Mobile Spreads, Profits Should Shift
Advances in computing power, network speeds and smartphones are driving an explosion in mobile device usage. While mobile is already the dominant vehicle for internet usage in the U.S., mobile is also poised to overtake traditional media (newspaper, television and radio).
  • 2021 usage of ​mobile devices is expected to overtake that of traditional media among U.S. adults.

  • The trend is being driven, in part, by adults aged 18-24 spending significantly more time on mobile devices than previous generations. Adults over 24 years of age are also consuming greater levels of media on their mobile devices.1

  • The rapid increase in smartphone use has resulted in mobile e-commerce growing 45% year over year in 4Q17, which underscores the opportunity for businesses to grow their top line through mobile search advertising, enhanced apps and mobile web optimization to capture the burgeoning audience of mobile users.2

  • Aside from the large internet media and e-commerce companies that will benefit from the trend toward mobile, banking companies offering robust mobile apps may also take market share as customers focus less on branch locations and more on smartphone user interface. Additionally, semiconductor companies that manufacture specialized chips for mobile devices may see increased sales.​

1, 2 ComScore

The views expressed are the views of Fred Alger Management, Inc. as of March ​2018. 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.

Risk Disclosures: Investing in the stock market involves gains and losses and may not be suitable for all investors. Growth stocks tend to be more volatile than other stocks, as the prices of growth stocks tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political and economic development.

Fred Alger & Company, Incorporated 360 Park Avenue South, New York, NY 10010 /

800.305.8547 (Retail) / 212.806.8869 (Institutional)​