Electronic communications infrastructure has been evolving ever since 1854 when an American banker named Cyrus West fields first thought of laying cables across the bottom of the Atlantic.
Now, that infrastructure is overdue for another breakthrough, and that breakthrough will create a massive profit opportunity for us.
Right now, there are 550,000 miles of cable running across the bottom of the ocean. They are enough to circle to the earth some 22 times, and they are absolutely brimming with web traffic. And they are not enough.
Today, some 3.7 billion people lack web access largely because they live in areas without ground infrastructure.
And that creates an opportunity for a savvy tech firm, ready to take the next step and provide satellite-based web services. They will face huge upside in a market valued at $123 billion
If you’re anything like me, odds are you couldn’t live without your smartphone. 81% of Americans own one, and for many of them, it’s the first piece of technology they use each day, and the last one each night.
That means that one particular small-cap tech leader I know has the power to reach four out of every five Americans every single day before they even get out of bed, brush their teeth, or eat breakfast.
And then, it has the chance to reach them again more times throughout the day than I can count, when they order food, check the weather, make a call, or even pay electronically at a store.
It’s no wonder, then, that I believe in an aggressive firm that has a stranglehold on what I call the App Economy, one on its way to being worth $407.31 billion in direct sales.
No wonder the market is so lucrative. There are nearly 2.9 billion smartphones in the world today.
And when you order up a new smartphone, you’ll see that it already comes with a handful of pre-loaded apps.
In most cases, your wireless provider has turned to this young company to help out.
This is a godsend for many of its clients.
Take ride-sharing firm Lyft Inc. (LYFT) for example. The company I have in mind helped Lyft add 1.9 million new customers through a geo-tracking app.
Now you know why the company recently reported earnings growth of a stunning 320%.
U.S.-Chinese tensions have run high ever since Trump laid out plans to counter unfair trade practices from China in 2016.
These tensions have rippled across almost every industry, but almost none as prevalent as in the telecom industry. This is a war against Chinese company Huawei, the world’s largest provider of telecommunications equipment and a leader in next-generation 5G technology.
Now, this is not exactly a new conflict with Huawei, but this could be the biggest one yet as one of the largest telecom equipment upgrades in history is taking place right now with 5G. Taking a step back, issues with Huawei go all the way back to 2003, when Cisco Systems Inc. (NASDAQ: CSCO) sued the company over theft of its technology. This was over several patents, which Cisco eventually won.
Here are just a few of the conflicts over the years:
2004: Huawei employee caught spying at a trade show.
2008: Leaked documents show Huawei secretly helped North Korea build its wireless network.
2009: Accused of corporate espionage after Huawei employee tries to extract data from an Indonesian mobile operator.
2012-2017: Huawei-installed technology at African Union headquarters was reportedly hacked for five years.
I think you get the picture. It’s no wonder the United States, and now the rest of the world, is looking to cut Huawei out of its telecom networks.
The United States officially banned Huawei when Trump signed an executive order in May 2019, and now this week, the United Kingdom has followed suit and banned Huawei from its 5G networks. On top of that, London is calling for the removal of all Huawei equipment by 2027. The United States and UK are not the only two countries that have banned Huawei either. Dozens of others have also done so, including Telecom Italia excluding Huawei from bidding on its 5G network project in Brazil.
But this isn’t just geopolitical hardball. It’s an opportunity for investors.
5G is one of the biggest tech investing opportunities you’ll ever see, and one of the leading companies is being barred from the biggest markets in the world.
Life has changed significantly in the face of the coronavirus pandemic, and the need to adapt has created a new normal.
For example, I can’t remember the last time I physically walked into a grocery store. Since the coronavirus, all I’ve been doing is loading up an app, selecting what I want, and waiting for my groceries to be delivered right to my front door at the time of my choosing.
And it’s not just online ordering that is expanding during this time.
From working at home through Zoom meetings to video conferences with your doctor, accessing a reliable technological infrastructure with high speeds to keep everyone connected is more important than ever.
There’s no doubt about it. We are living in a time of astounding financial opportunities.
Last year, was a great one year for the average retail investor, continuing the epic bull market that began in March 2009. As we move into 2020, it looks like it has the potential to keep right on going.
The terrific economy that we’ve had has helped propel stocks to record highs. Unemployment remains at 50-year lows as real income adjusted for inflation is moving up for millions of Americans.
In a case like this, you’d think all you have to do from here on out is just coast on autopilot. After all, the bellwether S&P 500 was up roughly 28.9% for the year as of the close on December 31.
But, as impressive as that sounds, you could do much better in 2020.
That’s because the S&P 500’s numbers for the year are nothing compared to the gains members of my monthly tech investing newsletter, the Nova-X Report, scored in 2019.
Indeed, our three best performers for the year more than doubled the S&P.
I’ve been writing about 5G high-speed cellular networks for more than five years now, and I couldn’t be more excited for what’s ahead in 2020.
Sure, 2019 saw a fair amount of progress in rolling out this advanced new platform. The nextgen mobile network is available in a few markets.
But we have a big catalyst coming in fall 2020. That’s when Apple Inc. (AAPL) unveils a new iPhone that’s 5G native.
Don’t underestimate the importance of this move. Apple sets the standard for the rest of the sector.
5G will be important for the entire tech ecosystem in the year ahead, and it’s just one major catalyst that investors should track. There are key developments with chip stocks and beaten-down software and cloud players that all matter to your portfolio.
Without semiconductors, there is no American economy. That’s because the American economy is driven by tech, and tech is driven by semiconductors. After an outstanding jobs report, big media is finally coming around to my point of view that tech investors have lot of upside ahead, and very few reasons to be worried. In times like these, it’s important to look for the pick-and-shovel plays that will be supporting development in as many breakout sectors as possible. The right semiconductor plays will be able to profit from the rollout of 5g wireless, along with advances such as cobots, robots that cooperate with humans in the workplace. With new breakouts just around the corner in 2020, you’re not going to want to miss the firms that will be holding it all together. Click here to watch.
It says to stay away from investing in Chinese stocks during our trade battles with that nation.
It’s a good thing that someone forgot to give Daniel Zhang a copy.
Here’s the thing. While tariffs the U.S. imposed on some Chinese goods have slowed factory output over there, that has hardly filtered down to the nation’s thriving Web sector.
And that’s where Zhang is really shining right now. He’s the CEO of Internet giant Alibaba Group Holding Ltd. (BABA) and just pulled off a remarkable coup.
In the first hour of the firm’s recent Single’s Day shopping bonanza Nov. 11, it brought in $13 billion. No, that’s not a misprint. Alibaba sold more goods in 60 minutes than hundreds of U.S. firms do in a year.
By contrast, that’s roughly 80% of what Amazon.com Inc. (AMZN) pulled in last quarter.