Listen to the audio version of this article (generated by AI).
A Technology Shift Can Bring New Market Winners
Growing up in South Texas, I didn’t go to the neighborhood convenience store for candy or gum. I went to the icehouse.
The term was a leftover from a time before electric refrigeration when storefronts sold large blocks of ice to keep home iceboxes cold.
This was a critical business in a place as hot as Texas.
The business of delivering ice was so big that one New England native, Frederic Tudor, became known as “The Ice King.” His business cut massive blocks from frozen lakes in New England, packed them in sawdust, and shipped them to customers hundreds or even thousands of miles away.
For decades starting in the 1820s, Tudor invested in specialized equipment, icehouses, transportation networks, and distribution systems.
Then electric refrigeration became widespread, and the demand for ice delivery, well …melted away.
Another Industry May Be Approaching a Similar Turning Point
The business cycle repeats this process more often than you might think.
At the beginning of the 20th century, cities depended on horses for transportation and deliveries. The widespread adoption of automobiles put carriage manufacturers, blacksmiths, harness makers, stables, and feed suppliers out of business.
Kodak dominated the film business for generations, but digital cameras gave consumers a better alternative to buying film and paying to develop every photograph.
Blockbuster operated thousands of stores nationwide. But Netflix and other streaming services made their business model obsolete.
Nokia was the world’s leading cellular phone manufacturer when Apple introduced the iPhone in 2007. Just a few years later, smartphones shifted the marketplace, and Nokia was left behind.
And now Luke sees that a similar pattern may be emerging in a familiar industry.
For decades, big companies have dominated this industry by building increasingly sophisticated – and increasingly expensive – products.
They’ve invested billions of dollars in research, manufacturing facilities, and specialized equipment.
And they’ve developed relationships with some of the world’s most powerful customers.
But a new generation of technology is challenging the economics that made these companies so successful. Less expensive innovations can now accomplish tasks that once required equipment and infrastructure costing millions of dollars.
When technology changes the rules of an industry, the big money will flow in new directions. Companies that seemed insignificant can suddenly become essential suppliers.
And investors who recognize the shift early can find themselves in on the ground floor of the companies that will dominate the future.
That’s exactly the kind of opportunity technology investing expert Luke Lango has spent his career looking for.
Luke knows that when a technological revolution begins, the biggest winners aren’t necessarily the companies everyone already knows.
Sometimes they’re the relatively obscure businesses supplying the technology that makes the revolution possible.
And he’s demonstrated that insight before.
Consider Bloom Energy (BE).
The stock is considered part of the AI megatrend that started in November 2022. Data centers require massive, continuous amounts of electricity, and BE manufactures solid-oxide fuel cells that can be installed quickly and can provide electricity without relying on the traditional power grid.
Luke first recommended the stock in 2022, before ChatGPT’s debut and the start of the AI megatrend.
What did Luke see? Here’s what he wrote in May 2022.
We believe the world is embarking upon a journey toward energy independence. The end goal of this movement is to create a series of distributed energy systems (as energy folks like to call them) that are cheaper, easier, more reliable, and more convenient than the current interconnected global energy ecosystem.
We call this movement the Distributed Energy Revolution – and we think it’s a big, big idea.
It will rewrite the rules of the multi-trillion-dollar energy industry and create a new generation of energy infrastructure titans.
And investors who followed Luke’s recommendation had the opportunity to see gains of more than 1,000%!
Right now, Bloom Energy is trading below Luke’s buy below price of $300. So, he believes there is still plenty of room for this stock to grow.
Now, Luke believes he’s identified another major technological transformation.
And he thinks it could create an entirely new generation of stock market winners.
The transformation Luke is tracking now isn’t being driven by consumer demand alone.
Some of the world’s most powerful institutions are preparing to spend enormous sums to embrace a new generation of technology.
And just as Bloom Energy became an essential supplier to the AI revolution, Luke believes a handful of little-known companies could become indispensable to this next wave of spending.
He’s identified several stocks he believes are especially well positioned to benefit.
And he’s revealing them in a special presentation he’s prepared for investors.
Click here to watch Luke’s presentation and discover the technological revolution he believes could create the next generation of stock market winners.
You may already know the companies that dominated the last era.
The question is whether you’ll recognize the companies positioned to dominate the next one.
Icehouses rapidly disappeared after the advent of electric refrigeration, even if the name survived a little longer. But you’d rather be invested in new technologies than the ones they’re replacing.
Enjoy your weekend,
Luis Hernandez
Editor in Chief, InvestorPlace
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
