Written by Ophir Gottlieb and Jason Hitchings first posted on: news.cmlviz.com
A lot of the information we're about to cover might feel like a surprise. In many ways it is. That's because our purpose is to provide institutional research to all investors and break the information monopoly held by the top .1%.
A RADICAL CHANGE
Your life is about to change. The signs are all around us, but they're easy to miss. Look carefully and you'll see coffee drinkers holding smartphones inches in front of their faces as they pivot left and right. Dig into tech news and you'll find blurbs about a dozen technology companies quietly releasing products to developers and journalists. Despite the hushed advances, the scope of the coming change is massive:
"This is a technology whose consumer base looks increasingly like [all of] humanity."The most powerful technology companies in the world - Apple (AAPL), Google (GOOGL), Facebook (FB), Microsoft (MSFT), Netflix (NFLX) - see the coming change, and all five companies are racing to control its future. And if you know where to look, you can find a company a fraction of their size that might win out over all of them in this transformation.
Dave Thier, Forbes
Information technology is fundamentally disruptive. Huge portions of our economy have fundamental changed. Retail is being redefined. Office jobs have radically transformed. Media and entertainment are revolutionized.
The scope of what was coming was hard to see when computers were being used to play pong, and modems dialed over phone lines so teenagers could type messages to each other in chat rooms.
Virtual reality is in this same early stage, and it's growth will be equally explosive. From digi-capital:
Together VR/AR are projected to hit $150 billion in yearly sales by just 2020. Even this is only the beginning.
The promise of VR is that our perceived environment will no longer be tied to our physical location. Why drive to work, when your co-workers can appear on your couch for the meeting? Why fly to Florida when you see your parents every night for dinner? Why buy ocean-front property, when a turquoise sea is washing in through every window?
FACEBOOK GOES VIRTUAL
Facebook's Oculus Rift quietly started accepting pre-orders and the headsets are expected to begin arriving at the doors of the first customers soon.
Facebook was early to grasp the potential of the virtual reality space. In March 2014 they snapped up the premier developer of VR headsets, Oculus, in a reported $2 billion deal.
If this seems like a strange move for a social company, look at Facebook's stated goal from their website:
"Facebook�s mission is to give people the power to share and make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what�s going on in the world, and to share and express what matters to them.""Staying connected" and "discovering what's going on in the world" are two critical applications for VR technology and Facebook has bought a front row seat. Further, to make sure they stay front and center, they've launched "360-degree videos" that allow Oculus Rift owners to watch videos from all angles through their headsets.
"What if we could go beyond the screen, where your digital world is blended with your real world? Now we can. This is the world with holograms."Microsoft is out ahead of the pack on the augmented reality side of this technology. Their "HoloLens" just now began shipping to developers on March 30th:
Microsoft grabs our attention in their video ad, promising:
"New ways to visualize our work. News ways to share ideas. More immersive ways to play. New ways to teach and learn. New ways to collaborate and explore."The price tag for this enticing version 1 is $3000. Google blazed a trail with Glass and got burned, failing to bring their technology mainstream. But now that society and culture are more familiar with the concept, if Microsoft can make HoloLens a success, they could be in an extremely strong position to reap the massive rewards of this exploding market.
Apple is sitting atop the technology throne, making an almost unfathomable sum from its domination of the devices space. CML Pro will graph the Net Income of the world's largest companies to show us just how dominant Apple's cash machine is:
60% of that windfall comes from the iPhone, and Apple is leveraging those cash flows to innovate in the biggest technological trends of the future. They are injecting massive sums into a spectrum of technologies. Not only are they investing billions, but the rate at which Apple is investing is accelerating. CML Pro will show us just how big their technological bet has become:
$2.4 billion dollars per quarter. Annualized, Apple will be investing more into R&D then the entire economic output of 60 different countries.
Apple sees the changing technological landscape as well as any company, and they've responded in decisive fashion. In addition to the huge R&D investment, Apple has grabbed at some of the top tech and talent in the industry.
On May 28th 2015, Apple acquired Metaio, an augmented reality startup. Then, in November Apple acquired Faceshift; the company that created motion capture technology used in the latest Star Wars film. We also learned that Apple hired Doug Bowman, Ph.D. who is considered to be one of the world's top virtual reality researchers.
Even before all of this, Apple was filing patents like this one:
"Method and system for creating an image-based virtual reality environment utilizing a fisheye lens"
As the virtual reality landscape heats up, Apple is fighting to ensure they are at the cutting edge. Best of all, a new wave of VR headsets are being created as mounting devices for existing smartphones:
This trend gives Apple the golden opportunity to reinforce the iPhone's dominant position while simultaneously opening up massive new revenue streams.
GOOGLE GETS IN
Google has recently created a virtual reality department, headed by Clay Bavor (source: recode.net). Bavor was previously in charge of Google's experimental, low cost "Cardboard" device that allowed users to mount smartphones as VR devices.
This product might look like part of a 6-year-old's Halloween costume, but careful before you dismiss it. They've already sold over a million units of "Cardboard".
We also can't forget that Google has already made one huge bet in the space of augmented reality with their Google Glass line. While they proved to be too early for mass market appeal, they've undoubtedly learned from the failures and successes of this effort. Perhaps the most important result of this product line is that it began the societal acclimation to seeing technology blended with our everyday lives in ways to which people were not accustomed.
NETFLIX RIDES THE WAVE
In case you had any doubts if this technology was going to be huge, Netflix already broke ground as the first streaming video provider to launch Oculus Rift capable videos through their new app. Blockbuster hits for the Video on Demand company such as House of Cards and Orange is the New Black are available now, and 3D content is soon to follow (source: CNN Money).
THE REAL WINNER
The big players are making huge bets on Virtual Reality's future. But most surprising of all is that there is a mid-sized technology company based in the US and trading on the NASDAQ that is positioned to be the biggest winner out of all of these companies. They could well make a huge portion of the profits in an industry forecasted to hit $150 billion annually by 2020. This company is one of our few "Top Picks" for 2016. Finding the 'next Apple' or 'next Google' is what CML Pro is all about.
Each company in our 'Top Picks' is the single winner we see in an exploding thematic shift like artificial intelligence, Internet of Things, drones, biotech and more. Here's one more of the trends that will radically affect the future that CML Pro is ahead of, cyber security:
Market correction or not, recession or not, the growth in this area is a near certainty, even if projections come down, this is happening. CML Pro has named the single best cyber security stock to benefit from this theme.
These are just two of the themes we have identified and this is just one of the fantastic reports CML Pro members get along with all the visual tools, the precious thematic top picks for 2016, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.
Thanks for reading, friends.
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