Own a Piece of the Cloud
If nothing else, the coronavirus pandemic has made clear our reliance on the cloud. For all of us to work and shop from home, there must be sufficient bandwidth. In a moment, I’ll show you how you can participate in the cloud’s exponential growth without breaking the bank.
First, let’s reflect on just how reliant we have become on the cloud. Video conferencing provider Zoom Communications (NYDQ: ZM) has tripled in value this year. On July 15, the company announced the release of Zoom for Home to accommodate housebound workers. Long after COVID-19 has been contained, many companies will allow their employees to continue to work from home.
A lot of small businesses need help expanding their online businesses to keep up with consumer demand. That’s why e-commerce company Shopify (NYSE: SHOP) doubled in value during the first half of this year. Starting at $29 per month, Shopify offers business owners a suite of services to help them sell their products online.
To improve your online experiences, software developer Twilio (NYSE: TWLO) provides tools to improve the communication process. During the first quarter of this year, Twilio’s total revenue jumped 57% over last year. Its share price has already doubled in 2020, and the second half of the year could be even better.
The coronavirus pandemic has not stopped consumers from spending money. What it has done is altered the way in which they spend it. These changes are not temporary. One way to insulate the economy from another shock is to reduce its dependence on physical interactions. To do that, a lot of that activity will have to go through the cloud.
Get a CLOU
The three companies mentioned above are among the top five holdings of Global X Cloud Computing ETF (NSDQ: CLOU). This exchange-traded fund is a little over one year old. Until four months ago, it had gone nowhere. Since bottoming out below $13 on March 23, CLOU has gained 75%.
For that reason, you may be thinking that it is too late to get in on the action. After all, anything that has shot up in value that quickly is ripe for a fall, right?
That may be true if the entire stock market takes a dive. The index funds that own many of the same stocks as CLOU will have to rebalance their portfolios. In that case, consider yourself lucky. You will get to buy the future of commerce at a steep discount!
Also read: How to Keep Your Grip During the Next Market Drop
But even if that does not happen, many of the stocks that CLOU owns could easily double or triple over the next five years. Don’t think so? Consider how Apple (NSDQ: AAPL) has performed since it introduced the iPhone in 2007.
On a split and dividend-adjusted basis, AAPL was trading for less than $15 on the day that announcement was made. Five months later, it had doubled in value. Then the Great Recession hit in 2008, pushing AAPL below $12. Since then, it has appreciated more than 3,000%.
Granted, Apple has been one of the most successful companies over the past 20 years. But hindsight is always 20/20. We don’t know who the next Apple will be. Buying CLOU is one way to make sure you own at least a piece of it.
The 5G Connection
Just as the smartphone opened a new world of remote computing, the cloud promises to greatly expand it. Fortunately, the nationwide build-out of a 5G (fifth generation) telecommunications network is nearly complete.
In ways we cannot yet imagine, the combination of cloud computing and 5G bandwidth will change life as we know it. Only a select few industry insiders possess the intelligence, foresight, and courage to know who some of the ultimate winners will be.
Fortunately, I happen to work with one of them. His name is Dr. Stephen Leeb, and he has identified a major shortcoming in 5G technology that only one company can cure.
The global roll-out of 5G wireless will hasten the spread of the Internet of Things (IoT), the seamless web of interconnected devices. IoT is transforming our lives and its potential investment profits are vast.
However, Dr. Leeb has found a fatal flaw in 5G technology that could bring IoT to its knees. Therein lays money-making potential for proactive investors.
Dr. Leeb has tracked down one small, little-known company that has the key to resolving this 5G flaw. When the investment herd finds out, the stock will soar. Click here to learn more.