Despite the crypto focus, the hype around Blockchain – the technology that serves as the underlying fabric of Bitcoin – has never died down. More and more companies are dipping their toes into technology. U.Today has decided to present to you a list of stocks of the world’s largest Blockchain-related companies that may go on sale this February.
IBM [NASDAQ: IBM]
IBM, along with Microsoft, control a whopping 51 percent of the Blockchain market. As U.Today previously reported, the American tech giant is trying to use Blockchain technology to revive its brand. Hyperledger Fabric is an enterprise-friendly platform that enables other companies to build products that run Blockchain. As of now, IBM manages more than 500 Blockchain projects worldwide.
On that note, IBM seems to be the top option when it comes to Blockchain stocks given the extent of its involvement in the nascent technology. What’s more, IBM shares have been on a roll throughout January, and its recent earnings report, which managed to beat analysts’ forecasts, sent the stock soaring even higher.
Alibaba Group [NASDAQ: BABA]
Alibaba, a Chinese e-commerce company that is responsible for submitting nearly 10 percent of all Blockchain-related forms, is another prime example in the application of Blockchain technology. As of September, Alibaba and IBM were neck and neck in that department, with 90 and 89 patents respectively, despite the fact that China has taken a hawkish stance on cryptocurrencies.
As with IBM, its Blockchain as a Service (BaaS) product is an enterprise-level platform that allows its users to build their own Blockchain-based projects. After a successful rollout in China, Alibaba is opening its Blockchain doors to the US and Europe, which could make the stock more attractive.
The ongoing trade war between the US and China could scare away those considering investing in the stock, but there’s no need to – MKM Partners says Alibaba stock will be able to weather macroeconomic woes. The company’s shares rose on January 25.
Overstock [NASDAQ: OSTK]
Amazon’s rival Overstock.com also uses Blockchain technology. Because of its crypto-friendly stance, the US retail giant’s stock surged by a mammoth 400 percent in 2017-2018.
Medici Ventures, its Blockchain-oriented subsidiary, is constantly investing in various Blockchain-oriented projects. For example, it bought a stake in Blockchain-based agricultural company GrainChain on December 10.
Back in November, the pioneering e-commerce player announced its plans to ditch retail to go all-in with Blockchain. So it became clear that his interest in cryptocurrencies was more than just an attention-seeking gimmick. U.Today reminds readers that Overstock was the first major retailer to accept Bitcoin. Overstock hasn’t enjoyed much success, losing nearly $40 million in 2018, which would be a worrying sign for those planning to buy its stock. However, at the height of the launch of its trading platform tZERO, which went live on January 24, Overstock decided to assign CEO Medici to boost its revenue. Therefore, our verdict is that the stock would be a good buy this February.
Qualcomm [NASDAQ: QCOM]
Qualcomm, one of the world’s leaders in wireless telecommunications products, is currently using Blockchain technology to solve the problems of its client-server-based information system. However, the company has been tight-lipped about the Blockchain-oriented patents it has up its sleeve.
The company’s shares have fallen 10 percent since December 2018, but some experts claim the stock has already bottomed. So we might consider buying the stock this February simply to profit from the volatility (the stock is currently 32 percent off its 2018 peak).
However, the fuss over 5G may be a fair reason why the chip maker’s stock could also be a good option in the long term. Qualcomm is expected to dominate the niche modem chip market in the age of 5G along with Intel [INTC].
Comcast Corporation [NASDAQ: CMCSA]
American telecommunications giant Comcast is also betting on Blockchain. On December 21, 2018, the American telecommunications conglomerate issued a press release stating that its Blockgraph product would become available to businesses early this year (Comcast is currently testing the product with NBCUniversal). The initiative should help them share data in a safe and transparent way. Eventually, Blockgraph could become the ‘identity layer’ for the entire cable news industry.
This isn’t Comcast’s first foray into nascent technology — back in March, Comcast led a seed VC round for Blockchain startup Blockdaemon.
Why Comcast Stock Could Be a Good Pick for February? Its stock recently rose on earnings that beat analysts’ initial forecasts. On top of that, the company lost fewer video subscribers than expected.
Other public companies
Of course, there are plenty of other publicly traded companies that didn’t make the cut. Here are some examples:
MetLife, Inc. [NASDAQ: MET] – working on Blockchain-based solutions for the insurance industry;
Ford Motor Company [NASDAQ: F] – Leads Research Group Examining Blockchain Applications in the Automotive Industry;
Goldman Sachs [NASDAQ: GS] – a crypto-friendly bank that considered opening its own Bitcoin trading desk (plan postponed);
Amazon [NASDAQ: AMZN] – one of the leaders in Blockchain-related patents, which recently partnered with ConsenSys, led by Ethereum co-founder Joseph Lubin;
Nestle [NASDAQ: NSRGF] – Switzerland-based food giant uses Blockchain to increase shipment efficiency.
Tokenization – a new trend?
Tokenization of stocks has become one of the biggest trends in the cryptocurrency space. Recently, U.Today reported on a new exchange based in Estonia, DX.Exchange, that sells shares in the form of Ethereum-based tokens. The exchange, powered by NASDAQ, is expected to bridge the two markets. Zilliqa has also launched a similar exchange that tokenizes the stock of decorators (companies worth more than $10 billion).
With tech giants exploring (or even jumping ahead of) Blockchain and stocks of major companies actually trading on Blockchain, it’s clear the technology isn’t going anywhere. According to WEF projections, 10 percent of global GDP is expected to be stored on Blockchain.