Hyperdrive Events, Trends, and Profits
Shah Gilani|November 19, 2020
The world’s changing, quicker than ever.
And yes, that includes COVID-19 changing our future, but probably not in the ways you’re thinking.
The pandemic’s an accelerant; it’s speeding up societal, commercial, and moneymaking trends most people never saw coming.
But those trends are already here, gathering momentum – some because of COVID, some because we’re stepping into our ineluctable future anyway, and there’s no turning back. Not now, not ever.
I call the increasingly rapid adoption and implementation of trends, that with unimaginable speed will accelerate changes in how we live, work, play, and make money “Hyperdrive events.”
Here’s just one example of what’s happening, and how to profit from this trend going into hyperdrive…
“Giantism” and What It Means for Mega Companies
One of the biggest trends around, which is companies getting bigger, a lot bigger, is going into hyperdrive. The trend towards “giantism” is happening for good reasons.
Take mega-cap tech companies for example; they need to grow and get bigger to rule their domains and to expand into other businesses. They have the money and can buy whatever or whomever they want. They grow by acquiring companies, including would be competitors, and businesses they want to expand into.
If you think Google’s parent company, Alphabet, sticks to its knitting or grows organically, you’d be mistaken.
Google, the search engine company as its known, has done more than 200 acquisitions since 2001. They include Motorola Labs for $12.53 billion, YouTube for $1.7 billion, 15 commerce companies, four cloud companies, payments companies, autonomous and self-driving car companies, several robotics companies, more than a couple healthcare companies, three smart home companies including Nest for $3.2 billion, and just this year, Fitbit for $2.1 billion, which fits nicely into Google’s fast-growing healthcare and wearables businesses.
That’s how you become a giant. And Google’s far from done.
Facebook’s been acquiring companies and expanding its reach and “ecosystems” for years. Its greatest hits include buying Instagram for $1 billion, WhatsApp for $22 billion, Oculus VR for $2 billion, and this year buying CTRL-labs for its “brain computer interface.”
Another giant, and one of my favorite companies, Microsoft, is famous for buying GitHub for $7.5 billion, Skype for $8.5 billion, and LinkedIn for $26 billion. Just last month Microsoft bought ZeniMax gamer company for $7.5 billion, and rumor has it is on the verge of another blockbuster acquisition.
Other tech and software giants have been getting bigger too, some adding to their established business lines, others going outside the box and expanding into ancillary or new businesses.
One of my favorite big deals of 2018 (just kidding) was IBM, because I’m no fan of IBM; this serial acquirer of superfluous companies for years bought Red Hat in an all-cash deal for $34 billion.
One of my true favorites, Walmart, who is up there with Microsoft and Target in my book, bought Flipkart for $16 billion to better compete online with Amazon.com, who famously bought Whole Foods a year before for $13.7 billion, to better compete with Walmart… See how this works?
In some of the biggest deals of 2019, already big companies became giants. Bristol Myers Squibb bought Celgene for $74 billion. Takeda bought Shire for $62 billion. AT&T bought Time Warner for $85 billion. Sprint bought T-Mobile for $26 billion.
And the pandemic didn’t slow down anything in 2020; in fact, it was quite the opposite.
2020’s already seen Intuit buy Credit Karma for $7.1 billion; Just Eat Takeaway bought Grubhub for $7.3 billion; and in financial services, Morgan Stanley bought E-Trade for $13 billion and Eton Vance for $7 billion.
Big, as in already huge companies, are becoming giants. They have to if they want to compete on a global scale with other burgeoning giants – some of them state-owned, state-sponsored, or Union, as in European Union, coddled, commercial behemoths.
It’s about market dominance, reach, diversification, and above all, “economies of scale.”
We’re going to capitalize on the hyperdrive movement to giantism by targeting companies likely to get bought on announced deals, on the companies structuring mergers and acquisitions, and on lots of the new SPACs that are coming to market with a dual purpose, to be hived off from private equity portfolios, so they can be acquired and merged with other “similar” companies already in the market, or coming to market.
But there’s more. A lot more.
There’s a Hyperdrive event happening that supports this capital wave into giantism, and it all starts with working from home.
The shift from office space to virtual space has affected over 75 million American workers – videoconferencing platforms and telecommunication apps now dominate our day-to-day life.
But your next big play in this Hyperdrive event shouldn’t be to buy Zoom; that’s come and gone.
No, right now, there are five companies that are on the road to becoming part of a HUGE market – one that could move $353 billion in new wealth over the next 18 months.
And when capital moves at this volume and this pace… you have one shot before it could be gone forever.
Click here to check out this Hyperdrive opportunity.
Sincerely,
Shah
Shah Gilani
Shah Gilani is the Chief Investment Strategist of Manward Press. Shah is a sought-after market commentator… a former hedge fund manager… and a veteran of the Chicago Board of Options Exchange. He ran the futures and options division at the largest retail bank in Britain… and called the implosion of U.S. financial markets (AND the mega bull run that followed). Now at the helm of Manward, Shah is focused tightly on one goal: To do his part to make subscribers wealthier, happier and more free.