Latest from the Quantamize Blog

The Best Stocks to Take Advantage of Emerging Blockchain Technology

Nov 29, 2018


  • Today, we highlight some of the best stocks to be exposed to in order to take advantage of emerging blockchain technology applications.  
    • A report published yesterday by fintech executive Monica Eaton-Cardone projects a 29-fold increase in the market value of global retail blockchain applications, forecasting an increase in value from USD$80mm today to more than USD$2.3bn by 2023. Eaton-Cardone is the current Chief Information Officer of Global Risk Technologies and a former Chief Operating Officer for Chargebacks911.  
    • The report attributes five retail-specific applications that will drive blockchain technology’s growth, including supply chain management, inventory management, authenticity verification, auto-renewal and subscription services, and customer data and loyalty reward programs.  
  • Amazon (AMZN) may be one of the best opportunities for investors seeking exposure to the growth potential of blockchain technology. On Wednesday, Amazon unveiled its Amazon Managed Blockchain platform, a service that enables clients to develop their own blockchain networks based on either Hyperledger Fabric or Ethereum protocols without incurring the costs of creating their own platform.  
    • Amazon Web Services, the tech giant’s cloud computing service that leads the world in cloud computing market share, further heightens the potential of Amazon's blockchain ventures.  
  • International Business Machines Corporation (IBM) is another stock that is capitalizing on emerging blockchain technology. IBM has been applying for and snatching up blockchain patents for the last 5 years. These patents address a range of applications including food-tracking, Internet of Things (IoT) applications, security solutions, and more.  
    • IBM is already beginning to enjoy the fruits of its early labor in blockchain technology: in September 2018, Walmart announced that it would begin using an IBM-powered blockchain platform to track leafy green produce from the farm to its stores; in August 2018, global freight company Maersk announced the launch of an IBM-powered blockchain shipping solution, TradeLens, to be used by 94 organizations; and just yesterday, CLS Group, the bank-owned currency trading utility, announced the launch of an IBM-blockchain-based payment netting service to be used by giants like Goldman Sachs and Morgan Stanley.  
  • Nasdaq (NDAQ), the world’s second-largest stock exchange, is another company expanding into blockchain technology. In 2015, Nasdaq announced that it conducted its first private securities transaction on a live blockchain.  In the past, Nasdaq experimented with blockchain solutions in proxy voting through its Nasdaq eVoting solution, and in June 2018, Nasdaq announced that its clearing arm successfully completed a proof-of-concept test of a blockchain platform meant to facilitate the transfer of collateral to central counterparties when trading securities.  
  • Overstock (OSTK), a large online retailer, is a company going all in on blockchain technology. Last week, Overstock CEO Patrick Byrne revealed that Overstock plans for the sale of its retail business segment to be completed by early next year. The sale of Overstock’s retail business is with the intention of the company focusing more on blockchain technology developments.  
    • In 2014, Overstock launched Medici Ventures, its blockchain-focused subsidiary. Since its launch, the subsidiary has embarked on a variety of blockchain ventures, including tZero, a blockchain technology effort to improve the inefficiencies of Wall Street and traditional institutional market structures.  
  • Of the four stocks highlighted that are poised to take advantage of emerging blockchain technology, two are “Top Buys” in our Global Top Stock Ideas. 
    • Amazon is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.  
    • IBM is rated “Top Buy” in our US Information Technology Global Top Stock Ideas.