Podcast: Investing in Rapid Innovations

From eSports to self-driving cars to the adoption of machine learning, keeping up with radical technology shifts can be daunting for investors.

In this podcast, Alger Technology Sector Analyst ​Ben Reynolds provides an update on these investing themes and discusses why he believes the better technology companies are making efforts to disrupt themselves.

​​Key Points​​
  • eSports is likely at a nascent investing stage, but may see faster adoption than other technology innovations, such as virtual and augmented reality, which may take longer to monetize.​

  • The total eSports industry could generate $25-$50 billion in 10-15 years, compared to the current legacy sports industry at $150 billion.

  • Self-driving cars will likely gain widespread acceptance as “trust” fears diminish over time.

  • The dominant technology companies would rather invest in disrupting themselves than be disrupted by competitors.

The views expressed are the views of Fred Alger Management, Inc. as of June 2018. These views are subject to change at any time and should not be interpreted as a guarantee of the future performance of the markets, any security or any strategy managed by Fred Alger Management, Inc. These views should not be considered a recommendation to purchase or sell securities. Individual securities or industries/sectors mentioned, if any, should be considered in the context of an overall portfolio and therefore reference to them should not be construed as a recommendation or offer to purchase or sell securities. 

Risk Disclosures: 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. 

League of Legends is produced by a subsidiary of Tencent Holdings Limited (“Tencent”) and Overwatch is produced by a subsidiary of Activision Blizzard, Inc. (“Activision”).  Neither Mr. Neuman nor Mr. Reynolds directly owns Tencent or Activision in their personal accounts.  Fred Alger & Company, Incorporated and Fred Alger Management, Inc. (together “Alger”) do not own Tencent or Activision, and Alger does not perform any investment banking services on behalf of Tencent or Activision; however Alger advises client assets on Activision, $22.3K, and Tencent, $13.7M. 

Distributor: Fred Alger & Company, Incorporated. Member NYSE Euronext, SIPC. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.

Founded in 1964, Fred Alger Management provides investment advisory services to institutional and individual investors through traditional and alternative strategies in a variety of products, including separate accounts, mutual funds and privately offered investment vehicles. For more information, please visit www.alger.com.​​