One of my favorite things about modern technology is something that tends to freak a lot of other people out.
The ability of tech companies to track our activity online isn’t something most consumers get excited about, but personally, I love it.
I know, I know, that probably sounds a bit naive, but everything these days is a give and take. I totally get that privacy is a growing concern in our increasingly Orwellian society, but the convenience factor is just too good for me to pass up.
Of course, I can only speak for myself here, and my situation might be somewhat unique. After all, it’s my job to stay on top of trends, and that’s exactly what activity tracking allows me to do.
The more I research an emerging technology or market opportunity, the more likely Google is to push related content to my daily feed. Having a personal curator like this is invaluable to me because it keeps me on top of trends and gives me a feel for the news cycle.
One thing I’ve learned about stock hype over the years is that once the mainstream media starts to pick up on a trend, that’s when the profit opportunities surrounding it really begin to take off.
It always starts with a few niche websites focused on a specific industry. These are the real experts who pave the way for the mainstream media who can’t help being fashionably late to the party.
What the major outlets lack in foresight, though, they certainly make up for in trendsetting. I always know a basket of stocks is primed to take off when I finally see a Fox News or CNN headline on something I’ve been talking about for months.
We recently saw this happen with Bitcoin and cryptocurrencies towards the back half of 2017 (we had been keying investors in to Bitcoin since 2014), but that’s just one instance. Our team of analysts has helped position investors before the mainstream media storm on everything from Tesla’s (NASDAQ: TSLA) IPO to the U.S. shale boom.
All this came front and center to my mind earlier this week after I saw a telling headline pop up in my Google feed. I took a screenshot from my phone, knowing I had to share it with you all today:
It’s always funny to see headlines like this after talking about a topic for months because it almost seems as if our ideas are being ripped off. The truth, though, is that there’s simply a delay in reporting on the mainstream media’s end.
This isn’t copying, in other words; it’s affirmation.
We’ve used a number of different phrases (“The Death of Cable,” “The Death of Comcast”) to describe this disruptive trend over the last two years, but it all comes down to the proliferation of 5G — the next major upgrade to mobile networks across the globe.
By now, the general concept of 5G is easy enough to understand. We’ve already gone through four other generations of mobile connectivity upgrades, the most recent, of course, being 4G, or 4G LTE.
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With every major upgrade, we’ve watched mobile internet service get significantly better. 2G gave us text and basic internet browsing. 3G gave us quicker video and music downloads. 4G gave us HD streaming and high-speed internet anytime at our fingertips.
In the same respect, 5G is going to drastically alter the landscape of mobile connectivity, but this time the effect will be even farther reaching. As implied in the CNBC headline above, 5G isn’t just going to improve mobile connectivity; it’s going to penetrate home internet as well.
The reason for this prediction is simple enough. 5G internet is going to be so fast that it will compete directly with the existing broadband cable industry. In fact, 5G will soon reach speeds on par with fiber-optic internet connections, blowing average household speeds out of the water.
Obviously this would be devastating for Comcast, Cox, Charter Communications, and any other cable provider that has spent the last several decades, and hundreds of billions of dollars, building out complicated and cost-intensive cable infrastructure.
If you need a comparison, just think about what happened with telephone infrastructure over the last 20 years. How many of you out there have one of these ugly things on your wall and no real use for it?
With the proliferation of 5G, you can bet your bottom dollar that the exact same thing is going to happen with coaxial cable outlets and everything they connect to.
While nothing is ever guaranteed in the market, what happens next is as close as you can get.
The same way AT&T (NYSE: T), the largest provider of fixed telephone services in the U.S., is STILL down from its 1999 peak, Comcast Corp. (NASDAQ: CMCSA) is poised to realize a similar fate (possibly even worse) over the next 10 to 20 years.
That’s good news on its own because basically everyone hates Comcast with a burning passion, but the real upside is in the technology and companies making this all possible.
Having been on top of the deployment of 5G for the last couple years, we’ve built a long list of opportunities in this arena, and at the end of the day it all boils down to infrastructure.
Who controls the towers? Who controls the networks? Who provides the small cells being deployed across the U.S. and abroad?
Answer those questions and you’re going to have a few killer stocks in mind. Fortunately for you, we’ve already done all the legwork, and all that information is just a click away.
Believe me when I say this isn’t an opportunity any serious investor wants to miss.
Until next time,
Jason Stutman
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