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How to Cash in on the Internet of Things

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Welcome to Episode #56 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Eric Dutram, Zacks ETF Strategist, and Ryan McQueeney, Zacks Content Writer, to discuss how investors can cash in on the Internet of Things.

In 2016, there are already 22.9 billion connected devices including thermostats, televisions and refrigerators. The number of connected devices is expected to double by 2020 to over 50 billion.

Someone is going to make a lot of money off this phenomenon, so why not be a part of it?

There are multiple ways investors can play it including through the cloud or networking companies, the semiconductors, as they’re the ones making the chips and sensors that go into the products, and the manufacturers of the products themselves.

Imagine if everyone in America suddenly wanted a “smart” washing machine? Someone is going to make a lot of money making and replacing all the old ones.

There are several companies that are going full throttle into the Internet of Things:

1.      Amazon (AMZN - Free Report) is the leader because of the Echo

2.     Alphabet (GOOGL - Free Report) has Nest, the smart thermostat, and has also developed a device to challenge the Echo

3.     Airgain (AIRG - Free Report) is a small company that went IPO in August 2016. It makes WiFi antennas for customers like DirectTV. Devices used to have 1 to 2 antennas per product and now have 10 to 12.

4.     Qualcomm (QCOM - Free Report) recently announced its acquisition of NXP Semiconductor in a $47 billion deal which will make it one of the leaders of the Internet of Things on the chip side.

And for those interested in a basket of stocks in multiple sectors that are involved in the Internet of Things, then the new Global X Internet of Things ETF (SNSR - Free Report) might be just what the doctor ordered. This gives you a diversified portfolio of companies throughout the entire Internet of Things infrastructure.

What else should you know about one of the biggest global transformations of the next 5 years?

Tune into this week’s podcast to find out.

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