China president Xi Jinping recently announced plans of increasing research and development of blockchain technology. The China government acknowledged that the application of blockchain technology will play a significant role in technological revolution.
Xi, in particular, said that his party must focus on bumping up investments in blockchain technology. At the same time, they would focus on other technologies that boost blockchain and industrial innovation. Following Xi’s remarks, blockchain technology-related companies saw their shares move north. After all, more capital will be funneled into them following the official endorsement of blockchain technology.
Needless to say, Chinese blockchain companies in particular witnessed massive boost in their share prices. Notable among them is Chinese optical product-maker Fujian Forecam Optics, whose shares climbed 15.8% in the last trading session.
To top it, blockchain-related stocks, including bitcoin, saw their shares scale north. After all, blockchain is the technology required to build digital asset (currency), such as bitcoin. And let’s admit that without blockchain, bitcoin won’t have any value because there won’t be any secured method of transacting in it.
By the way, Bitcoin’s (BTC) recent 30% jump to a five-week high from $7,393 to $10,350 over a 2-day period has helped its prices climb above its 200-day moving average (MA), indicating bullish trends in the near future.
Wall Street bigwigs, in the meantime, are showing keen interest in cryptocurrencies and blockchain technology. And this bullish approach toward bitcoin is surely driving digital assets. For instance, JPMorgan Chase & Co. (JPM - Free Report) has introduced JPM Coin, which will be helpful in handling digital settlements. And how can we forget that telecommunication, media, and technology service provider AT&T Inc. (T - Free Report) has also begun accepting crypto payments via a partnership with BitPay.
Bitcoin Stocks to Keep an Eye On
If you are looking to make money from the rising bitcoin trend and the China government’s push for blockchain technology adoption, you may take a look at companies that are making use of bitcoin and technologies that support it, including blockchain.
Square, Inc. (SQ - Free Report) , which provides payment and point-of-sale solutions, is an impressive bitcoin-related stock. The mobile payment company is now allowing users to buy and sell cryptocurrency through its Square app. Square’s comprehensive commerce ecosystem and accelerated business growth remain major positives.
Square flaunts a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its current-year earnings has moved 2.7% north over the past 60 days. The company’s expected earnings growth for the current year is 63.8%, higher than the Internet - Software industry’s estimated rise rally of 8.4%. The stock has outdone the broader industry over a two-year period (+75.9% vs +15.4%). You can see the complete list of today’s Zacks #1 Rank stocks here.
PayPal Holdings, Inc. (PYPL - Free Report) is also one bitcoin-related stock that should be on your radar. The leader in digital payment processes sealed a deal with three major bitcoin payment processors, BitPay, GoCoin and Coinbase, to help PayPal merchants accept bitcoin as a mode of payment.
PayPal’s two-sided platform, safety and simplicity of transactions, opportunities in the fast-growing mobile space and strategic partnerships are major positives.
PayPal Holdings possesses a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-quarter earnings has advanced 2.5% over the past 60 days. The company’s expected earnings growth for the current year is 25.6%, higher than the Internet - Software industry’s estimated rally of 8.4%. The stock has surpassed the broader industry so far this year (+27.5% vs +14.2%).
Microsoft Corporation (MSFT - Free Report) is facing stiff competition from Amazon.com, Inc. (AMZN - Free Report) in the cloud computing space. As a result, the tech behemoth is seeking to build a ‘Blockchain as a Service’ on its Azure cloud.
While Microsoft has a dominant position in the desktop PC market, its new subscription model and promising new products will continue to generate sizeable cash flows.
Microsoft has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has moved up 2.1% over the past 60 days. The company’s expected earnings growth for the current year is 12.2%, in contrast to the Computer - Software industry’s projected decline of 0.7%. The stock has outshined the broader industry on a year-to-date basis (+42.8% vs +31.3%).
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