AAPL Stock: Why Apple Will Be A Whole New Company in Five Years

The clues to Apple's evolution were all there in its earnings report

When it comes to Apple (NASDAQ:AAPL) stock, let me just say I’m a big fan of Apple products. I wear an Apple Watch every day.

So I say this with love: Apple is going to be a completely different company in five years. In fact, it’s already on that track now… far from the days when Steve Jobs would get onstage in his famous black turtlenecks and preview the latest iPhone, with all the eyes of the world watching.

“Apple” has always been synonymous with “innovation” — that’s still true today. The company basically invented the Internet of Things (IoT), and now it’s riding that trend in new ways.

When people talk about the IoT, the classic example is the “smart refrigerator.” You’re driving home, and you get a text message: “We’re low on milk.” Only it’s not from your significant other… it’s from your refrigerator.

But from a business standpoint, are smart refrigerators a growth industry? Sure, to a degree. But when you think about transformative growth, major players like Apple — and investors like me — are paying very close attention to another IoT trend: medical IoT.

Take a look at this chart, and it’ll be very clear:

AAPL Stock: Why Apple Will Be A Whole New Company in Five Years

When analysts are predicting 14X growth in just 10 years, that’s when it’s pretty clear you’ve found a money-maker! So, it’s no wonder that Apple would move into this market.

In the company’s earnings last week, iPhone sales were down (although still a significant revenue driver). Yet Apple stock moved higher on the earnings report! Why? Because Apple wearables helped make up the difference.

Wearables like the Apple Watch are much more than a gimmick. They’re helping people like me take control of our lives — and especially our health.

Most importantly, these wearables are helping move healthcare into the 21st century. Rather than waiting in the same old crowded waiting rooms to get a checkup (that may or may not tell you much), you can call up your doctor, you can have your own data on-hand, and you can get better care, more efficiently.

The latest version of the Apple Watch — the Series 4 — is actually an approved medical device. It can alert you to a low heart rate, detect your heart rhythm, and even conduct an ECG (or EKG).

This is the future: telemedicine, and personalized, precision healthcare. Lots of tech companies say they want to “make the world a better place”… and by making wearable, connected medical devices, they can actually do that.

The Big Picture: A $15 Trillion Market

That’s all well and good — now, how do we invest in this?

Well, let’s pull back for a second and look at the entire market for IoT.

AAPL Stock: Why Apple Will Be A Whole New Company in Five Years

There are smart cities, businesses, homes, cars…all factor into the global IoT market and the coming 5G network, along with connected health.

Individual companies like Apple play a role in some of that. But every second, 127 new devices connect to the internet. All in all, companies are expected to invest $15 trillion in IoT in eight years (from 2017 to 2025).

So when you’re investing like a venture capitalist, and building a basket of stocks with the potential to make 10X your money, you can’t stick just with investments like AAPL stock.

While I’d never bet against Apple, 10X growth is an astronomical leap, at this point.

Plus, when you’ve got a wide-ranging trend like the Internet of Things… you want to think big! You don’t necessarily invest in one company that needs the technology. You invest in a company that provides the technology.

It’s kind of like how, with Apple stock, public opinion comes and goes. But, at the end of the day, the company is still selling 35 million iPhones in a typical quarter. To cash in on that, investors often gravitate to iPhone component makers like Qualcomm (NASDAQ:QCOM).

And if you want to see 10X growth, look at how Qualcomm did in the 1990s, as mobile carriers started to deploy 4G networks.

QCOM Stock: Why Apple Will Be A Whole New Company in Five Years

So when you’re investing in the IoT market of today, you can’t go wrong investing in the hardware that goes into all these devices.

The Breakthrough Tech that Makes the IoT Revolution Possible

Once the Internet of Things (IoT) fully takes hold, almost everything we own will be connected to the internet – from thermostats to automobiles to streetlights. And all of those devices need to be powered.

That’s why any investor needs to be on the lookout for the next big breakthrough in battery technology. It’s an innovation that will have multi-trillion-dollar economic implications:

Think of a world with electric cars that have massive ranges. Think of an iPhone that needs charging just once per month. Think of mass adoption of clean solar and wind energy. Think of airplanes that run on batteries. Think of the eventual demise of the oil and gas industry.

This is where we’re headed — but there are some serious limitations to the current technology. Lithium-ion batteries are too bulky, without enough battery life, and with too many safety concerns, not to mention the fact that key materials are in short supply. That’s why I believe the next big battery breakthrough will go down as one of the greatest inventions of the 21st century.

I’ve spent an enormous amount of time studying the battery industry. I can tell you this mega innovation isn’t a matter of “if,” it’s a matter of “when.” Click here for my presentation with the results of my research. That way, you can get in on this trend BEFORE the world catches on.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.


Article printed from InvestorPlace Media, https://investorplace.com/2019/08/aapl-stock-why-apple-will-be-a-whole-new-company-in-five-years/.

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