Billion User Bogey
New product adoption is occurring at a much faster rate than ever before because the digital economy creates larger markets that are easier to access. What does this trend mean for the economy and investing? More disruption may be in store.

  • It took more than two decades for the wildly successful Microsoft products, created in the 1980s, to reach one billion users.  The pace of adoption is rapidly accelerating with Google Drive reaching one billion users in only six years. 

  • The digital economy runs on massive platforms that allow for many users to gain access to new products and services at the same time and with just a few clicks.  The result is accelerating change and more frequent industry disruption. An example is the media industry, which is being dramatically reshaped with legacy publishers losing subscribers and advertisers to digital content providers. 

  • The increasing rate of change and ensuing disruption should be a tailwind to growth stocks and may be a headwind to value stocks, as equities that appear cheap may simply be victims of change. 


The views expressed are the views of Fred Alger Management, Inc. as of October 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.

This material must be accompanied by the most recent fund fact sheet(s) if used in connection with the sale of mutual fund shares. 

Risk Disclosure: 
Investing in the stock market involves gains and losses and may not be suitable for all investors. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Many technology companies have limited operating histories and prices of these companies' securities have historically been more volatile than other securities, especially over the short term. Technology companies may also face increased competition, government regulation, and risk of obsolescence due to progress in technological developments. 

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