{"id":106786,"date":"2017-06-02T10:35:04","date_gmt":"2017-06-02T14:35:04","guid":{"rendered":"http:\/\/countingpips.com\/?p=106786"},"modified":"2017-06-02T07:35:57","modified_gmt":"2017-06-02T11:35:57","slug":"state-of-the-internet-in-3-charts","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/state-of-the-internet-in-3-charts\/","title":{"rendered":"\u201cState of the Internet\u201d in 3 Charts"},"content":{"rendered":"<div id=\"inves-1548223347\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 2, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_charts_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_charts_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_charts_feature-300x155.jpg 300w\" alt=\"\u201cState of the Internet\u201d in 3 Charts\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Must-read internet report just released.<\/li>\n<li>We\u2019ve distilled everything into the most important data sets.<\/li>\n<li>Data explosion is bigger than we ever thought possible.<\/li>\n<li>Also recommended: <a href=\"https:\/\/pro.agorafinancial.com\/m\/687174\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>When tech strikes back\u2026<\/strong><\/a><\/li>\n<\/ul>\n<hr \/>\n<p><i>Recode<\/i> dubbed it \u201cthe most anticipated slide deck of the year.\u201d And I agree.<\/p>\n<p>Venture capitalist Mary Meeker\u2019s annual <i>Internet Trends <\/i>report is an absolute must-read.<\/p>\n<p>From M&amp;A trends, to smartphone adoption, to cutting-edge innovations \u2014 the report is a comprehensive overview of all things tech.<\/p>\n<p>And since we\u2019re all about spotting big tech trends early here, I can\u2019t stress enough how much the report is worth our time and attention.<\/p>\n<p>There\u2019s something about seeing data represented visually that drives home the significance of trends more powerfully. More importantly, it highlights their investment potential.<\/p><div id=\"inves-1473671042\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>That said, this year\u2019s report is 355 slides in length \u2014 up from 213 last year. And I know that many people can\u2019t put in the time to fully digest the data.<\/p>\n<p>So it\u2019s become a tradition of ours to distill it down to the five or six most compelling and insightful charts each year.<\/p>\n<p>With that in mind, here\u2019s our annual \u201cCliffsNotes\u201d version of the report. (For those of you with ample free time and ambition, you can check out all the slides in their full glory <a href=\"http:\/\/www.kpcb.com\/internet-trends\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>here<\/strong><\/a>.)<\/p>\n<h2 class=\"subhead\">Tech Takeaway #1: It\u2019s STILL All About Mobile<\/h2>\n<p>As the old saying goes, \u201cAdvertising follows eyeballs.\u201d<\/p>\n<p>Granted, there\u2019s a lag between recognition and reallocation. But it\u2019s an inevitability. And after years of mobile dominance, ad spending on mobile devices finally caught up and crossed the 50% threshold in the United States.<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/mobileworld_chart.png\" alt=\"U.S. internet advertising spending by platform\" \/><\/p>\n<p>How should investors play this trend? By making sure you own a piece of the two tech giants that dominate the mobile <i>and<\/i> advertising worlds \u2014 Facebook (FB) and Alphabet (GOOG).<\/p>\n<p>As you can see in this chart \u2014 not from Meeker\u2019s report \u2014 both companies are essentially pure plays on ad spending.<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/titansadvertising_chart.png\" alt=\"Titans of Advertising\" \/><\/p>\n<p>What\u2019s that? The stocks are too pricey at $151 and $964 per share, respectively? Well, then consider some long-dated <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/05\/31\/investors-pull-off-impossible-apple-shares\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>call options<\/strong><\/a> instead.<\/p>\n<p>You\u2019ll benefit from reduced capital outlays (i.e., less risk) and increased upside potential. Win-win!<\/p>\n<h2 class=\"subhead\">Tech Takeaway #2: Data, Data Everywhere<\/h2>\n<p>Our \u201calways-on, always-connected\u201d society means there\u2019s an incredible amount of digital data being created.<\/p>\n<p>And there\u2019s no end in sight, either. Quite frankly, we\u2019re just getting started.<\/p>\n<p>Consider\u2026<\/p>\n<p>In the last two years, more data were created than the previous 5,000 years of humanity. Yet in 2017 alone, we will create even more data than that!<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/dataexplosion_chart.png\" alt=\"Worldwide data creation\" \/><\/p>\n<p>There are multiple ways to profit from this trend, including storage, security and business analytics.<\/p>\n<p>After all, all these data need to be stored, secured and analyzed. Otherwise, what\u2019s the point?<\/p>\n<p>Datacenter real estate investment trusts (REITs), like Digital Realty Trust Inc. (DLR), have been reliable, steady performers. That should continue, even as the storage market becomes commoditized.<\/p>\n<p>When it comes to security, I believe there\u2019s unbounded upside. Why?<\/p>\n<p>Because we\u2019ve criminally underinvested in cybersecurity. That means we have billions and billions in spending and years and years of catching up to do.<\/p>\n<p>At the same time, however, cybersecurity is a reactive, not proactive market. Criminals are always one step (or more) ahead of our defenses. Such a dynamic environment ensures we\u2019ll never get ahead of the problem. Especially when we consider that the cyberattack \u201csurface area\u201d keeps expanding at a dizzying pace.<\/p>\n<p>As I\u2019ve shared before, I don\u2019t believe a silver-bullet solution is possible. Therefore, the best investment approach is to own a dynamic basket of the leading and up-and-coming cybersecurity companies via the PureFunds ISE Cyber Security ETF (HACK).<\/p>\n<p>Add it all up and there\u2019s a good reason I labeled cybersecurity \u201cthe Trade of the Decade\u201d in the April 2016 <i>True Alpha<\/i> issue. Don\u2019t miss out! (For more information about joining <i>True Alpha \u2014 <\/i>including details regarding a potential data security nightmare \u2014 <a href=\"https:\/\/pro.agorafinancial.com\/m\/687174\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>click here<\/strong><\/a>.)<\/p>\n<h2 class=\"subhead\">Tech Takeaway #3: Mind the (Digital) Gap<\/h2>\n<p>This isn\u2019t ageist. It\u2019s reality\u2026<\/p>\n<p>A digital divide exists in terms of technology adoption.<\/p>\n<p>As we would expect, younger people embrace new technologies and platforms much more willingly than wiser people. (Notice I didn\u2019t say \u201colder people\u201d?)<\/p>\n<p>More specifically, daily time spent on mobile devices varies significantly based on age group. For instance, 18\u201324-year-olds spend 49% of their mobile device time on digital units, whereas the 65-plus group spends only 13%.<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/digitaldivide_chart.png\" alt=\"Daily time spent by media and age bracket\" \/><\/p>\n<p>The investment implications here aren\u2019t as obvious. That is, it\u2019s not about buying a particular stock or ETF. It\u2019s more about risk considerations.<\/p>\n<p>If there\u2019s a hyped-up technology company promising to revolutionize living for the baby boomers, check yourself before you wreck your portfolio. Chances are that adoption rates will be much slower than management\u2019s rosy predictions.<\/p>\n<p>By the same token, be wary of technology companies focusing exclusively on the youngest age bracket, like Snap Inc. (SNAP).<\/p>\n<p>Although early adoption rates promise to be through the roof, loyalty is fleeting. Once the next \u201cbig thing\u201d comes along, this group will be just as eager (and quick) to abandon one and adopt the other.<\/p>\n<p>That\u2019s it for today. I\u2019ll be back with three more key takeaways from Meeker\u2019s 2017 <i>Internet Trends<\/i> report in next week\u2019s column. Stay tuned!<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/06\/02\/state-internet-3-charts\/\" rel=\"nofollow\">\u201cState of the Internet\u201d in 3 Charts<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Must-read internet report just released. We\u2019ve distilled everything into the most important data sets. Data explosion is bigger than we ever thought possible. Also recommended: When tech strikes back\u2026 Recode dubbed it \u201cthe most anticipated slide deck of the year.\u201d And I agree. Venture capitalist Mary Meeker\u2019s annual Internet Trends report is an [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-106786","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=106786"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106786\/revisions"}],"predecessor-version":[{"id":106792,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106786\/revisions\/106792"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=106786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=106786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=106786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}