According to Mary Meeker of Kleiner Perkins, there are 10 important internet trends currently affecting the economy (1).
1. Globality – We Aren’t In Kansas Anymore…
Meeker revealed that 81% of users of the top ten global internet properties are outside the USA, which makes global markets a force to be reckoned with.
2. Mobile – Early Innings Growth, Still…
iPhones, iPods and iPads have revolutionized the market. But Android tablets and phones, at a different price point, are not to be underestimated.
3. User Interface – Text/Graphical/ Touch / Sound / Move
“Sound is going to be bigger than video. Record is the new Qwerty,” say SoundCloud CEO Alexander Ljung.
4. Commerce – Fast / Easy / Fun / Savings = More Important Than Ever…
The ability to click and buy on a mobile device is making a huge difference in mobile commerce. “It’s now an expectation that if you see it on your screen, you can click and buy it,” says Meeker.
5. Advertising – Lookin’ Good…
Look at Google’s (GOOG) click growth for an indicator of advertising health: 23% of clicks on ads is a good sign Meeker says.
6. Content Creation – Changed Forever
Meeker refers to Joanne Bradford from Demand Media doing a better job at talking about content creation.
7. Technology / Mobile Leadership – Americans Should Be Proud
64% of smartphones have U.S.A. OSes (iOS, Android, Windows Phone) versus 5% 5 years ago.
8. Mega-Trend of 21st Century = Empowerment of People via Connected Mobile Devices
“The ability to get real-time fast and broad information flow is only going to get greater,” says Meeker.
9. Authentic Identity – The Good / Bad / Ugly. But Mostly Good?
“One of the biggest topics of the next ten years,” Meeker says.
10. Economy – Lots of Uncertainty
Despite lots of indicators of uncertainty, “We’ve had a good two weeks.”
Here are 5 stocks that may benefit from those trends:
1 - Vodafone (VOD)
Global proliferation of tablets and smartphones, which are becoming more powerful at cheaper prices, will benefit for Vodafone and its customers. It will enable huge mobile commerce growth. Vodafone is an international mobile player, involved in many emerging markets.
2 - Google (GOOG)
Google is a horizontal aggregator (2) involved in most of the information sub-sectors. The potential for the development of the infomediation business model is huge by using the data bank of its users. Moreover, its products and services (i.e. Google offers, Google TV, Google Ad Network) are leveraging several of the internet trends such as globality, mobile commerce, advertising, empowerment of people.
3 - Apple (AAPL)
The firm has momentum in its core markets: iPad, iPhone, iPod. It also has an important product portfolio pipeline (innovation projects). New features can become killer apps like speech recognition on iPhone 4S and iPhone 5. It dominates some of its markets: ie. over 80% market share for the iPad, 70% of songs for the iTunes store.
4 - Amazon (AMZN)
The new Kindle Fire is a serious competitor to the iPad. While it is aimed first at the lowest segment of users, future versions may compete more directly with most of the functions of the iPad. The potential for mobile advertising is huge. On another issue, Amazon is competing not only with bookstores, but it is also starting to compete with publishers, making partnerships directly with the authors. Cutting the middleman can be very lucrative.
5 - Facebook
Facebook is still a private company with an IPO planned maybe for 2012. While most of the traffic of Twitter and Pandora (P) are now coming from mobile devices, 33% of Facebook traffic is now from mobile and it is growing quickly. More powerful smartphones enable more user-friendly mobile web browsing.
Disclosure: I am long VOD.