By Matt McCallMay 16, 2020
An important lesson we’ve learned during the “new normal” is that access to fast, reliable internet service is more essential than ever.
Hunkered down at home, Americans are relying on video chat services like Zoom Video Communications (ZM) or Google (GOOGL) Classroom to work and stay connected with family and friends.
They’re visiting doctors virtually through Teladoc Health (TDOC). They’re watching more shows on Netflix (NFLX) and Amazon (AMZN), playing more video games thanks to companies like Tencent (TCEHY) and ordering more groceries through companies like Target (TGT).
It’s no coincidence these businesses have been recent stock market winners.
They’ve thrived thanks to the online communication system that supports the global economy. This information superhighway includes the fiber optics cables, cell towers, Wi-Fi hubs, and more that relay our texts, emails, phone calls, and payments.
A massive and mind-blowing upgrade to this whole system is just now beginning. Faster phone speeds are great, but there’s so much more to 5G in the technologies it enables and the investment opportunities it gives us.
The impact from the COVID-19 shutdown is already huge, but imagine how much worse it would be if we didn’t have the technology to connect remotely. More workplaces would shutter. School would come to a halt. We’d see less of friends and family through video calls.
Indeed, some residential areas recently saw their average internet traffic jump 20% in a matter of days, according to Ericsson (ERIC) CEO Borje Ekholm. The shift has happened so suddenly that Ekholm accelerated his prediction for when 5G wireless technology will roll out across the globe. He now expects 5G subscriptions will reach 2.8 billion by 2025, with noticeable increases before the end of the year.
You can think of 5G as the mother of wireless network upgrades. And COVID-19 has only spotlighted 5G’s importance and accelerated its buildout. When your health or your job are literally on the line, faster connections are not just nice – they are necessary.
The next generation of mobility will increase download speeds by 100X. If you’ve experienced any janky or lost connections recently – like I have – you’ll appreciate the upgrade.
But it’s more than just a nice upgrade so we don’t get inconvenienced. I call 5G a “keystone” technology because it will enable many other breakthroughs that will change our lives. I mean self-driving cars, remote robotic surgeries, virtual and augmented reality, billions of connected devices known as the Internet of Things (IoT), telehealth, smart factories, smart cities, and more.
Add it all up and you’re looking at breakthroughs worth more than $56 trillion.
The rollout over the next seven to 10 years is creating a massive long-term investment opportunity.
Just like what happened during the rise of the internet in the 1990s. And probably even bigger.
Back then, companies that set up shop along that superhighway used the continuous stream of information flowing across it to unlock tremendous value for customers. Investors who spotted the trend early were rewarded with eye-popping gains.
Microsoft (MSFT) is one example. It turned office software into one of history’s largest corporate money piles and saw its stock rise 18,027% from the early ‘90s until now. It set up shop along the highway and profited for decades, unlike those who built the highway and then were done.
eBay (EBAY) is another example. The e-commerce juggernaut sat right on the internet highway and saw its shares increase 4,000%.
The companies building on 5G’s backbone today will also see the value of their businesses increase exponentially. They will profit for years and years.
And now, a post-COVID-19 world will demand faster, more efficient supply chains and production lines. That will be possible with data fed by countless connected sensors.
5G’s speed and reliability will enable this shift. With 5G, data can be processed in as little as 2 milliseconds. If that sounds incredibly fast, it is. It’s faster than the human brain, which processes information in 13 milliseconds.
It’s no exaggeration to say the breakthroughs made possible by 5G will dwarf the economic impact of the internet.
Years from now, we’ll look back at the creation of 5G the way we look back at the buildout of America’s railroads. And for investors, it’s the best chance to turn small investments into life-changing wealth.
P.S. Companies like Microsoft capitalized on the internet and generated more than 18,000% profits.
5G is setting up similar opportunities today. But many investors are acting on bad information.
It’s maddening, and it’s why I just released my new 5G Highway Super Portfolio. It is filled with stocks set to ride the wave higher, like the #1 5G medical robotics company or a company I’m calling the “Google of 5G.”
To learn more about the massive opportunity and the companies I’m talking about, click here now.
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