10 Minutes, 10 Tech Trends with Mark Mahaney

By Mark Mahaney
Published November 20, 2019 | 10 min watch

Managing Director and Internet Research Analyst for RBC Capital Markets, Mark Mahaney, breaks down the 10 most notable trends in tech, focusing especially on the current state of consumer internet markets.

1. Robust Market Conditions: All-time highs…?


Market conditions are pretty robust, with 2019 being the best performing S&P 500 for six years – and yet the internet IPOs have underperformed. There’s a big winner among them still waiting to make an impact in 2020.

2. Consistent Demand Trends: Growth is breeding more growth


The big players such as Google, Facebook and Netflix continue to shine with sustained double-digit growth year over year. It is a testament to the size of the internet market opportunities out there – but it also reflects some very smart management practices in those firms.

3. The Drums of Regulation: Beware the increasing antitrust rhetoric


Dubbed the elephant in the room, antitrust law is playing an increasingly prominent role among tech sector risks. Lawyers and politicians alike are issuing stark reminders that market dominance isn’t always the free ride it’s perceived to be. Where competition is stifled, punitive action can and will be taken.

4. Everything is Going Streaming: A marketplace transformation


According to the New York Times, there are some 270 video streaming companies competing for business – sure-fire evidence of the commercial potential even in a rapidly crowding market.  Music, gaming and even exercise are in the battle for market growth in streaming.

5. Amazon: Leading the charge in retail disruption


Speed, choice and convenience are what will eventually make Amazon’s forays into scan-and-go shopping the new normal over time. Amazon Go is an example of a relatively small and still novel model that is arguably the most disruptive and interesting game changer in physical retail today.

6. Artificial intelligence and machine learning:  Giving companies the edge


Companies like Google are increasing their capex spend on machine learning to hyper-target their ads using better algorithms. The winners will be those with the data and the means to increase ad rates while maintaining strong returns on investment.

7. VR and AR: Virtual and augmented reality bites…


VR and AR have not quite infiltrated consumers’ everyday lives, but we are closer than ever to that scenario in 2020. The sectors currently most likely to benefit from its increased adoption in the digital space include retail and hospitality.

8. Wearables: Why carry when you can wear?


Wearables are gaining traction, triggering increased interest from the big players like Amazon and Google. While the debate often centers on increased phone power and functionality, Google’s $2bn purchase of Fitbit and Amazon’s roll-out of wearables suggests that we’re entering an increasingly frictionless relationship with the internet.

9. 5G: Brand reinforcement tool or enabler for everyone else?


While “everything” will be improved by the introduction of 5G thanks to parallel advances in VR, AR and the Internet of Things, the known and trusted brands will be most likely to benefit from 5G’s step-change in connectivity. The FANGs, therefore, are at least a good bet for stocks as the tech innovators currently gaining ground with 5G.

10. Crypto: Will it finally go mainstream?


Though it’s a somewhat early prediction, Facebook is best-placed to help take crypto and payments mainstream, not least because of its sheer dominance. Facebook Pay is something to watch closely because of its rapidly growing consumer ad power.

Mark Mahaney

Mark Mahaney
Managing Director, Internet Research Analyst

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