Remember New Years day in 2000. The Y2K bug came and went. Twenty two years later our world is facing different challenges but the pioneers of technology are still driving growth of a different kind.
From the garage to the Googleplex
Most of the websites we know and love today weren’t even a thought in 2000, even Google had just become a “thing” about a year earlier. The Google story began during 1995 at Stanford University. Larry Page was considering going to Stanford for grad school and Sergey Brin, a student there, was assigned to show him around. As they say the rest is history. Today Google is part of our everyday lives.
The file-sharing network was created in 1999 and it was then that everyone started illegally downloading music for free instead of buying CDs. The service came with its fair share of issues, though, from songs that took hours to download to ones that ended up being the completely wrong file. Who could live without Spotify?
What is the Metaverse and why is it important.
The metaverse is a network of 3D virtual worlds focused on social connection. Basically, the concept today is you would put on a pair of goggles that have earpieces connected to them. With your phone or computer connected to them, you are all set! The usages are endless.
Facebook’s CEO Mark Zuckerberg believes it is the future of the internet and of his trillion-dollar company.
Roblox might be unknown to many over the age of, say, 25, but the 13-year-old platform is booming. Available on most desktop and mobile platforms, it is simultaneously a venue for free games, a creation engine that allows users to generate new activities of their own, and a marketplace to sell those experiences, as well as side products like outfits for a personalized avatar.
It’s also part of the “metaverse.” Once a niche concept beloved of tech enthusiasts, the idea of a centralized virtual world, a “place” parallel to the physical world, has careened into the mainstream landscape this year, as epitomized by Facebook’s decision in October to rebrand as Meta.
Zuckerberg, who co-founded the social network in 2004, has said that the key to Facebook’s future lies with the metaverse concept—the idea that users will live, work and exercise inside a virtual universe. The company’s Oculus virtual reality headsets and service are an instrumental part of realizing that vision.
Facebook, Amazon, Microsoft, Google and Apple known as FAMGA is still the core of most portfolios
As we move out of the Coronovirus it is time to move away from the vaccine stocks and back to big tech stocks that focus on the new way that we live.
A part of most every portfolio that we tailor for our clients has a large technology component to it. From the FAANG stocks to the Nasdaq index to just having the big 5 of Facebook, Amazon, Microsoft, Google and Apple would have done very well.
The FAMGA stocks outperformed the S&P 500 index in 2020 by a whopping 34.7%
What about the Investment return of the individual stocks of Facebook v Amazon v Microsoft v Google v Apple over the last 5 years?
It is clear from the trend that big tech is still the place to be for pure growth. Apple has been the winner over the last 5 years.
I think the rebranding of Apple to the Metaverse is a huge risk but the virtual world and blockchain is a complete unknown to most over 50’s. Stay tuned it is big and like a Tsunami it will swallow up all before it.
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