Non-fungible tokens (NFT’s) have become the focal point of speculative trading lately, leading to a huge spike in the share prices of companies with exposure to NFTs. These digital tokens are generating hype among investors who are excited by this technology’s potential and believe that it could go mainstream soon. NFTs are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers. The global blockchain technology market is expected to grow at a 43% CAGR over the next six years to hit $30.70 billion by 2027.
The COVID-19 pandemic has made a big contribution to boosting NFTs’ popularity. Because people have been forced like never before to embrace the digital universe while stuck at home amid lockdown restrictions, the NFT space has gained momentum. Given that the hype is grabbing the attention of increasing numbers of investors, more companies are cashing in on the NFT craze.
Funko Inc. (FNKO)
Incorporated in 2017, FNKO is one of the leading creators and innovators of licensed pop culture products. It designs, sources and distributes highly collectible products across multiple categories, including vinyl figures, action toys, plush, apparel, housewares and accessories. The company’s aim is to provide consumers tangible ways to take their fandom offline.
This month, FNKO announced the acquisition of a majority ownership stake in TokenWave, LLC, the developer of TokenHead, a leading mobile app and website for showcasing and tracking NFT holdings. Its entry into the new digital space should lend FNKO the opportunity to leverage its broad range of existing pop culture content across Television, Movies, Sports, Music, Anime, Video Games and Comic Books with its licensing partners and drive business growth.
FNKO’s net income increased 337.1% year-over-year to $14.91 million in the fourth quarter ended December 31, 2020, while its EBITDA grew 452.2% year-over-year to $30.98 million over the same period. The company’s EPS came in at $0.29, which was an increase of 61.1% from its year-ago value.
A $0.11 consensus EPS estimate for quarter ended March 2021 represents a 375% improvement year-over-year. The $187.4 million consensus revenue estimate for the next quarter, ending June 2021, represents a 91.1% increase from the same period last year. The stock has gained 488.0% over the past year.
FNKO’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
FNKO is also rated a B in Growth, Value, and Momentum. Within the C-rated Entertainment – Toys & Video Games industry, it is ranked #8 of 26 stocks.
To see additional POWR Ratings for Sentiment, Stability, and Quality for FNKO, Click here.
Jiayin Group Inc. (JFIN)
Headquartered in Shanghai, China, JFIN is a leading fintech platform committed to connecting individual investors and individual borrowers. It operates as a secure and open platform that facilitates transparent, secure, and fast connections between investors and borrowers.
This month, JFIN announced that it will acquire a 95% equity interest in Shanghai Bweenet Network Technology Company Ltd., a company that is principally engaged in designing chips specialized in cryptocurrency mining, the distribution of cryptocurrency mining hardware, and the management of cryptocurrency mining farms and mining pools. The investment should provide JFIN with more opportunities regarding its future business development.
In the fourth quarter, ended December 31, JFIN’s operating income increased 283.3% year-over-year to RNB 52.95 million, while its net income increased 259.7% from its year-ago value to RMB 81.15 million. The company’s EPS increased 300% year-over-year to RMB 0.40.
Analysts expect JFIN’s revenue for the quarter ended March 31 to be $53.96 million, representing 20% year-over-year growth. The company’s EPS is likely to increase 90.9% year-over-year in the current quarter. JFIN has gained 212.7% over the past year.
It is no surprise that JFIN has an overall B rating, which translates to Buy in our proprietary ratings system. It also has a B grade for Growth, Value, Momentum, Sentiment, and Quality. In the Financial Services (Enterprise) industry, it is ranked #4 of 103 stocks.
In total, we rate JFIN on eight different levels. Beyond what we’ve stated above, we have also given JFIN grades for Stability. Get all the JFIN ratings here.
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FNKO shares were trading at $21.74 per share on Wednesday afternoon, up $0.10 (+0.46%). Year-to-date, FNKO has gained 109.44%, versus a 12.05% rise in the benchmark S&P 500 index during the same period.
About the Author: Samiksha Agarwal
Samiksha Agarwal has always had a keen interest in financial markets. This has led her to a career as a financial journalist. Through her extensive knowledge of fundamental analysis, her goal is to help investors identify untapped investment opportunities in the stock market. More...
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