Risk Management, Trading & Portfolio Strategies

Mobile computing: Investment opportunity or over-hyped pursuit?

The rise of mobile computing has led to a new wave of potential opportunities for investors.

The rise of mobile computing has led to a new wave of potential opportunities for investors.

A quick ride on the train or stroll through a major metro area will show you just how prevalent mobile computers, from tablets to smart phones, have become in today's society. These devices are proving to be more popular than previously estimated, thanks to a gradual decline in purchase costs and affordable options offered by major telecommunications carriers.

Yet from an investment standpoint, mobile computing poses a quandary. As the last 25 years of technology development have shown, what were once considered top-grade portfolio opportunities turned into boondoggles and wasted opportunities. Companies like Dell, Compaq and Wang Laboratories are testaments to the rise and fall of tech giants since the birth of the personal computer.

However, as The Motley Fool pointed out in a recent essay on the topic, this history shouldn't drive potential investors out of the market. Instead, it's never a bad idea to shop around for potential buys that could produce long-term growth and revenue. As The Fool shows, the share of internet traffic driven by mobile computing has skyrocketed in the past three years. This means more users and, most importantly, higher revenue for big players like Google, Samsung and Apple. Other companies like Facebook, LinkedIn and similar publicly traded firms may also be worth looking into, although it should be noted that businesses without a viable income path should be avoided as market stress and risk volatility could make those investments more costly than previously estimated.

Ultimately, with the advent of mobile computing, especially in emerging markets like India and China, companies with a vested interest in this growing industry may be a smart move for investors as part of a well diversified portfolio. Yet, as we have pointed out, a volatile stock market is no place to be without the technological tools that help you manage and hedge your risk when needed. Those looking for an edge should rely on SmartStops' online​ portfolio risk management service to stay on top of negative market developments. 

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