The 3 Best Web3 Stocks to Buy in January 2024

The best Web3 stocks this month will partially ride on the coattails of the most recent Bitcoin (BTC-USD) ETF approval. The spot ETF for Bitcoin should drive significant growth for the cryptocurrency in the future. This is because ETF providers will be required to purchase a large amount of the coin, which could cause the crypto price to surge.

The other best Web3 stocks to look out for are ones that are powering other aspects of this next-generation internet. These companies have established a foothold in industries such as the metaverse, virtual reality, and the next generation of social media platforms. Some analysts anticipate that all of these separate catalysts will converge into one, making them complementary.

So, read here if you are looking for the best Web3 stocks to invest in for January. Here are the best companies to add to your portfolio.

Coinbase (COIN)

Coinbase (NASDAQ:COIN) continues to be important for U.S. cryptocurrency investors. It has managed to maintain its first-mover advantage in the face of larger competing platforms such as Binance. It has successfully rolled out many improvements and integrations over the years to keep its revenue from transaction fees rolling in.

COIN is expected to play a much larger role in the crypto ecosystem due to Bitcoin ETF approval. It has already recorded $7.7 billion in Bitcoin sales on the historic launch day of the ETF.

I predict that investors (both retail and institutional) will continue to pour into these ETFs over time, and COIN will be the main conduit to facilitate these transactions for many.

Brian Armstrong, CEO of Coinbase, expressed his views on the approval of spot Bitcoin ETFs with optimism: “This is a monumental step for the crypto industry and for Coinbase,” he went on to say, “This ETF is really about unlocking new pools of capital that weren’t previously available.”

If the CEO’s assessment of COIN’s position is anything to go by, we can expect great things for this company for the rest of January and the rest of the year.

Meta Platforms (META)

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Meta Platforms (NASDAQ:META) also indirectly benefit from the Bitcoin ETF announcement, as it has a do-or-die strategy of bringing the metaverse idea to the masses. Those exposed to cryptocurrencies may explore other decentralized asset types and governance structures, which explore key themes in making virtual communities a closer part of our lives.

The main reason I’m bullish on META for this month is that analysts predict that the company could be in the process of making a big move. It’s relatively undervalued when comparing its trailing P/E and P/S ratios. Analysts predict these measures will improve significantly in the future.

Furthermore, META stock carries a “Strong Buy” recommendation from Wall Street, along with some forecasts to suggest its share could climb to $400 and above.

Specifically, analysts predict META’s revenue will climb to 154.05B this year for a 13.08% YoY increase. Its EPS is also predicted to shoot up to 17.74 for a solid 21.19% return. This then makes META one of those best Web3 stocks to buy.

Unity Software (U)

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Unity Software (NYSE:U) is in a slightly different position than the other companies, but I believe a strong upside remains for this pick.

This company provides some of the ‘picks and shovels’ to allow key Web3 trends such as augmented reality and the metaverse to take shape. Its Unity gaming engine is also highly popular with independent and large publishers alike.

This may sound paradoxical, but a key reason to be bullish on Unity this year is that it announced a series of layoffs, with its most recent affecting 25% of its staff members.

All else being equal, companies tend to do better after removing that kind of overhead. This is both from a company performance and stock price perspective. Smaller businesses are generally leaner and more efficient due to having fewer moving parts, making them simpler to manage and execute management’s strategy.

The layoffs were in response to management’s need to focus on its Unity Game engine, part of a business segment the company is now leaning on to derive its future earnings.

Unity has bled cash flow for some time, but these changes and its broader restructuring process should get Wall Street analysts to finally put the company in the black. This makes it one of those best Web3 stocks to buy in January.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.