Future-Looking 5G Stocks
You don’t make the big money on the stock market by investing in what already is, you make that money by anticipating what is going to be and by arriving there, cash in hand, before everyone else.
It’s not rocket science, but it’s shocking how often people forget that stocks are not traded and valued on what they do for investors today, but instead on what they can become later. In that case, there are few tech stocks quite as exciting as 5G stocks.
The thing about 5G companies is that we’re right now witnessing a changing of the guard. That’s actually a very apt metaphor: imagine you were observing Buckingham Palace and you knew the approximate time that a changing of the guard would take place.
Now imagine someone asked you to place a bet on when, approximately, the next changing of the guard would be. You’d take that wager; it’s a no-brainer. You would have all the information necessary to make a reliable bet. This situation isn’t all that dissimilar from the state of 5G stocks.
You see, right now, 4G (what is soon to be obsolete) is the go-to tech for telecommunications networks. It’s the way most people receive remote Internet access. As you’d expect, 5G is the next-generation tech.
Iterations, as Apple Inc. (NASDAQ:AAPL) has proven with its fast-selling “iPhone” models year after year, are actually not too bad of a play on the stock market.
So even if 5G tech was just an iteration of the old tech, with a few upgrades here and there, it would make sense to be excited for that reason alone. After all, people need mobile network connections now more than ever, as more and more of them will be turning their homes, patios, and local parks into their work stations in 2020 (and beyond, potentially)
5G is so much more than a simple iteration, a minor improvement on the old way of doing things. It’s practically a revolution in the telecommunications space.
The reason being that 5G tech is fast. Very fast.
We all know the agony of waiting for the latest movie, video game, or update to download. With 5G, waiting would be a relic of the past. Or at least that’s the idea.
And that’s just the consumer side of things; the tech industry side is an even brighter spot for 5G stocks.
With artificial intelligence (AI), machine learning, the Internet of Things (IoT), autonomous vehicles, and so much more arriving in the next few years, companies will need to be able to store, retrieve, and share data at blazing-fast speeds wherever they are in the world. 5G networks will be more than up to the task.
Considering that the 5G sector already looks like it will be a multi-billion-dollar industry, and considering that the AI industry could potentially be a trillion-dollar industry if it realizes its full potential, then 5G isn’t just the next big thing in tech; it might also be the thing that leads to the next big thing in tech.
With all that in mind, it’s easy to see why 5G stocks, especially as they are situated in the market right now, could potentially be among the best picks in the next decade.
And the best part is, dear reader, is that you still have plenty of time to get in on the gains.
The fact is that both businesses and consumers are a little slow to adopt new tech. One reason is that usually it comes with a high price early on. Another problem is the need to upgrade infrastructure to accommodate the new tech. In the case of 5G tech, it’s both.
But that only means the 5G stock dominance is going to take place in the next few years, rather than overnight. And that brings us full circle to the changing of the guard. We know approximately when it’s going to happen; all we need to do now is take the bet.
The GSMA, an organization that represents mobile operators, said that, as of January 2020, 79 operators in 39 markets had announced plans to launch commercial 5G services. (Source: “5G Is Now Live in 24 markets, GSMA Predicts It’ll Be 20% of Global Connections by 2025 — and Eyes a Big Tech Break-Up,” TechCrunch, March 5, 2020.)
The GSMA projects that 4G tech will likely remain dominant until 2023, when we’ll start to see more people switch to 5G. As you might expect, 5G tech will be established in urban areas first and gradually expand from there—with one hurdle being the price differential I mentioned earlier.
“The number of live 5G markets is increasing by the day and consumers’ awareness of the technology is also growing as hype makes way for reality. However, there is wide variation across the globe in terms of intentions to upgrade to 5G and the willingness to pay more for it,” said the GSMA. (Source: Ibid.)
But as we’ve seen time and time again in the tech industry, the high cost of new tech is almost always reduced in the marketplace over time.
When 5G tech hits mass consumption, 5G stocks will likely skyrocket.
Investing in the future is almost always a good move. Foresight is the single greatest way to eke out huge profits playing the stock market.
As it stands, 5G stocks are pretty much ordained to dominate the telecommunications space in the 2020s. The better news is that this domination has only begun, with plenty of opportunities left for investors to win big.
Right now, we’re looking at 5G companies just beginning to sniff around the heels of their potential. Before long, they’ll have fully realized it (if things proceed as they are now).
And when that potential is fully realized, investors who were able to get in early—having the foresight to see the changing of the guard from 4G to 5G tech—will likely see huge payouts that could last for years.