FundamentalsThis was originally published on news.cmlviz.com
Our purpose is to provide institutional research to all investors and break the information monopoly held by the top .1%. Here we go:
There are four elite technology companies that are stepping all over each other in every market imaginable from virtual reality, online video, the cloud, mobile pay, social media, smartphones and even driverless cars. Here are just a few of the charts that define these companies and trends.
We're going to go through four revenue charts, and we'll see exactly why the stock market has fallen in love with Facebook and Amazon, and fallen out of love with Apple.
To put the entirety of large cap technology in perspective, here is a comparison of all mega tech by revenue:
We can also lok at revenue per employee and we are quickly reminded that even though Apple has by far the most employees, it is untouchable with respect to efficency:
REVENUE per EMPLOYEE ($M)
RESEARCH AND DEVELOPEMENT
One thing each of these giants have in common is a rip roaring chase to innovation. Here are some R&D charts to ponder:
R&D MEGA CAP TECH
Yes, Amazon is at the top.
And then we can look at R&D expense per $1 of operating expense:
R&D per $1 OPEX MEGA CAP TECH
And now scaled, Facebook is at the top.
The market segments each of these firms are pursuing define the transformation that is coming from technology. Here are just a few:
SELF DRIVING CARS
Source: BUSINESS INSIDER
Source: BUSINESS INSIDER
We can add Tesla Motors (NASDAQ:TSLA) as a leader here as well.
For streaming video on demand (SVOD), we can add Netflix (NASDAQ:NFLX) as the worldwide leader, as of today.
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The fact that each of these mega caps are pouncing on each other’s businesses means we're in a totally different realm of risk than we have ever seen before. What appears to be safe, is not.
For example, ad blocking could cut Facebook and Google's revenue in half. A successful Amazon smartphone or the continued success by Google's Android could crush Apple's iPhone profit center. The Amazon video service combined with Amazon Prime video could destroy YouTube.
Google's explosive growth in e-commerce could cut Amazon's world dominating aspirations out at the knees.
We can continue, on and on. But it turns out there is a way to side step this mess, while investing in the future.
There's a philosophy we follow, and it reads like this:
It turns out there are two technology gems that will power the self-driving revolution, and they will win regardless of the success of Tesla (NASDAQ:TSLA) versus Apple versus Google. There is a tech gem that will power the virtual reality and cloud computing revolutions and it won't matter which VR hardware wins or which cloud service wins -- each VR headset will be powered by one company, and each cloud will be powered by these chips.
There is even a marvel technology company that will power the online video advertising wars -- and it won't matter if Facebook, YouTube or Amazon wins.
WHY THIS MATTERS
This is just the surface analysis. There's so much going on with technology it's impossible to cover in one report. But, to take it a step further and to actually find the 'next Apple' or 'next FANG stock' we have to get ahead of the curve. This is what CML Pro does. Our research sits side-by-side with Goldman Sachs, Morgan Stanley and the rest on professional terminals, but we are the anti-institution and break the information monopoly that the top .1% have.
Each company in our 'Top Picks' is the single winner in an exploding thematic shift like self-driving cars, artificial intelligence, Internet of Things, drones, biotech and more. In fact, here are just two of the trends that will radically affect the future that we are ahead of:
That chart plots the growth in 4G usage worldwide and how it will grow from 330 million people today to nearly 2 billion in five years. This is the lifeblood fueling every IoT and mobile device on the planet and CML Pro has named the single winner that will power this transformation. Then there's cyber security:
Market correction or not, recession or not, the growth in this area is a near certainty, even if projections come down, this is happening. CML Pro has named the single best cyber security stock to benefit from this theme.
These are just two of the themes we have identified and this is just one of the fantastic reports CML Pro members get along with all the visual tools, the precious few thematic top picks for 2016, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.
Thanks for reading, friends.