Is there a tech slowdown? How will anti-trust investigations impact the big 4 tech giants? Are advertising and commerce the next chocolate and peanut butter? In his highly anticipated annual presentation at Fortune Brainstorm Tech, RBC’s Mark Mahaney covers everything you need to know about tech market trends in just 10 minutes. From the latest market conditions and high profile IPOs to regulatory risks and the future of e-commerce, streaming services and AI, find out where the industry is headed and which companies will get there first.
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The tech industry isn’t slowing down, it’s going over the top, according to Mark Mahaney’s Top 10 Tech Trends in 10 Minutes at the Fortune Brainstorm Tech Conference 2019.
There’s a reason why people turn to RBC’s Mark Mahaney, Managing Director, Lead Internet Research Analyst, for the inside track on the tech industry. He’s the oldest, longest-serving internet analyst on the street and has been ranked the No. 1 earnings estimator and the No. 1 stock picker in the internet retail segment by the Financial Times and StarMine and he’s covered the sector since 1998.
This year, he disagrees with the prevailing perception that the tech sector is slowing down. Although the likes of Google, Amazon, Facebook and Netflix have all experienced negative growth that impacted stock price, they also have growth curve initiatives that will allow them to pull up.
“[For example], Netflix can increase prices or Facebook can monetize Instagram stories,” Mahaney said.
There is some downside for the tech giants though in the rising regulatory risks that they’re facing from the US Department of Justice and the FTC. These bodies are investigating the might of the big four leading tech platforms – Amazon, Apple, Facebook and Google – but Mahaney thinks it unlikely that the companies will have to break themselves up.
“I don’t think Google is going to be forced to divest YouTube or Facebook to divest Instagram… I think that’s extremely unlikely to happen based on the work we’ve done with academics and legislators,” said Mahaney.
“But what is a probability is that in the next year or two, these companies are going to face more fines, finally from the US government, not just the EU. There’ll be a cessation of some business practices and maybe the biggest thing we’ll see is the lack of largescale acquisitions.”
Meanwhile, there are new technologies and new directions for the sector to embrace. AR/VR and gaming in the cloud are ramping towards the mainstream, even if they’re currently somewhat in the hype stage of the cycle. Facebook’s move into cryptocurrency has the potential to pull that tech mainstream as well. And paid TV continues to decline as everyone piles onto the streaming service bandwagon, chasing the success of Netflix.
In the retail sector, two trends stand out. Amazon Go has the potential to revolutionize the shopping experience by removing the pain and boredom of queuing for the checkout. And there is real opportunity for social media advertising platforms to collapse the funnel between marketing and retail and transform into large, disruptive ecommerce platforms.
Find out more about these trends, plus Mahaney’s take on privacy concerns and artificial intelligence, in the Top 10 Tech Trends in 10 Minutes video.
About Fortune Brainstorm Tech
Fortune Brainstorm Tech brings together some of the country's leading business minds, most creative technology disruptors and the investors who finance them.
RBC is proud of its partnership with Fortune and ongoing sponsorship of Brainstorm Tech, which is considered one of the preeminent gatherings for the tech community each year. This annual, invitation-only event is held in association with The Aspen Institute and brings together top technology and media leaders, operators, entrepreneurs, innovators, influencers and investors for a dynamic exchange of ideas on key issues shaping the future of business and technology.
