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How to Invest in the Internet of Things in 2019

Tracey Ryniec
  • (1:00) - The Internet of Things: Should You Worry About Hacks?
  • (7:15) - The Big AI Push & Data Collection
  • (13:50) - Where To Find The Investing Opportunities 
  • (26:00) - Episode Roundup: GOOGL, MSFT, AMZN, NVDA, IBM, GE, CLDR
  •                 Podcast@Zacks.com

Welcome to Episode #166 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks Senior Stock Strategist and the Editor of the TAZR and Healthcare Innovators newsletter, Kevin Cook, to discuss the developments in the Internet of Things (IoT).

Having smart devices in the home, workplace or the car is no longer a sci-fi fantasy. This year there is expected to be over 14 billion smart devices with that number expected to nearly double by 2021.

But some growing pains are developing along the way. In the Chicago suburbs, a family recently had its Nest cameras and thermostat hacked and saw a loss of privacy.

Are there security and privacy concerns facing the industry in the coming year?

Do you want the technology companies to know when you turn on those lights, light the stove, and what you re-order to stock your refrigerator every week?

For Investors: Is Big the Only Way to Get In?

If you want to invest in the Internet of Things, your options are somewhat limited.

Right now, the industry is dominated by the large technology names.

Amazon’s AMZN Alexa and Echo and Alphabet’s GOOGL Google Home may just be speakers to some consumers, but to others they are a connection to other devices in their home. They are the epicenter of the home smart technology.

Alphabet is also creating smart networks through its Nest thermostat system.

Microsoft MSFT has pledged to spend $5 billion over the next 4 years on the Internet of Things and is already partnering with other, smaller companies in the space.

NVIDIA NVDA), is, of course, one of the big chip makers that is driving the technology.

But if investors want to go smaller, then they should consider Cloudera CLDR, which is on the data and analytics side of the business.

What else should you know about investing in the Internet of Things in 2019?

Tune into this week’s podcast to find out.

[In full disclosure, the author of this article owns shares of AMZN and GOOGL in her personal portfolio.]

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Cloudera, Inc. (CLDR) : Free Stock Analysis Report
 
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