5 Ways to Play the Launch of 5G Through Innovative Stocks

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5G Stocks - 5 Ways to Play the Launch of 5G Through Innovative Stocks

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One of the biggest pieces of news coming out of the world of 5G is the delay of new deployments due to concerns over airline safety. AT&T (NYSE:T) confirmed that they will be delaying their deployment of C-Band 5G services by an additional two-week period after a request from the Transportation Secretary Pete Buttigieg.

Commenting on the situation, AT&T said, “We know aviation safety and 5G can coexist and we are confident further collaboration and technical assessment will allay any issues.” Verizon (NYSE:VZ) issued a nearly identical statement; the company will limit the 5G network near airports. Naturally, this is not great news for 5G stocks. However, it doesn’t mean they are suddenly a bad investment.

With 5G networks, customers can enjoy a much faster internet experience than the incumbent 4G technology. The benefits of increased capacity for advanced connected software applications and less latency when using these new services in our daily lives is a huge leap forward that opens up many possibilities, including an improved customer experience.

You can invest in 5G technology to get ahead of the curve and stay up-to-date with new developments. The technology will touch a wide variety of areas. So, if you want to invest in 5G, several options are available. The only thing you need to consider is that this is a new area of investment. Therefore, patience is a virtue when investing in this space.

With that in mind, here are five areas in 5G worth investing in:

  • Streaming
  • Gaming
  • Financial Services
  • E-Commerce
  • Remote Work

5G Stocks: Streaming

5G’s increased bandwidth and lower latency will make it easier than ever to stream your favorite shows from the comfort of home. You can now enjoy them in high definition without any buffering, lagging, or interruption on screen.

With the rise in popularity of streaming TV, many new options have come out. Consumers are spending a lot of time and money on these services. Streaming entertainment stocks are hot right now. And there is no better way to get in on the action than by investing directly with Netflix (NASDAQ:NFLX). With competitors like Disney (NYSE:DIS) or FuboTV (NYSE:FUBO) not too far behind, it’s clear that this industry trend will continue its rapid growth trajectory for years — if not decades.

Netflix is still the largest pure-play streaming TV service, with over 200 million subscribers worldwide. Net new signups in America have slowed down recently. Nonetheless, Netflix continues growing internationally at an impressive rate. It is investing heavily in foreign content, which will help it outpace the competition.

Apart from Netflix, DIS and AT&T (NYSE:T) are the other two attractive options in the space. With the launch of Disney+, subscribers have been flocking to this new streaming service. It is already second only to Netflix and will likely continue growing in popularity. Offerings in the space include Disney+, Hulu, and ESPN+. Due to the breadth of the content, the company will provide Netflix with the stiffest competition moving forward.

Meanwhile, the number of subscribers to AT&T’s HBO Max and the cable channel HBO has steadily increased in recent years. In 2021 alone, they managed 73.8 million global customers. Moving forward, it can become a force in streaming. And it’s a diversified company, so you know your investment is safe.

Gaming

cloud gaming: Gamer Playing and Winning in First-Person Shooter Online Video Game on His Personal Computer
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Simply put, 5G mobile devices are going to be the future of gaming. Graphics will improve, connection speeds won’t affect gameplay, and you can play multiplayer games on your phone. While cloud gaming was once the preserve of high-end computers, it’s now possible with 5G technology. This means that you’ll be able to play games from your phone without any lag or disruption — perfect for mobile gamers.

Gaming’s hesitation to embrace streaming is not surprising, given how latency affects gameplay. When gamers want to stream, they need to stay near their game server’s location. If not live close, network latency will make it hard for them to play a video game using streaming services like Twitch or YouTube.

However, the future of gaming is 5G. Latency and buffering are a thing of the past with this new technology. Mobile network operators will no longer limit your gameplay with data caps. With 5G, you’ll have access and control over how much bandwidth is used in a short period.

Interactive gaming is an ever-growing industry that has only seen growth in the last few years. Companies like Capcom (OTCMKTS:CCOEF), Zynga (NASDAQ:ZNGA) stand out as top stocks to buy long term because they are adapting their gameplay based on what players want from them. With this week’s announcement that Microsoft (NASDAQ:MSFT) will buy Activision Blizzard (NASDAQ:ATVI), the cloud and software behemoth is buying a chair at the gaming table.

Video games are a popular form of entertainment, and the global market for them will likely continue to grow in the coming decades. Leading game publishers can take advantage of this trend by expanding into new markets. Although reopenings are hurting the video game sector, companies in the space will continue to do well.

5G Stocks: Financial Services

a person holding an iphone in one hand and a credit card in the othr
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The financial industry is about to experience a major shift with the advent of 5G networks. These technological advances will not only change how we interact and transact business, but also advancements in technologies like blockchain could revolutionize finance as well.

5G technology could allow banks to pop up anywhere connectivity is available, which would enable them to meet the needs of customers in any place. This will make it easier for people who live far away from branches or don’t have access there at all times.

Fintech companies are on the cutting edge of technology, using their knowledge and skills in finance to create new solutions for our lives. For example, some fintech businesses develop digital payment processing systems. In contrast, others build or operate person-to-person payments apps that will soon be replacing old-school ways we pay each other.

As the world moves toward a more digital economy, we must recognize new opportunities and challenges for financial service providers. Traditional banks face increasing competition from fintech startups that operate with low costs using technology instead of bricks-and-mortar locations.

Square (NYSE:SQ), PayPal (NASDAQ:PYPL) and Mastercard (NYSE:MA) are all platforms that offer a range of services for both businesses as well individual users. Due to the ubiquitous nature of these companies, they are the best way to play this space. Apart from these large enterprises, one other company has done very well in this area.

Green Dot (NYSE:GDOT) has been around since before most people even knew what a “fintech” company was. They were one of the original innovators in this space. Although they have lost some space to the larger players, it’s still one of the best 5G stocks out there.

E-commerce

Miniature bags in a shopping cart sit on top of a laptop keyboard.
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With the recent rise in commercial 5G growth, retailers are excited about enhancing mobile e-commerce experiences. The promise of faster speeds and lower latency makes it easier for shoppers to shop from anywhere at any time without experiencing any bottlenecks or delays — a major improvement over current practices that often leave customers frustrated with slow page loads on their websites.

In a world where every second counts, 5G speeds will make you the winner in any competition. It’s not just about how fast data can travel from point A to B – it’s also important that such networks provide low latency and high-quality connections, which are essential when doing retail transactions online or otherwise.

In our current environment of slow internet connection times due largely, because there isn’t enough bandwidth available for everyone who wants access at once, 4G/LTE has been adequate, but this could all change with next-generation technologies.

That is why 5G stocks should include e-commerce plays like Alibaba (NYSE:BABA) and Amazon (NASDAQ:AMZN). Other prominent e-commerce stocks include Shopify (NYSE:SHOP) and eBay (NASDAQ:EBAY).

It is worth paying close attention to the Chinese e-commerce space. It is battered from regulatory activity right now. Depending on your risk profile, it can be the ideal buy-the-dip opportunity.

5G Stocks: Remote Work

A photo of woman working on a computer at a desk in her home.
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The workplace is a competitive and stressful place. When the pandemic hit, many businesses shifted employees to work from home as part of their effort to keep up with demand while maintaining a zero risk exposure policy for those who would rather avoid going into offices or workshops where they might come across others infected by this disease.

5G is set to change the game for business, as it provides an enhanced level of performance that allows companies both big and small with remote work options. As 4G modems were enough in their day but not anymore with this next-generation technology on hand willing to provide increased bandwidths needed by today’s always-on workforce who may be anywhere at any time – even when they’re off duty.

The trend of companies hiring remote workers is on the rise, and it’s not surprising why. A recent survey revealed that 82% plan to accommodate this type of work environment at least some time in their company strategy, with nearly half saying they’ll make permanent moves towards such an arrangement soon enough.

The aforementioned Microsoft , Salesforce (NYSE:CRM), Zoom (NASDAQ:ZM), Dropbox (NASDAQ:DBX) and DocuSign (NASDAQ:DOCU) are excellent stocks if you want to play this space.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. You can check out his analysis on InvestorPlace and TipRanks.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


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