Tech products can consume a lot of our time, although most are surprised at how dominate these companies are on the world share markets. AtlasTrend Co-founder, Kevin Hua looks at how to potentially profit from these companies and what separates today’s leaders from the famous “tech wreck” of early 2000.

 

The following 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.

 

With the rapidly growing size of the U.S. tech companies, investors are reminded of the tech wreck of early 2000, the “new economy” and how that famously crashed and burned. We’ve seen a lot of tech companies report in the U.S., some large share price movements and the U.S. economy being driven by even more tech leaders. Kevin Hua walks us through the results and whether another tech crash is looming.

CLICK BELOW to listen to the interview (listening time is 6:01 minutes)

Key points:

 

Are we concerned of another tech wreck again?

  • No, we don’t believe so. Many tech companies that crashed in the 2000s were pre revenue and profitability
  • Fast forward 2017, tech sector matured significantly, with tech leaders like Apple, Amazon, Facebook and Google revolutionizing the way we live, created sustainable and profitable businesses

 

What characteristics should investors look for in a tech leader?

  • At AtlasTrend, we start by selecting long term structural trends like big data or online shopping
  • Within the themes, we select long term winners and take the most advantage of these trends
  • 4 key characteristics of long term winners:
  • Highly scaleable (e.g. Google search)
  • Ability to create network effect through userbase (e.g. Facebook’s 2.1 million users)
  • Ability to leverage core business to build adjacent complementary businesses (e.g. Amazon’s AWS business)
  • Strong balance sheet to fuel innovation & build new businesses (e.g. Apple’s US$153 billion net cash)

 

Key takeaway from U.S. tech companies this reporting season

  • Whilst growth in technology is structural, not all are businesses are winning
  • The big are only getting stronger
  • Apple, Amazon, Facebook, Google and Alibaba are our picks for long term winners in technology

 

Listen to more interviews in this series:

The NBA’s Revenue Sharing Model

Alibaba: Deliver Anywhere in the World in 72 Hours – From When?

Why Investing in the Electric Vehicle Trend is not as Straight Forward as We All Think

Blockchain – The Opportunity Behind Bitcoin’s +1,500% Returns

The Rapid Marriage of Off-line and On-line Shopping from Amazon

Big Data: What, How and Where to Invest

Disney and Netflix are Parting Ways

Investment opportunities from the growth of Online Shopping

Listen to AtlasTrend’s June 2017 Global Markets, Trends and Performance Wrap Up

Nike Sprints Ahead with Amazon and Instagram

Amazon’s Tuition Costs US$13.7bn for a Food-ucation

Alibaba – The Growing Goliath

 

AtlasTrend manages global share funds investing in companies driving or benefiting from global themes such as big data and online shopping. For more insights on big data and online shopping as an investment trend and access to invest, sign up for a free 30 day trial.

Sign up to AtlasTrend for Free

 

About Kevin Hua

Kevin Hua is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kevin has over 19 years experience in financial markets including as Senior Portfolio Manager at Atrium Investment Management and Stark Investments.