FNKO VS PLBY: Which NFT stock is more attractive for investment?

The market for NFT stocks is recently booming, and investors have begun to show strong interest in NFT stocks.

NFT is a digital asset created using blockchain encryption technology, such as works of art, music or video, etc.

Each NFT has a unique digital signature to determine its unique attributes, making it difficult for NFTs to exchange with each other.

NFT provides a unique way for content creators to earn income by paying copyright fees or selling their artworks directly to consumers.

According to data provided by Forbes Advisor, since November 2017, nearly $174 million has been used for NFT transactions. On May 12, Eastern Time, eBay (EBAY.US) added NFT to its online shopping mall product list.

Funko (FNKO.US) and PLBY Group (PLBY.US) recently had the most popular NFT concept stocks, which stock is more attractive for investment?

Let's look at what Wall Street analysts think of these two stocks.

Funko is a pop culture consumer goods company whose products include plush and action toys, clothing, board games, and accessories.

Earlier this month, the company announced its first-quarter results. Revenue increased by 38% year-on-year to US$189.2 million, while adjusted EBITDA was US$29.8 million, compared with US$10.6 million in the same period last year.

In the 2021 fiscal year, Funko expects sales to grow by 33% to 38%, and the adjusted EBITDA margin is expected to be between 14% and 14.5%. The company expects adjusted diluted earnings per share to be between US$0.98 and US$1.12.

Last month, the company entered the NFT market by acquiring equity in TokenWave. TokenWave has developed TokenHead, a website and mobile application that displays and tracks about 10 million NFTs and has about 100,000 visits per day. It can be used on iOS and Android platforms.

This investment is expected to expand Funko's popular culture platform to include digital assets. The company expects to launch its first batch of NFTs in June this year, priced at $9.99. The company will sell its NFT on the WAX platform, a decentralized online payment platform using blockchain technology.

Funko's CEO Brian Mariotti believes that the profit margin of the NFT business is likely to be higher than that of other consumer goods businesses, but it is not expected that the profit margin will be materially affected in the next year or two.

He also believes that if NFT buyers have never purchased the company's physical products, they can start buying immediately, and vice versa, which will strengthen the company's diversified product advantages.

It is worth noting that the company's 2021 fiscal year performance forecast does not include the revenue obtained through the NFT business.

Last month, following Funko's investment in TokenWave, JPMorgan Chase analyst Tami Zakaria raised his target price from US$20 to US$25 and reiterated his "hold" rating on the stock.

Zakaria believes that the stock's current risk-reward ratio is attractive, and expects that the NFT business may contribute to the growth of fiscal 2021 and fiscal 2022 performance. The consensus rating of other Wall Street analysts is "moderate-buy", with an average target price of $23.13.

PLBY Group is a company integrating leisure, life, and entertainment businesses, and is also the owner of the Playboy brand.

On May 12, Eastern Time, the company announced its first-quarter financial report. The data showed that revenue was 42.7 million U.S. dollars, a year-on-year increase of 34%.

The main reason for the increase in revenue was that direct-to-consumer revenue increased by 114% year-on-year. However, the company's net loss in the first quarter expanded to 5 million U.S. dollars, compared with a loss of 2.4 million U.S. dollars in the same period last year, mainly due to the cost of completing the company's acquisition.

PLBY CEO Ben Kohn said, "The performance of our first NFT art exhibition recently made us very excited. It symbolizes that we can create imaginative products based on our iconic flagship brand and rich original content. product experience".

Kohn added: "We are in the early stages of development of intellectual property rights and global fan base accumulation. We have huge development potential. At present, we are still focusing on finding investment opportunities to drive outstanding long-term growth and bring substantial growth to shareholders. Long-term value."

Last month, PLBY announced a partnership with Nifty Gateway. Nifty Gateway is a comprehensive platform under Gemini that can be used to buy, sell and store collectibles and digital art.

This partnership will promote the use of blockchain technology for a series of digital art collaborations between the Playboy brand on the Nifty Gateway platform. Kohn said that the Playboy-themed NFT can effectively cross-sell the company's physical products with digital art.

This partnership has helped Playboy and the artist Slimesunday collaborate to launch digital artwork, which was launched earlier this month.

PLBY stated on its earnings conference call that this artwork generated approximately $1 million in sales within 24 hours, including a single item that sold for $250,000. The partnership will also promote a collaboration between PLBY and digital artist Blake Kathryn in June to host an NFT curatorial event with the theme of Pride.

Canaccord Genuity analyst Austin Moldow raised the target price of PLBY from $28 to $52 and reiterated its "buy" rating.

Moldow mentioned in a research report to investors, “The company has achieved a long-term strategy in NFT and other emerging technologies such as blockchain, VR and AR, and is committed to the integration of physical and digital technologies. We believe that PLBY seems to be developing an NFT sales strategy, which may create new works based on its intellectual property rights, which will create a "never-ending" product supply chain."

The consensus rating of other Wall Street analysts is "Strong Buy", with an average target price of $45.67.

Both PLBY and Funko monetized their consumer products into the NFT field through blockchain encryption technology. In the process, they created cross-selling opportunities and continuously promoted the diversified development of products.

PLBY and Funko are also in the early stages of development, but through comparison, it can be seen that analysts seem to be more optimistic about PLBY.

First of all, from the upside potential given by analysts, PLBY seems to be a better choice. Secondly, compared to Funko, which has just completed the acquisition, the certainty of PLBY, which has already launched NFT works and received high praise, seems to be greater, and PLBY's brand effect and artist reserve seem to have the same advantages.

Comments

Why has international oil(USO) prices plummeted?

As OPEC and Russia failed in negotiations and could not reach an agreement to reduce production, Saudi Arabia issued a comprehensive production increase announcement. Russia followed Saudi Arabia to increase production. Due to the sharp increase in oil supply, international oil prices plummeted, and US stocks were affected by the spread of the epidemic, and international oil prices The plunge, the U.S. stock market plummeted, triggering multiple fuses. S&P500 Index Oil is a commodity whose price is affected by supply and demand. When oil production increases, supply increases, prices fall, and at the same time affected by the epidemic, demand decreases, and prices also fall. Oil supply increases and demand decreases, which is the main cause of the plunge in international oil prices. In terms of oil supply, since the United States developed shale oil, US oil production has become the world's largest. The production cost of shale oil is more than US $ 40, which is the ...

Gold(GLD) and crude oil(USO) plunge and lose their value?

Recently, the stock market has experienced ups and downs. During the financial crisis, gold, bonds, and even bitcoin, which have been regarded as value-preserving, have depreciated. Can't help but make many investors confused, why is it like this? gold Gold On February 24, due to the stock market crash, a large number of institutions sold gold to make up for the losses of these institutions in the stock market and to increase margin. The price of gold resumed its rise in early March and then fell to a lower level again on March 9. Many investors were confused. Should n’t gold be a hedge? Should n’t gold and the stock market rise in the opposite direction? All of this has nothing to do with the shortage of funds in the repo market. The Fed ’s bailout ceiling is far from enough, and then the Fed issued an emergency statement on March 12. "Starting on March 12, 500 billion bailouts will be provided. Tomorrow the Fed will provide another 500 billion three-month repurchase...

Will the Great Depression make a comeback?

the Great Depression On March 21, 2020, the United States already had initial unemployment data. Exceeding market expectations, the number of applicants reached 3.28 million, a record high. The current unemployment situation in the United States. Before March 7, employment in the United States was not affected by the epidemic. In the week of March 7, the number of people applying for unemployment benefits for the first time in the United States was 211,000, a decrease of 4,000 compared to the previous week. It is still healthy. This shows that the United States is in a good employment track range. The actual data began to fluctuate, that is, the data for the week of March 14, the number of people applying for relief reached 282,000, a slight increase. On March 21, the number of people applying for unemployment benefits soared to a record high this week. 1.7 million people have far exceeded expectations, and market expectations are about 1.5 to 1.7 million people. It can be said...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

How to judge the diffusive horn pattern ?

As an investment trader, you must understand the use of chart technology analysis to determine the position of market transactions. Now let's talk about a common pattern in chart technical analysis, which is the diffuse speaker pattern. Diffusion horn patterns are different from trend patterns and horizontal patterns. Diffusion horn patterns are more difficult to judge than trend patterns and horizontal patterns, and often cause losses to investment traders. So, how do investment traders judge the spreading horn pattern and make favorable investment transactions? S&P500 Index The price trend of the diffusive horn pattern. When the price rises over some time, then the price falls, and falls below the recent low, then rises, and rises through the last high. It keeps expanding in two directions. If we connect the high point and the low point with straight lines, respectively, we can show a horn shape, so it is called a diffuse horn shape. Because of this, some i...

The era of negative US interest rates coming?

Recently, the US Federal Reserve suddenly cut interest rates and US stocks fell sharply. Most investors believe that the ten-year bull market for US stocks has ended. In terms of the US dollar index, after a period of decline, the US dollar index rebounded sharply, indicating that risk aversion was high, and market funds were flowing to the US dollar to hedge. The Fed ’s interest rate cuts have not saved the US stock market. The Fed ’s interest rates are now very low. If the Fed continues to cut interest rates in the future, the United States will soon enter the era of negative interest rates. Take Europe and Japan as examples. Negative interest rates have not restored the country ’s economy. The future economic situation of the United States is not optimistic. The reason for the negative interest rate is that the investment must be profitable, otherwise, it will not be invested. If the profit is low or loss, the investor will directly deposit the profit to the bank. When socia...

How to judge the market entry signal?

buy sell Most people lose money when investing in stocks. One of the biggest reasons is that they buy stocks at the wrong time. Why did they buy the stock at the wrong time? Facts have proved that many people do not know that stocks only rise 1/4 times, and that is the easiest time to make money. And in another 3/4 of the time, making money is difficult, and losing money is easier. Today, I will share how to choose the right time to buy stocks. I hope you can see the final result because, in the end, I will share with you how to use simple technical indicators to help us find the exact input time. First of all, everyone must know a concept, whether it is a stock market or a stock, there are four stages. Let us take the stock market as an example. The first stage is called the "next stage". At this time, the market has just experienced a sharp decline, and most investors in the market are not interested in the stock market, because their memories are still stuck in t...

Safe-haven assets（GLD） are flowing into the market?

On March 9, 2020, the US Dow Jones Index plunged more than 2,000 points, the U.S. stock market crashed, the investment market was full of fear, and market funds flowed into those safe-haven assets? With the spread of the epidemic, the market's risk aversion has continued to increase, and the stock market has continued to fall. As an investor, to reduce investment risks, you must buy safe-haven assets, reduce the purchase or sale of assets in the stock market, and avoid a sharp decline in the stock market, which will cause serious losses. When market risks continue to increase, investors will continue to buy safe-haven assets. Investors should pay attention to the following several safe-haven assets and use them as safe-havens. Dow Jones Index The first safe-haven asset is gold. Gold（GLD）, as a traditional anti-inflation commodity, has always been the preferred safe-haven asset for investors. GLD The second safe-haven asset is the Japanese yen. Because the Japanese y...

Many companies will China close in 2020?

Starting in March, all walks of life in China began to resume work. People stayed at home for more than two months. Many people's moods changed from tension to leisure, and now they are anxious. It's not just the bosses who are anxious. Many employees find that their rents and mortgages are still being paid, the holidays are extended, they can't go to work, and their salaries aren't. Whenever there is no money it is a big problem. More than 700 companies closed down in February, but getting fewer wages is also better than the company suddenly closing down. In February, more than 700 companies have closed down, and this number should be exceeded. Statistics show that more than 55% of catering businesses in China have resumed work, but compared to the same period last year, affected by the epidemic, 78% of catering companies have lost more than 100% of their operating income, and another 16% of them have lost over 70%. This year's sudden outbreak, the impact...

What is the average cost method?

Due to the recent plunge in the global market, I noticed that some people came out to promote an investment method called the fool-style stock disaster investment method. The thinking behind it is similar to other lazy investment methods, or monthly stocks/funds, just to change the saying, I will dismantle the problems behind you one by one. Let you see the risks you need to bear, first look at the logic behind this method. Its approach is this when the market drops 10%, you invest 20% of the funds to buy stock market ETFs when the market drops 20%, you invest another 20% when the market drops 30%, you invest another 20%, And so on. Until the market drops by 50%, you will put all the funds into the market, and when your average cost is equal to the market drops by 30%, you will buy all the funds in the market ETF (that is, All in). It is a kind of average cost method. The principle of this method is that, first, he believes that the maximum decline in the market is about 50%. A...

FinanceLinkway

Search This Blog