
/cloudfront-us-east-1.images.arcpublishing.com/gray/ISFUCJIKBRH6DBFNMIOARD7KAU.png)
TURTIX HINT TO GETTING PAST LEVEL 10 DRIVERS
For Facebook, that means the company’s core growth drivers are only going to get more robust over the next few years. That will spark a digital ad shift acceleration. Over the next several years, the digital consumption shift will accelerate. The 5 Biggest Streaming Music Stocks to Consider Now So, the higher Facebook app engagement goes, the more ad dollars will flow into those apps. As such, the more consumers shift their time to the mobile channel, the more time they spend in one or several of Facebook’s four apps. Facebook owns four of the biggest apps on those phones.

In a nutshell, consumers are spending more and more of their time on their phones. There are many reasons to like Facebook (NASDAQ: FB) stock as a long-term holding, and the law of accelerating returns is one of them. Technology Disruption: Digital advertising It won’t stop Amazon stock from heading higher over the next decade, either. That hasn’t stopped Amazon stock from rising 1,750% over that stretch. But, valuation has been a “headwind” for the past decade. Cloud revenues and profits will push higher in the long run, too. At the same time, the pace at which enterprises migrate to the cloud will also accelerate, and Amazon will similarly sustain leadership position in that market given its huge data-center capacity. Amazon’s e-commerce sales and profits will continue to roar higher.
.jpg)
Amazon will leverage its Prime ecosystem, wide distribution network, and huge fulfillment centers to remain the world’s largest online retailer. Over the next ten years, the pace at which consumers migrate to online shopping will accelerate. The law of accelerating returns says to buy Amazon (NASDAQ: AMZN) because this company is only extending its lead in the rapidly growing e-commerce and cloud infrastructure markets. Technology Disruption: E-commerce & cloud Stocks to Buy for the Law of Accelerating Returns: Amazon (TICKER: AMZN) With that in mind, let’s take a look at 20 stocks to buy to align your portfolio on the right side of the law of accelerating returns: Stocks to Buy for the Law of Accelerating Returns: Amazon (AMZN)
TURTIX HINT TO GETTING PAST LEVEL 10 HOW TO
To learn how to apply Fry’s method to your portfolio, read more here. “So you see the market valuation of many high-tech firms has exploded over the past decade, and the problem is that most of those firms are controlled by few individuals … so the market value is highly concentrated and only a small fraction of the population is benefiting from these increases in stock valuation.” “The issue is that most of the value created in the markets is mainly driven by technology,” says Grullon. This means that while it is a massive wealth-creation tool, it only functions favorably for those at the forefront of technological advancement. So the market valuations are going up relative to sales, but for some reason, the ability of firms to generate sales has been going down.”įor this reason, investors have to know the difference between overvalued stocks and true industry disruption to understand which companies are right for long-term gains.Įric Fry (the sharp investing mind who famously bested the prowess of Bill Ackman, David Tepper, Joel Greenblatt, Dan Loeb and David Einhorn) believes the law of accelerating returns is the driving force behind the wealth gap. “But for some reason the asset utilization (the ability of firms to generate sales given their assets) has been declining systematically over the last 40 years … That has huge implications for the market because are not keeping track of the fundamentals. “What we’re finding is that the market valuation factor has been increasing exponentially over the past few decades,” said Professor Grullon. Jones Professor of Finance at Rice University, has shown that the ability for many firms to generate sales commensurate their assets has not kept pace with technological acceleration: Research conducted by Gustavo Grullon, Jesse H. That means the implications are only getting bigger and not always in a positive way. More importantly, the pace of technological change is still accelerating. Their net worth, reach and influence has grown. Similarly, individuals aligned with this trend have also benefited. Their revenues, profits and stock prices have soared. Companies aligned with technological change have advanced forward at breakneck speeds. This phenomena of accelerating returns has huge implications. Then, in the 2000s, we’ve gone from a world where only a handful of people had smartphones and DVD players in 2005, to a world where everyone has an iPhone and Netflix in 2020. But, in the late 1990s, it took only about 30 years for humans to turn the computer and internet from science fiction into reality. It took humans thousands of years to understand fire, stone tools and the wheel.
