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Kodak invented new technology and still lost … where you can find tomorrow’s winners
Can you identify the item below?
This is – believe it or not – the world’s first digital camera … invented by Kodak.
Well, invented by Kodak engineer Steven Sasson. As you probably remember, Kodak was the leader in photography. They sold cameras, film, and every other accessory dealing with analog photography.
But you also probably remember that Kodak’s business was eventually buried by digital photography. If they were the first ones to develop digital photography, why were they eventually killed by it?
The simple truth is that management preferred protecting its existing business rather than investing in future technology.
They saw the future but immediately underestimated how quickly it would change everything.
When remembering this story, I’m reminded of a quote from motivational speaker Tony Robbins:
The future cannot be navigated by looking in the rearview mirror…
Investors often make the same mistake.
They spend so much time studying today’s winners that they fail to notice the next technological shift taking shape right before their eyes.
Major innovations are dominating the news right now. The SpaceX IPO was on Friday, but news of upcoming IPOs from AI leaders OpenAI and Anthropic have people excited to try to get in on the ground floor.
Instead of looking at what has already happened, or things we know will happen soon, what can we find earlier that no one else is on to yet?
That’s where the biggest gains are hiding.
Where to Find the Next Big Gains
The challenge, of course, is distinguishing between a genuine technological shift and just another overhyped trend.
Kodak’s executives weren’t blind. They saw digital photography before anyone else.
Their mistake wasn’t failing to recognize the technology. It was failing to recognize its consequences. Plus, they had such a strong business in analog photography that they didn’t want to do anything that might jeopardize it.
Digital photography seemed like a niche product. Instead, it completely transformed the way the world captured and shared memories.
According to tech analyst Luke Lango, investors may be facing a similar moment today.
If you’re new to the Digest, Luke has built his reputation by identifying major technology shifts before Wall Street fully appreciates them. That means he finds them before they go on for double and triple-digit gains.
Today, companies and investors are creating wealth at the fastest rate ever. In fact, Luke often says that it’s never been easier to make 10X your money in the stock market than it is now.
Those are the opportunities Luke finds for his Innovation Investor subscribers.
As the name would imply, Innovation Investor is all about investing in innovation, which is the best investment strategy in the market.
It was more than a year ago when Luke recommended Marvell Technology (MRVL). Back in March of 2025, the market endured a downturn, not too different from the ones we’ve seen this week. Luke saw this as an opportunity to get into innovative technology at a lower price.
Here is what he wrote in his recommendation:
Marvell is a semiconductor firm that specializes in designing network and storage solutions for use in data centers. This positions MRVL at the epicenter of the AI infrastructure boom, and the company has seen huge demand for its products over the past few years as companies build more AI data centers.
We don’t see this demand slowing anytime soon. The company should sustain more than 20% revenue growth and more than 30% profit growth for the next few years.
Because of the recent market crash, though, MRVL stock now trades at a two-year low valuation multiple of 23.5 times forward earnings, which feels like a steal for a potential more than 30% profit grower. Meanwhile, the stock has also crashed into oversold territory and is finally showing signs of life. We think shares could rebound significantly here.
Initially, the stock delivered the quick 30% gain Luke mentioned, but as the AI megatrend has accelerated, so has the stock.
Since that recommendation, the stock has risen by more than 200%.
These are the kind of gains Luke seeks out in Innovation Investor.
Most people are understandably focused on artificial intelligence, SpaceX, and the latest wave of high-profile IPOs. That’s where everyone is looking.
Luke is looking somewhere else. He believes an even larger story may be developing quietly in the background.
One that could ultimately affect every paycheck, every investment account, every tax payment, and every dollar moving through the financial system.
And at the center of that story is the leading innovation leader of our time, Elon Musk.
Only this time, Musk isn’t just disrupting cars or rockets. Instead, he has now set his sights on the single largest industry on the planet: banking.
And, as usual, he isn’t interested in taking his time or being polite about his ambitions.
According to recent statements, the world’s richest man wants his new bank to become “the biggest financial institution in the world” and “the place where all the money is.”
Kodak saw the future before almost anyone else. But they underestimated how much it would matter.
Luke believes Wall Street may be making a similar mistake today.
Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace
