products and services that Apple offers, it's no wonder why they're not just selling computers but are transforming into an infrastructure layer for web3 development.
6. TE Connectivity Ltd.
- Ticker: TEL
- 2022 High: $166
- 2022 Low: $105
TE Connectivity Ltd is having a major party right now, celebrating its amazing performance in 2022. After serving up 316 million tasty shares, it has cooked up an enormous
market cap and a sizzling $43.5 billion enterprise value. TEL is a global leader in manufacturing sensors and other hardware for internet connectivity. It appeared in Fortune magazine's World's Most Admired Companies list, making it six years in a row.
Financially, the company has a cork-popping ratio of 1.66, with a debt-to-equity ratio of 0.37 and ROE & ROIC of 21.% and 20.1%, respectively. Not only has the company's spectacular performance made investors giddy, but its revenue was popping in 2022 at $16.28 billion—up a cool 9.1% from the previous year's $14.92 billion.
7. Block, Inc.
- Ticker: SQ
- 2022 High: $165
- 2022 Low: $51
Block, Inc. is the go-to card payment provider for sellers, enabling them to accept card payments, along with its one-of-a-kind tools and data analytics. Establishing itself as one of the most important names in the business, Block has a market cap of
, and an impressive enterprise value of $41 billion.
Furthermore, its financials are on point, with a 1.85 current ratio and a debt-to-equity ratio of 0.36. A look at its balance sheet shows that Block has $8 billion in cash and $6.28 billion in debt, which leaves an astonishing $1.69 billion in net cash.
The company built an operating cash flow of over $176 million in 2022 and spent $171 million in capital expenditures, eventually amounting to a free cash flow of $5 million. Hats off to Block, Inc. as it continues to strike the right financial notes.
According to CEO Jack Dorsey at Consensus 2022, the company's bitcoin arm (TBD) is getting ready to revolutionize the internet with its launch of web5. Its new vision promises to give users complete control over their own data, unlike the current approach of handing it off to third parties.
8. Meta Platforms, Inc.
- Ticker: META
- 2022 High: $343
- 2022 Low: $88
Remember those post-dot-com crash opportunists that popped up and took over the internet? One such business was Facebook. Mark Zuckerberg knows a thing or two about the future of web3, which is why he confidently flipped the switch on Facebook's rebrand to Meta Platforms.
Boasting a return on equity (ROE) of 18.6% and a return on capital (ROIC) of 21.1%, it's no wonder Meta Platforms is at the forefront of the metaverse. And with a net cash position of $14.15 billion (or $5.46 per share) and a current ratio of 2.20, not to mention a debt-to-equity ratio of 0.21, Mark is putting in the extra effort to make sure you're in excellent virtual hands.
With the prospects of web3 at its fingertips, Meta looks ready to dominate the metaverse and is already one of the most profitable companies in the web3 sphere.