“The ones who are crazy enough to think they can change the world, are the ones who do.” – Steve Jobs
Modern automobiles were first invented in the late 1800’s and took nearly a century to become fully penetrated in American households. The development of infrastructure such as highways and paved roads helped ease this adoption.
In turn, automobiles helped make new experiences possible such as the hospital.
Today, there are countless technologies making their way into U.S. households. For example, smartphones have become widely adapted by 83% of households, while gaming consoles come in around 33%, and VR headsets at around 6%.
What Does the Future Hold?
With these penetration rates as context, investors can attempt to envision what the future world could look like (and which companies are best positioned to capture all this growth).
You can also take this a step further and think of the new technologies, jobs, and industries that will be created as a result.
Consider gaming consoles as they continue to make their way in U.S. households. The direct beneficiaries are the companies selling the hardware such as Sony (Play Station) or Microsoft (Xbox). But there is an entire ecosystem experiencing tailwinds as well as developers like Electronic Arts and Activision.
If devices such as smart watches and reality headsets become widely adopted, it’s interesting to think of the opportunities that will arise. Those are likely to be the companies directly in the race and the layers of infrastructure supporting the growth.
Mentioned stocks and tickers: Microsoft NASDAQ: MSFT, Electronic Arts NASDAQ: EA, Activision Blizzard NASDAQ: ATVI
Twitter: @_SeanDavid
The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
