How does Google’s hardware event, Australia’s clean energy uncertainty and Amazon’s industry takeovers affect you as an individual and an investor? (Reading time 3:26 mins)
This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.
1. Google leads the pack in AI
Google kicked off its hardware event last week with an impressive lineup of new products. Wireless headphones translating foreign languages in real-time deserve an honorary mention.
The various releases highlight the search giant’s push to integrate AI into the heart of every product.
This couldn’t have been clearer in CEO Sundar Pichai’s keynote address as he stood in front of a large screen that read ‘AI + software + hardware’ – the order of words clearly depicting where the company is heading.
What does this mean if you’re invested in tech companies?
Software and hardware are developing rapidly as technology companies strive to get more people to spend more time using their products.
It’s not just about selling the hardware or software to make money in the short term. It is about enlarging their ecosystem of users, which is even more valuable as they can continue to sell services and products to them long term.
Tech winners will be companies with deep pockets who can keep spending billions on research and development while moving ahead quickly.
What does this mean if you’ve invested money with AtlasTrend?
AtlasTrend’s Big Data Big Fund invests in Alphabet (Google’s parent company).
In 2016, Alphabet spent US$13.9 billion on research and development (that’s more than all Australian businesses combined) allowing it to stay ahead of the competition in many areas. It still managed to be highly profitable and made US$19.5 billion in net profit in 2016.
With deep pockets and an innovation-driven culture, we believe Alphabet is set to be a technology leader for at least the next decade.
2. Doubts over Australia’s clean energy target
Australia’s energy crisis appears to still be in shambles with economic reformers urging the government to pare back its Paris agreement commitments.
While the country’s clean energy future is in doubt and blackouts are looming, Tony Abbott took to the stage in London where he suggested the science of climate change was not settled.
What does this mean if you’re invested in energy companies?
Investors in Australian fossil fuel energy companies might breathe a short sign of relief as subsidies for competing renewable energy might not eventuate.
However, the move towards renewables appears to be gaining huge momentum, driven by the continuing drop in renewable energy prices.
Unless traditional energy companies start embracing renewable energy (irrespective of any clean energy targets), they might find themselves priced out of the market sooner rather than later.
What does this mean if you’ve invested money with AtlasTrend?
We are actively working on a Trend that will invest in clean disruption around the world including renewable energy.
We believe renewable energy (such as solar) plus technologies which improve battery storage efficiency will fundamentally and positively change the way society generates, stores and uses energy in the 21st century.
We think this will be one of the most thriving investment trends over the next decade.
3. Amazon takes on more industries
Amazon has already sent the retail and grocery sectors into panic and now has its sights set on advertising, shipping and pharmaceuticals.
They’re already making the moves on an in-house delivery network to cut costs and rely less on third-party vendors.
While the advertising and pharmaceutical side is more speculative for the time being, there’s no question Amazon could dominate these markets.
What does this mean if you’re invested in Amazon’s competitors?
Amazon has a huge advantage over existing players in other industries – it has immense data on hundreds of millions of consumers including how, what and when they buy.
This data allows Amazon to setup and compete strongly in any new industry it enters as it has proven in the past in multiple retail industries.
Investors in industries that compete with Amazon need to be aware of how Amazon can come in to eat their breakfast, lunch and dinner.
What does this mean if you’ve invested money with AtlasTrend?
AtlasTrend’s Online Shopping Spree, and Big Data Big funds all own shares in Amazon.
We own it across 3 funds because Amazon drives or materially impacts so many 21st century trends.
Its expansion into other industries is great for the company since Amazon effectively owns the customer relationship, it can continue to sell those customers goods and services across multiple industries.
For more about the types of managed funds AtlasTrend provides, click here. Sign up for full details on what the Trends invest in, and access actionable investing insights.
