The best emerging tech stocks for 2022
To find the best emerging tech stocks to buy in 2022, we first need to find out the top tech trends for 2022. If you can successfully identify emerging trends in the company, then investing is much easier. This is because most societal trends will lead to increased profits for specific companies. For example, it is clear that no one could have predicted the 2020 pandemic. However, investors could predicted the impact of the pandemic on different businesses. In 2020, tech stocks like Shopify, Amazon, and Zoom all surged. On the other hand, entertainment stocks like Live Nation and Disney have had a much harder time.
Fortunately, there are many emerging trends to capitalize on in 2022. For example, the Metaverse, Web 3.0, or the Billionaire Space Race are all great places to start. However, I have already covered most of these topics. Instead, I want to focus on another rapidly growing space: NFTs.
A non-fungible token (NFT) is a unique digital token that can represent just about anything. These tokens live on a blockchain and cannot be replicated. This makes it incredibly easy to determine a true NFT from a copy. Until now, NFTs have been used for digital art, games, sports collectibles, etc. However, it looks like their role could expand quickly.
2022: the year of the NFT?
NFTs were a tech trend that completely exploded in 2021. This means companies in the NFT space are likely among the top emerging tech stocks for 2022.
After looking at all the data, it appears that NFTs still have a lot of room to grow. We can determine this by looking at the total volume of NFTs traded in popular markets. Currently, the most popular market to buy NFTs is OpenSea. OpenSea has completed more than $ 10 billion in transactions since its launch in December 2017.
As of January 2021, OpenSea had only 36,195 registered users. In July, that number skyrocketed to 145,527. As of January 2022, it now has 935,000 users. It is certainly an exponential growth.
OpenSea’s total transaction volume has also skyrocketed. In 2020, OpenSea processed a total volume of approximately $ 21 million. It completely eclipsed that number in 2021. In August 2021 alone, OpenSea reported more than $ 3 billion in transaction volume. This momentum has not yet slowed down in 2022. On January 3, 2022, OpenSea announced a volume of $ 255.9 million. It was the highest since August 2021 and more than 10X its total volume in 2020.
There is another way of saying that the NFT boom is not slowing down. This is by looking at the volume of Google search traffic for “NFT”. OpenSea’s volume first increased in August 2021. However, search traffic for NFTs just hit an all-time high at the end of 2021. To be precise, it had its highest search volume. high from December 12 to 18, 2021.
That said, let’s dive into the best emerging tech stocks for 2022.
NOTE: I am not a financial advisor and simply offer my own research and commentary. Please exercise due diligence before making any investment decisions.
Emerging Tech Stocks # 3 Coinbase (Nasdaq: COIN)
Coinbase is the largest marketplace for cryptocurrency trading. It also has a perfect Nerdwallet rating of 5/5 compared to other trading platforms. Now he is entering the NFT game. More specifically, he is launching his own NFT marketplace. Coinbase made the announcement on October 12, 2021. Investors expect this market to be up and running sometime in 2022. It could be so huge that CEO Brian Armstrong expects it to be bigger than Coinbase’s cryptocurrency activity. This makes Coinbase a prime candidate as one of the best emerging tech stocks for 2022.
The Coinbase NFT market has the potential to completely dominate NFTs. Despite the numbers at the start of this article, NFTs still haven’t reached the general public. This will likely change once Coinbase’s platform goes live. Indeed, Coinbase has over 73 million users in over 100 countries. It’s also an incredibly reliable name. This new market will introduce tens of millions of people to NFTs who previously had no knowledge of them. For example, OpenSea has around 1 million users. On the other hand, Coinbase has already received over 2.5 million emails to register for its marketplace.
Check the announcement page for updates on the market release date. As I write this it just says “coming soon”.
In the third quarter of 2021, Coinbase reported revenue of $ 1.31 billion and net profit of $ 406.1 million. These numbers have increased by 316% and 399% year over year (YOY) respectively. Considering it just went public, Coinbase is already incredibly profitable. In 2020, it declared a profit margin of 25.28%. This number was much higher in the 3 reported quarters of 2021.
Coinbase went public in April 2021. Its stock has been much like a Russian coast since then, but is currently down around 30%.
Emerging Tech Equity # 2 Gamestop (NYSE: GME)
This 2021 short squeeze fame meme stock is also launching an NFT market. âGamestop NFT marketplaceâ was another term that recently appeared on Google Trends. The introduction of NFTs is part of GameStop’s business overhaul. The new management team are keen to take GameStop from a physical business to an e-commerce / tech business. If this transition is completed quickly, it could make GameStop one of the top emerging tech stocks over the coming year.
That said, the GameStop NFT marketplace is not as exciting as Coinbases. This is mainly due to the association of the brand. Today, GameStop is still known for retail stores that sell video games. In 2021, he became known for his short presses, his monkeys and âgoing to the moonâ. None of these things have anything to do with NFTs. Because of this, GameStop will have to do a lot more work to change consumers’ perspectives on its business.
Despite ambitious plans, GameStop’s business was still in the red for most of 2021. In the third quarter of 2021, it reported revenue of $ 1.3 billion and a net loss of $ 105.1 million. of dollars. In 2020, its stock was up about 650%.
GameStop’s NFT market could still be significant. It will probably take longer to materialize than Coinbasses. Its announcement page also offers very little information.
Emerging Tech Equities # 1 DraftKings (Nasdaq: DKNG)
There is actually at least one other public company that has an NFT market. This market place is also already fully active. DraftKings offers an NFT Marketplace with tons of sporting collectibles. Following the same NFT thesis, this makes Draftkings one of the best emerging tech stocks for 2022.
Notably, DraftKings has partnered with Tom Brady’s Autograph.io. Autograph is a company that offers digital collectibles from some of the biggest names in the sport. It contains various collectibles from legends like Derek Jeter, Simone Biles, Tiger Woods, Tony Hawk, Noami Osaka, Usain Bolt and (of course) Tom Brady.
DraftKings just launched its NFT Marketplace in the third quarter of 2021. So far, the Marketplace has been successful. In total, he had 70 launches that were oversubscribed by 14X on average. The market also generated $ 20 million in gross merchandising volume. I personally tried to get on the waiting list for two Simone Biles drops. I waited until the second I was allowed on the waitlist, but ended up over 10,000 people each time.
There are plenty of reasons for investors to be excited about GameStop right now. However, for full transparency, booming profits are not currently one of those things. In the third quarter of 2021, DraftKings reported revenue of $ 212.48 million and a net loss of $ 545.03 million. In 2020, his net loss was over $ 1 billion. However, that loss could be an outlier due to pandemic lockdowns.
For the future, DraftKings plans to create its own NFTs. This will reduce his dependence on Autograph. Overall, DraftKing’s stock is down almost 50% in 2021.
Hope you found this article on the best emerging tech stocks for 2022. As usual, please base all investment decisions on your own due diligence and tolerance for risk.
About Teddy Stavetski
A graduate of the University of Miami, Teddy studied marketing and finance while playing for four years on the soccer team. He has always had a passion for business and used his experience from a few personal projects to become one of the top rated business copywriters on Fiverr.com. When he’s not hammering out words on paper, you may find him hammering notes on the piano or walking to a random place.