The legal case against Facebook Inc. (FB) is gaining steam, and demonstrating just what a huge deal, and an opportunity, the social media sector is right now.
At this point, we now have the federal government and 46 states seeking to have the world’s most successful social network break itself up.
The idea is to have the Silicon Valley giant with 2.3 billion active monthly users divest itself of the wildly popular apps Instagram and WhatsApp.
To make that happen, though, the Federal Trade Commission (FTC) and the states must meet the high standard of clearly proving that Facebook acted illegally.
Here’s the thing, though; As tech investors, we don’t have to decide who’s right or wrong, or whether that will happen or not.
Our mission is to profit from the social media market that is worth at least $100 billion.
So far, we’ve talked often about the importance of the cloud, big data, e-commerce, and artificial intelligence.
But there’s another very profitable field largely flying under the radar.
And it’s set to notch a historic milestone that’s going to be a massive win for the digital economy, and for investors like us.
Here’s the thing. When most folks think of advertising, the first idea that pops into their heads is Madison Avenue that has dominated TV, radio, and print for decades.
But a new study shows digital ads – those served up online or through handhelds – are about to surpass “old school” marketing.
We’re talking $110 billion in digital ads just for 2020 alone. That’s 51% of the ad industry’s forecast sales of $214.6 billion.
With people spending more time at home, subscriber totals for Disney+, Netflix, and Roku have ballooned by the 10’s of millions, and 80% of U.S. households now have some way to stream videos.
The quality and amount of content is incredible, but there’s something that’s been lacking with the services listed above – the ability to just sit down and channel surf live TV, have live news updates running in the background, and watch your favorite sports as they are being played.
Thankfully, products like Alphabet Inc. (NASDAQ: GOOGL)’s YouTube TV, DISH Network Corp. (NASDAQ: DISH)’s SlingTV, and Walt Disney Co. (NYSE: DIS)’s Hulu+ Live TV have all helped us unplug from the traditional cable companies that charge an arm for a leg for a bunch of extra channels we don’t want or need.
Streaming services have experienced rapid growth in adoption over the last five years. And while almost 80% of U.S. households have some form of device for streaming video and subscribe to a streaming service, many of them still pay for access to cable.
A big part of this is that sports and news content have been a key driver for cable operators. Most streaming subscription services have chosen to focus only on entertainment offerings.
While traditional TV has suffered at the hands of newer services like Netflix, Hulu, and HBO, some people will never stop watching TV in that fashion.
Sometimes, you just want to sit down and channel surf live TV, turn on the news, or watch sports.
Just like 10 years ago, when I would come home from work and flip on the TV, I do the same today. But I don’t need a cable subscription to watch traditional TV. Many still want this, which is why we’re seeing services pop up from many big companies replicating traditional TV.
Alphabet Inc. (GOOGL) has YouTube TV, DISH Network Corp. (DISH) has SlingTV, and Walt Disney Co. (DIS) has Hulu+ Live TV. This can all happen without plugging in a bulky cable box. All you need is an Internet connection. The best part is you don’t need to be tied to the TV. You can watch on your tablet and phone, on the go, or at home.
COVID-19 has proven what I’ve been seeing for the past decade: the entire economy is the tech economy. You may not think that retailers like Walmart Inc. (WMT) and Target Inc. (TGT) are tech companies, but they have been boosting their revenue this past quarter on the back of multiplying e-commerce sales. It just goes to show that not only do leading tech innovators drive growth in the market, but any company, no matter what they do, can give themselves a much-needed edge by keeping up with the times. Add in the fact that growth investors, largely fueled by tech, have made more money in ten years than value investors have in thirty, and its plain to see that the road to wealth is paved with tech. There are plenty of opportunities approaching in the era of all things digital. Click to watch!
I’m so excited to come to you with a special video message. As a board member of the National Institute for Cannabis Investors, I admittedly receive a ton of privileges. But I don’t want you to think I’m keeping anything from you; I want to share all the research, invitations, and content. That’s where your free spot to register for the 2020 American Cannabis Summit on February 25 comes in. I don’t want to say too much and give anything away, so just click here to reserve your spot.
Roku Inc. (ROKU) has been having some good days in early November, and it’s perfectly positioned to capitalize on the rise of streaming; but its future is not necessarily certain. The streaming platform has had to deal with some price instability after its quick rise, and now the question of whether its freemium pricing model can meet consumer demand is surfacing. Meanwhile, the digital streaming market is full of tough competitors – and there are two more prominent than ever, ready to hash it out. This is one battle you need to watch closely, as the winner could spell out huge profits for whomever latches on now. Click here to watch.
As fears of overexposure to the China trade dispute in the microchip and semiconductor sectors are being proven wrong, the market rallies. Investors are realizing that the banned Chinese company, Huawei, is not as tightly woven into those sectors as it had feared, and strong demand for chips will be driven on by the pending rollout of 5G technology. This means that those entire sectors are currently undervalued. As the new 5G upgrade cycle promises to keep demand high for years to come, there’s one company in this sector whose sales are up 24% since the market rally, and whose earnings are doubling nearly every three years – meaning huge growth potential if you latch on now. Click here to watch.
If all you did was look at the headlines, you’d think this is a terrible time to invest in initial public offerings (IPOs).
Just take a look at this recent riff from Forbes, “Why WeWork Won’t Work! – Hello Neumann!,” or Bloomberg’s announcement, “Endeavor Makes Last-Minute Call to Yank IPO as Conditions Sour.” Big time financial news is clearly in love with the idea that anyone getting hyped up for a big name IPO is just setting themselves up for disappointment.
On paper, that narrative makes sense.
WeWork’s attempt at an IPO saw an optimistic estimated valuation of $47 billion falling to less than $14 billion before the offering was abandoned entirely. The loss was so devastating that the CEO resigned over it.
Not only that, but Peloton Interactive Inc. (PTON) dropped 11.2% in its first day of trading on Sept. 26, a decline which, according to The Wall Street Journal, directly influenced the decision of talent firm, The Endeavor Group, to also put off its own new stock debut out of fear of poor market conditions.
But what the media isn’t telling you is that tech and life sciences firms are still IPO leaders. That segment of the market is actually doing quite well overall.
While traditional TV has suffered at the hands of newer services like Netflix, Hulu, and HBO, some people will never stop watching TV in that fashion.
