Web3 stocks could reshape our digital future, ushering in an era of rapid growth and innovation.
To put it plainly, the Web3 phenomenon is a paradigm shift, facilitating the creation of an ‘Internet of value.’ It promises a future where digital assets can be seamlessly issued, owned and transferred, effectively revolutionizing digital assets’ ownership, value creation and transfer. With such breakthroughs, money will become more productive, ultimately benefitting the broader economy.
Moreover, despite the short-term concerns, the long-term potential of Web3 stocks is tough to deny. As we venture into this digital frontier, Web3 stocks can potentially drive forward the next wave of internet evolution. That said, here are three Web3 stocks that are leading the charge in the sector.
Unity Software (U)
Unity Software (NYSE:U) has been dabbling in several emerging technologies, and Web3 is no different. Though not a pure play, its immersive 3D environments and development tools will likely play a critical role in laying the Web3 architecture. Its versatile content creation platform continues to evolve, seamlessly integrating revolutionary new technologies to expand its market share further.
It added several functionalities last year that aim to effectively weave blockchain, NFTs and cryptocurrencies into its ecosystem. The goal is to empower creators to develop decentralized applications and virtual assets while creating new avenues for gaming experiences.
Web3 gaming could become massive over time, considering that blockchain-based gaming witnessed a whopping 2000% increase from 2021 to 2022. Unity, in particular, is pushing towards marrying game development with the burgeoning Web3 gaming sphere, potentially adding new chapters to its illustrious growth story.
Applied Digital (APLD)
Applied Digital (NASDAQ:APLD) is another top Web3 stock that powers the infrastructure behind transformative technology. APLD develops and operates data centers that are pivotal in running powerful computer programs, including those needed in crypto mining and blockchain. Its supercharged data centers are energy efficient and facilitate the creation of decentralized apps (dApps), key components of the Web3 vision.
From a financial standpoint, the company is doing well, ending last year with record sales at $55.4 million. Moreover, it maintained momentum in 2024, with back-to-back quarters of spectacular top-line expansion. In its most recent quarter, revenues were up a stunning 243.1% year-over-year (YOY) to $42.2 million, roughly 76% of its full-year sales figure in 2023. As we advance, the company remains incredibly optimistic, projecting the fiscal year 2024 exit with revenue and EBITDA run rates soaring to $500 million and $250 million, respectively.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has its hand in virtually every tech pie, and Web3 is no exception to this trend. It’s poised to play a critical role through its cloud computing behemoth, Amazon Web Services (AWS).
Cloud computing provides the muscle needed to run the networks that Web3 relies on, such as blockchain and dApps. Services such as AWS offer the infrastructure and related tools that allow Web3 projects to operate smoothly, securely and at scale. This means that as the sector evolves, AWS stands to benefit tremendously, becoming a backbone of the decentralized web.
Many analysts consider AWS alone a trillion-dollar entity, and its impressive numbers each quarter continue to add more weight to those claims. Amazon ended last year with AWS sales reaching an eye-catching $90.76 billion, up an incredible 13.3% over last year’s $80.10 billion. AWS accounts for about 16% of Amazon’s total sales, which grows steadily each year.
On the date of publication, Muslim Farooque did not have (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 the InvestorPlace.com Publishing Guidelines