The Revolution Is Here

As more and more devices are created with internet access and built-in sensors, technology costs are declining and connected device adoption is expected to skyrocket. The likely beneficiaries of the mobile internet revolution are companies that thrive on the utilization of massive amounts of personalized data and those that are poised to harness widespread automation.
  

  • There are now estimated to be more internet-connected devices than people in the world and connected devices are expected to grow over 30% annually, surpassing 20 billion in number by 2020.

  • Mobile internet will enable two important trends. The first is a massive increase in data collection that should lead to highly targeted advertisements and personalized digital experiences.

  • The second trend we expect is much greater automation, which may lead to appliances and machinery better serving humans and autonomously servicing themselves, such as a car that drives itself to a gas station when it is low on fuel.

  • Businesses that may benefit include payment companies, social networks, and mobile platforms on the personalization side, and appliance makers and technology-enabled grocery/consumer packaged goods retailers on the automation side. Additionally, both trends may support cloud computing companies and memory-chip makers.


The views expressed are the views of Fred Alger Management, Inc. as of Novemeber 2017. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

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