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Bitcoin investor. Hedge fund manager. Technology player.
  • Mobile And Bitcoin 0 comments
    Dec 1, 2013 9:30 PM | about stocks: NOK, SIRI, FH, ZNGA

    As market participants, we usually talk about systemic risk but rarely talk about systemic reward. We can consider systemic reward as the potential for massive growth and construction of new revenue and innovation for a particular sector that is largely unanticipated. Enter mobile apps combined with Bitcoin. But first, a bit of history.

    Mobile has taken many surprise as mobile apps have become the new 'websites' and mobile devices the new 'laptops'. Some companies such as Apple (AAPL) and Google (GOOG) have been responsible for triggering this unprecedented wave of technology and consumer attention. The attention of consumers continues to shift to mobile and away from the desktop as smartphones and mobile devices are now outselling laptops and desktop computers. This trend is bigger than the PC revolution and Internet revolution and it's affecting numerous companies and institutions in very rewarding ways. Let review how this is happening.

    Historically Rewarded in the Mobile space as an Investor

    When Apple released the first iPhone, a new ecosystem of mobile web-app developers was spawned along with a new ecosystem of hardware and chip makers which began to support this new kind of mobile device such as Skyworks Solutions (SWKS) and Arm Holdings (ARMH). Android devices and iPhones began to be produced with the ability to run native mobile apps thus triggering yet another ecosystem of mobile app developers - software makers that were utilizing the new inputs and outputs of these devices in ways never before seen. Mobile app makers themselves came to be worth hundreds of millions and even billions up to $9 billion for one mobile app maker. Many investors who paid attention to the way technology was shifting toward mobile have benefited and this includes investors who smartly position in these companies. The mobile app makers continue to increase in value to this day and opportunities remain tremendous.

    However, other companies who did not pay attention have suffered. Lack of adapting, pivoting and innovating can lead to a deadly disposition.

    One investors systemic reward can be another's systemic risk

    Companies like BlackBerry (BBRY), Nokia (NOK), the late Dell (NASDAQ:DELL) and Hewlett Packard (HPQ) have fumbled drastically by not paying attention or being caught by surprise when it comes to where consumers want to spend their time. For example, BlackBerry(formerly named RIM)'s former co-CEO Jim Bastille thought mobile apps were "a passing fad". Nothing more can be further from the truth as the collapse of BlackBerry's stock price has clearly shown. It is mobile apps that are driving the sales of smartphones and devices while making or breaking companies that are or are not aware of this key fact. Meanwhile, "Facebook was falling behind in mobile as younger start-ups were innovating more quickly." Facebook and its investors paid the price shortly after its IPO for ignoring the most important ecosystem and growth trend in technology since the Internet itself. Things have changed slightly more positive for Facebook since then.

    Where the Wild Cards Are

    Microsoft is in a camp all to itself. Microsoft remains as a wild card in mobile, a large dark horse in mobile which is being illuminated by its current mobile strategy connected to Windows 8. Although Microsoft has always been considered the king of the desktop when it comes to the OS on the consumer and enterprise level, their mobile strategy seems to be smartly fusing with their desktop strategy. Think about the impact for developers and consumers if Windows mobile apps ran on mobile phones, tablets and the desktop. This could be happening very soon so stay tuned to mobile especially when mobile is combined with international fully electronic cryptocurrency such as Bitcoin.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: NOK, SIRI, FH, ZNGA
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