Mobile Payments
When is the last time you wrote a check to pay for something or left the house with a set amount of cash in your wallet for errands? For a growing number of people worldwide, it is entirely possible that they may not be able to recall. In the U.S., the use of credit and debit cards have largely replaced the use of checks, and carrying cash is increasingly seen as unnecessary and inconvenient. This dramatic transformation of our payment practices can be explained in part by the emergence of mobile payment technology for smartphones in recent years.
The rise of mobile payments has transformed the way we pay for everyday items and simplified how we share money with one another.
With smartphones in almost everyone’s pockets and apps that transfer money digitally in seconds, the days of frantically searching for an ATM or cursing yourself for leaving your wallet at home are coming to an end. Who needs a checkbook when you can quickly transfer your friend that $25 you owe them with a few taps on your smartphone?
What Are Mobile Payments?
According to Square, a leading mobile payment technology company, mobile payments are defined as “regulated transactions that take place digitally through your mobile device.”
Most mobile payments are conducted through a mobile wallet or mobile money transfer. A mobile wallet is a smartphone app that securely stores credit or debit card information. This information can be digitally communicated to a business’s point-of-sale system by holding the smartphone near the business’s payment reader.
Popular mobile wallet apps include Apple Pay, Samsung Pay, and Android Pay, and companies that provide businesses with software and devices to accept mobile payments include Square, SumUp, and PayPal.
In the case of mobile money transfers (also sometimes referred to as “peer-to-peer” or “P2P” payments), funds are transferred between users on an app. Typically, a user creates an account on the app, links their bank account, debit card, and/or credit card information with the app, and “adds” accounts of other individuals who use the app. Money may then be requested from or sent to the accounts of these individuals.
Popular money transfer apps include Venmo, WorldRemit, and Azimo.
Mobile payment companies monetize the services they offer in a variety of ways. Square, for instance, charges businesses a fee ranging from 2.5% to 3.5% for each transaction (with a flat fee of 10 cents added to each transaction fee). Venmo, on the other hand, charges its users a 3% fee for sending money via credit card instead of debit card. Both companies offer expedited access to transferred funds for a fee. Since its November 2015 IPO, the stock price for Square has risen from about $8 per share to about $65 per share (as of November 2019). Since its July 2015 spinoff from eBay, the stock price for PayPal (Venmo’s parent company) has risen from about $40 per share to about $103 per share (as of November 2019).
A Fast Growing Market
According to a 2018 report by GSMA, 143 million new mobile payment accounts were opened worldwide in 2018, bringing the total number of accounts to 866 million. Approximately $1.30 billion was processed every day via mobile payment in 2018, and a typical active user moved an average of $206 per month.
The speed, efficiency, and security offered by mobile payments help explain why this technology has become so popular across the globe. The rise in this technology is also providing people who have traditionally been excluded from formal banking systems with access to life-changing financial services.
According to the World Bank, “Financial inclusion is a building block for both poverty reduction and opportunities for economic growth, with access to digital financial services critical for joining the new digital economy.”
Why Invest in Mobile Payments?
For those interested in investing in this rapidly-growing sector, however, there are a few important points to understand.
The mobile payment companies mentioned thus far are undeniably successful. Square’s total net revenue in the third quarter of 2019 was $1.27 billion, which is a 44% increase over 2018’s third quarter earnings. PayPal’s total net revenue for the same quarter was $4.38 billion, with Venmo accounting for $400 million (double the $200 million from the third quarter in 2018). With steady growth and a seemingly-unlimited appetite for disrupting the value of traditional financial institutions, there has never been a better time to consider investing in companies offering mobile payment solutions.
While Square and Venmo may be the first that come to mind with respect to mobile payments in the U.S., there are many other companies that have arisen in recent years in other parts of the world that are just as innovative and, in terms of active users, arguably more successful. Whether it’s WeChat Pay in China, Paytm in India, or M-PESA in Kenya, entrepreneurs across the globe have known about the transformative potential of mobile payments for years.
The acceptance of mobile payments as a trusted and valued financial tool has occurred at a faster rate and to greater effect in the developing world than in the U.S. For instance, an eMarketer report found that in 2019, approximately 80% of smartphone users in China regularly use mobile payments, while only about 30% of smartphone users in the U.S. regularly make mobile payments.
It may seem as if there would be no room for growth with 80% of users currently accounted for in China’s market, but it is important to note that the 20% of smartphone users not regularly making mobile payments represent about 135 million people.
Not to mention, the 70% of smartphone users in the U.S. not regularly making mobile payments represent about 138 million people. Smartphone users in the U.S. have been slow to adopt mobile payments en masse, due in part to a widespread perceived risk regarding the security of digitally-transferred funds. As the population in the U.S. ages and more accurate information about the security and convenience of mobile payments filters out, it is likely that a much higher percentage of the population will adopt the technology.
In the meantime, companies at the cutting edge of mobile payment innovation will continue to reimagine and redefine how we think about our finances.
How to Invest in Mobile Payments
A search on Magnifi suggests that there are a number of different ways for investors to get involved in the fast growing Mobile Payments sector.
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The information and data are as of the November 20, 2019 (publish date) unless otherwise noted and subject to change. This blog is sponsored by Magnifi.
SMH
The VanEck Vectors Semiconductor ETF (SMH) is designed to replicate the MVIS US Listed Semiconductor 25 Index, which tracks the overall performance of companies involved in semiconductor production and equipment. Beyond that, SMH focuses on the most liquid companies in the industry based on market cap and trading volume, with a bias toward large, well-established semiconductor companies. It invests in both domestic and U.S. listed foreign companies.
SMH’s top holdings include Taiwan Semiconductor Manufacturing Co. (13.42%), Intel (11.80%), Nvidia (5.77%), Texas Instruments (5.19%), Asml Holding (5.11%), Lam Research (4.89%), Advanced Micro Devices (4.85%), Qualcomm (4.81%) Broadcom (4.70%) and Applied Material (4.53%). Companies in the United States makes up 74.77% of its portfolio, followed by Taiwan at 13/42% and the Netherlands at 9.55%.
SMH’s expense ratio is 0.39% and it currently has about $1.6 billion in assets under management.
Rationale
The most direct way to gain exposure to the holdings in SMH is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. While SMH seeks to mirror the global semiconductor market, there are different weightings and investment approaches to this sector that might perform differently in different investment environments. Rather than buying SMH shares themselves, investors interested in a semiconductor ETF that’s weighted differently or takes a more global approach might consider buying funds that provide exposure to similar semiconductor firms. After all, the return drivers that will benefit SMH might also benefit other funds focused on the semiconductor space.
Investing in SMH
A search on Magnifi suggests that investors can gain access to the semiconductor market via a number of different funds and other ETFs, including those shown below.
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This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Intel (INTC)
The Silicon Valley region of California’s Bay Area got its name in the 1960s as a result of the many semiconductor companies that were established in the area, making the silicon-based chips that were powering the computer revolution. At the forefront of this movement was Intel (INTC), a company founded by two of luminaries of information technology – Robert Noyce, the inventor of the integrated circuit, and Gordon Moore, the developer of “Moore’s law” of technological development – that emerged as an early leader in both SRAM and DRAM memory chips, as well as the x86 series of microprocessors that drove the vast majority of personal computers starting in the 1980s.
Today Intel continues to manufacture processors for mobile and desktop use, as well as computer hardware infrastructure like motherboards, network interface controllers, memory chips, graphics controllers and more. Intel’s primary competitor to this day is AMD, the number-two U.S. maker of integrated circuits.
In 2018, Intel reported more than $70 billion in revenue and employed more than 110,000 people in facilities all over the world.
Rationale
The most direct way to gain exposure to INTC is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. As of 2018, Intel remains a world leader in semiconductor development and manufacturing. But it is starting to grip on the world market, recently losing its title of world’s largest semiconductor to South Korea’s Samsung Electronics. What’s more, as mobile computer begins to fully displace traditional desktop and laptop computers, there is less of a need for Intel’s specialized hardware. That pivot is only accelerating and could start to drag down Intel’s long-term growth.
However, rather than buying INTC shares themselves, investors interested in gaining exposure to the information technology and semiconductor sectors might consider buying funds that provide exposure to Intel and its competitors. After all, the return drivers that will benefit INTC might also benefit other similar companies in information technology, computing, and semiconductor manufacturing. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like INTC through these types of funds.
Investing in INTC
A search on Magnifi suggests that investors can gain access to INTC via a number of different funds and ETFs, including those shown below.
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This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
IBM (IBM)
Few companies have been as successful at reinventing themselves and their businesses over the years as IBM(IBM), which got its start as International Business Machines in the first half of the 20th century, selling early computing machines, eventually expanding out to include mainframes, personal computers and more. It is also a major research organization, holding the record for more U.S. patents generated by a business for the last 26 years, including such innovations as the ATM machine, floppy disk, UPC barcode, magnetic stripe reader and more.
Today IBM develops computer hardware and software, offers business consulting services, cloud computing services and more. Its subsidiaries include PwC Consulting, The Weather Company and Red Hat, a maker of open-source software.
IBM currently employs more than 350,000 people across 170 countries and its revenue for 2018 was $79.5 billion.
Rationale
The most direct way to gain exposure to IBM is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. As a multinational conglomerate in the large and competitive information technology industry, IBM must continually innovate in order to stay ahead of the ever-evolving market for computer technology and services. What’s more, IBM has gone through a number of different evolutions in recent decades – most notably a pivot to consulting services in the 2000s – in order to remain competitive. It has done well so far, but longevity in such a competitive space is never guaranteed.
However, rather than buying IBM shares themselves, investors interested in gaining exposure to the information technology sector might consider buying funds that provide exposure to IBM and its competitors. After all, the return drivers that will benefit IBM might also benefit other similar companies in information technology, computing, and business consulting. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like IBM through these types of funds.
Investing in IBM
A search on Magnifi suggests that investors can gain access to IBM via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Dish Network (DISH)
Cable television revolutionized entertainment in the 1950s and 60s, delivering television directly to users via a dedicated cable rather than relying on weak broadcast service, resulting in better quality and access to far more content. Then, in the 1980s and 90s, satellite television technology took it a step further, beaming content directly to viewers via satellite, expanding the service footprint that cable cannot reach. Founded in 1996, Dish Network (DISH) is today one of the largest direct-broadcast satellite providers in the U.S., also offering over-the-top service via its subsidiary Sling TV.
The company got its start in 1980 as EchoStar Communications Corporation, which distributed satellite television equipment, and didn’t get into satellite service until 1995 when it launched its first satellite, EchoStar I. As of 2018, Dish Network had roughly 17,000 employees and roughly 9.9 million customers. Its revenue for the most recent year were $13.6 billion.
Rationale
The most direct way to gain exposure to Dish Network is to buy its listed shares, of course, but there are reasons for investors to reconsider that approach. Like many companies in the television services business, DISH is currently losing customers at a rapid pace due to the ongoing cord-cutting trend, which is seeing subscribers cancel their pay-TV subscriptions in favor of direct and internet streaming entertainment options. Dish in particular lost 381,000 subscribers in Q4 2018, and more than five million in total since 2014.
However, for investors interested in gaining exposure to the television sector, rather than buying DISH shares themselves should consider buying funds that provide exposure to Dish Network and other communications firms like AT&T’s DirecTV and cable providers. After all, the return drivers that will benefit DISH might also benefit other similar companies. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Dish Network through these types of funds.
Investing in DISH
A search on Magnifi suggests that investors can gain access to Dish Network via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) isn’t a household name for many people, but that doesn’t mean the company hasn’t has a massive impact on the daily lives of billions of people around the world. AMD is the second-largest supplier of microprocessors in the world, behind only Intel (INTC) in terms of market reach, and today is produces a wide range of microprocessor chips (for computers as well as mobile devices), motherboard chipsets, embedded processors and graphics processors for services, workstations, personal computers, mobile devices and more.
It’s also active in the market for graphics processes after acquiring ATI in 2006. Today it is number-two in graphics process unit sales after only Nvidia (NVDA). In 2018, AMD’s revenue was $6.48 billion and its market cap was about $45 billion.
Rationale
All that said, there are reasons for investors to think twice about investing directly in AMD. The most direct way to gain exposure to Advanced Micro Devices is to buy its listed shares, of course, but its participation in the extremely competitive computer hardware market might make many reconsider that approach. Companies like AMD must constantly innovate and find new ways to drive revenue as both technologies and consumer needs change and evolve. This can be extremely lucrative for those can stay ahead of the trends, but those fortunes can change quickly when a new technology or need is overlooked or claimed by a competitor. What’s more, as the number-two competitor in both of its primary markets – microprocessors (behind Intel) and graphics processing units (behind Nvidia) – Advanced Micro Devices is at the mercy of its larger competitors and is often forced to compete on price rather than its own innovations.
However, for investors interested in gaining exposure to the microprocessing sector, rather than buying AMD shares themselves should consider buying funds that provide exposure to Advanced Micro Devices and other similar firms. After all, the return drivers that will benefit AMD might also benefit other similar tech firms. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Advanced Micro Devices through these types of funds.
Investing in AMD
A search on Magnifi suggests that investors can gain access to AMD via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Microsoft (MSFT)
When your cofounder and former CEO is regularly in the mix for richest person in the world, you know the company they founded is going to be a huge one, and Microsoft (MSFT) lives up to the billing. Founded by Gates and his business partner, Paul Allen, in Albuquerque, NM in 1975 as a software company focused on BASIC applications, Microsoft later moved to the Seattle suburbs and has become synonymous with personal computing and software ever since.
Today Microsoft sells computer software, consumer electronics, personal computers, cloud computing and a wide range of related products and surfaces, including the Microsoft Office software package, Windows operating system, Xbox video game consoles, and the Microsoft Surface table computer. It is the world’s largest software company by revenue, and also owns social networking site LinkedIn as well as online communications provider Skype.
As of 2019, Microsoft is the world’s most valuable company, with a market cap of $1.14 trillion and fiscal year 2019 revenues of $125 billion.
Rationale
The most direct way to gain exposure to Microsoft is to buy its listed shares. But investors have good reason to reconsider that approach given Microsoft’s participation in the extremely competitive and trend-focused personal computing market. Companies like Microsoft must constantly innovate and find new ways to drive revenue as both technologies and consumer needs change and evolve. This can be extremely lucrative for those can stay ahead of the trends, but those fortunes can change quickly when a new technology or need is overlooked or claimed by a competitor.
However, for investors interested in gaining exposure to the software sector, rather than buying MSFT shares themselves should consider buying funds that provide exposure to Microsoft and other similar firms. After all, the return drivers that will benefit MSFT might also benefit other similar tech firms. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Microsoft through these types of funds.
Investing in MSFT
A search on Magnifi suggests that investors can gain access to Microsoft via a number of different funds and ETFs, including those shown above.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
AT&T (T)
Innovation is an American tradition, and few modern companies are as directly tied to that spirit as AT&T (T), the multinational holding company that can trace its roots back to the Bell Telephone Company, founded by telephone inventor Alexander Graham Bell in 1877. Today it is the world’s largest telecommunications company, the largest mobile services provider and the largest network operator in the U.S.
AT&T currently operates DirecTV, AT&T Mexico and a long list of other subsidiaries including Ameritech, BellSouth, Pacific Telesis and SBC Communications. It is also the parent company of mass media conglomerate WarnerMedia.
AT&T reported $170 billion in revenue in 2018. For the second quarter of 2019, it generated $35 billion from its communications business, accounting for roughly 80% of revenue. The company employs more than 250,000 and operates worldwide, including voice service in 225 countries and data service in 210 countries.
Rationale
The most direct way to gain exposure to AT&T is to buy its listed shares. But investors have good reason to reconsider that approach given AT&T’s long-term growth prospects and its current price. Much of T’s revenue is driven by landline service, which is dying out around the world. Although it is expanding into mobile communications service and other offerings, it is still tied to a fading technology.
However, for investors interested in gaining exposure to the communications sector, rather than buying T shares themselves should consider buying funds that provide exposure to AT&T and other similar firms. After all, the return drivers that will benefit T might also benefit other similar firms in communications that are better diversified. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like T through these types of funds.
Investing in T
A search on Magnifi suggests that investors can gain access to AT&T via a number of different funds and ETFs, including those shown below.
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This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Alphabet (GOOG)
You know you’re one of the largest, most successful companies in the world when you can change your name and still not miss a beat in terms of investor interest. But that’s exactly what the conglomerate Alphabet (GOOG) did in 2015 when it was created as part of Google’s corporate restructure. Today, Alphabet is the parent company of Google as well as a number of its subsidiaries. The idea was to create a structure with “greater autonomy” and allow Google to expand into other businesses beyond simply internet services.
In addition to Google, Alphabet’s subsidiaries include Calico, DeepMind, GV, CapitalG, X, Google Fiber, Jigsaw, Makani, Sidewalk Labs, Verily, Waymo, Wing and Loon. It also oversees former Google projects such as YouTube, the Android mobile operating system and more.
Alphabet reported more than $110 billion in total revenue in 2017, 86% of which comes from advertising via Adsense and Google’s AdWords products, 53% of which operates outside of the U.S.
Rationale
The most direct way to gain exposure to Alphabet is to buy its listed shares. But investors have good reason to reconsider that approach given GOOG’s long-term growth prospects and its current price. What was once a high-growth internet startup is now a well-established digital enterprise, and the creation of Alphabet as the Google holding company only solidified that fact. GOOG itself is no longer a growth holding.
However, for investors interested in gaining exposure to the internet sector, rather than buying GOOG shares themselves should consider buying funds that provide exposure to Alphabet and other and other similar firms. After all, the return drivers that will benefit GOOG might also benefit other similar firms in internet services. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like GOOG through these types of funds.
Investing in GOOG
A search on Magnifi suggests that investors can gain access to Alphabet via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]
Facebook (FB)
Founded in a Harvard dorm room in 2004, Facebook (FB) has in the intervening years become one of the major companies of our time. Far from the first social network on the internet, Facebook has however established itself as the most successful, boasting more than 2.4 billion active users worldwide and 85 offices spread across 35 countries.
As of 2019, Facebook has a market cap of more than $460 billion, and the company reported total revenue of nearly $56 billion in 2018, mostly generated from online advertising. That figure was up 37% from the $40 billion in revenue the company reported in 2017. The company has been actively acquiring other companies since its founding and currently owns Instagram, WhatsApp, Occulus VR, FriendFeed and adtech company LiveRail among its total 79 businesses.
Facebook’s 2012 IPO was the largest tech IPO in U.S. history, with more than 421 million shares priced at $38 per share raising roughly $16 billion.
Rationale
A direct way to gain exposure to Facebook is to buy the listed shares. But, despite its growth, Facebook remains a volatile and uncertain company. It is still only 15 years old, so it continues to experience growing pains in its new industry. What’s more, potential government regulation of the platform could slow its growth going forward.
A solution that can dampen some of that volatility is to buy funds that provide exposure to Facebook and other similar firms, rather than FB shares themselves. After all, the return drivers that will benefit Facebook might also benefit other similar firms in online advertising, digital media, and hardware. As investment management is gradually moving to the construction of portfolios using ETFs and mutual funds in addition to single stocks, investors would do well to consider gain exposure to firms like Facebook through these types of funds.
Investing in FB
A search on Magnifi suggests that investors can gain access to Facebook via a number of different funds and ETFs, including those shown below.
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Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Try it for yourself today.
This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]