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Amazon and Google Do One Thing Bigger Than Everyone Else Inc., and Alphabet Inc. R&D

While Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOGL) are two of the five mega cap technology firms leading the future of innovation, these two have one thing in common that the others do not. They spend more on research and development than any other firms in any other industries in the world.

Let's start with a chart of and the company's research and development rolled into trailing twelve month periods, through time. research and development now stands at a staggering $13.3 billion in the last year. That's up 33% from $10 billion last year and about 85% from $7.1 billion two-years ago. Now let's turn to its peer.

We'll look at the same chart, but this time for Alphabet.

Alphabet's research and development over the trailing-twelve-months stands at $12.9 billion, up from $10.5 billion one-year ago and $7.6 billion two-years ago.

While these two charts are pretty, they need context, and it's the context that reveals the great similarity

If we plot research and development expense (TTM) for all companies in all sectors over $75 billion in market cap and then rank them on the y-axis, we end up with this startling image.

And now we see the payoff. and Alphabet spend more in research and development than any other companies spanning all other industries. We can see Microsoft, Intel and Apple for the tech giants, and then we can see the Johnson & Johnson as the first non-technology name that makes it onto the chart.

When it comes down to it, and Alphabet spend a breathtaking amount on research and development and it's these two firms that will likely lead the technology revolution forward, monetizing that expense through innovation.

We know that the mega caps will innovate, but it's the smaller companies that investors look for. At CML we identify the revolutionary thematic transformations that are coming and then the companies that will benefit most from them to find the "next Amazon" or the "next Google." Twitter is one of those precious few companies. Our research sits side-by-side with Goldman Sachs, Morgan Stanley and the rest on professional terminals, but we are the anti-institution. Our purpose is to break the information monopoly held by the top .1%.

Each company in our 'Top Picks' is the single winner in an exploding thematic shift like artificial intelligence, Internet of Things, drones, biotech and more. In fact, here is just one of the trends that will radically affect the future that we are ahead of:

Virtual reality is one of the fundamental shifts coming in the very near future that will change how we live, work, and play. This is a technology whose consumer base looks increasingly like all of humanity. This is the opportunity so many investors say they welcome - that say they search for. The opportunity to find the "Next Apple," or the "next Google." Friends, it's coming right now, and it lies in the depths of technology's core. It's not artificial intelligence, it's artificial super intelligence and there is one company that will rule all of it.

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