Entries filed under 'Technology'

    The Contrarian Investor: How E-commerce Hurts the Retail Sector

    April 11, 2016 11:07 AM by Anthony Attardo

    Online shopping has been a boon to consumers, but contrary to widespread belief, it is expensive to pursue in a highly competitive marketplace and diluting many retailers’ margins.

    Is the evolution of e-commerce good or bad for retail? For many investors, the natural perception is that the evolution of e-commerce is a highly-profitable, incremental revenue stream for retailers. But that’s the trouble with conventional wisdom. As the late economist and public official John Kenneth Galbraith put it, “The enemy of the conventional wisdom is not ideas but the march of events.”

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    China's Latest Tech Push

    December 8, 2015 4:03 PM by Lord Abbett Editorial Staff

    China, the world’s largest consumer of semiconductors, is moving aggressively into manufacturing them, which threatens producers in Korea and Taiwan.

    Although China consumes half of the world’s semiconductors (see Chart 1), it doesn’t have a single domestic manufacturer among the 10 biggest chipmakers, according to Bloomberg News. Taiwan and South Korea account for the lion’s share of production. But with China’s government pushing to grow its own semiconductor industry for national security and lessen its dependence on foreign technology, recent deal making suggests a new world order may be in the offing.

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    Fishin' Chips: How M&A Is Transforming Technology

    December 1, 2015 5:18 PM by Lord Abbett Editorial Staff

    The $330 billion global semiconductor industry is undergoing historic consolidation, but innovation in some quarters has stalled, say analysts.

    In 15 years of covering the technology sector, Lord Abbett Research Analyst Eric Ghernati has never seen anything like the merger and acquisition (M&A) activity of the last several years. (See Chart 1.)

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    Complexity of Cybersecurity Threats Is Rising

    July 15, 2015 10:15 AM by Rick Vallieres, CFA

    Can "private cloud" solutions mitigate such vulnerabilities? 

    High profile cybersecurity breaches are making headlines and the volume of attacks on institutions is rising as much as 50% per year. Meanwhile companies are turning to new technologies and approaches to defend against increasingly sophisticated attacks (see Table 1). A cybersecurity arms race is under way.

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    Chasing Eyeballs

    March 17, 2015 10:45 AM by So Young Lee

    While media, Internet, and cable companies face a number of challenges, diversifying content platforms should drive some compelling investment opportunities in 2015.

    Just as traffic on the information superhighway has accelerated at a phenomenal pace, so have the challenges faced by media, Internet, and cable companies—but I believe diversifying content platforms should drive some compelling investment opportunities in those sectors in 2015.

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    Research in Action: Why Web 3.0 is the Product Cycle of the Decade

    March 13, 2015 1:05 PM by Eric Ghernati

    New applications combining the cloud and "Big Data" have transformed industries globally.

    Considering how much time people spend on the Internet using multiple devices—chatting, networking, shopping, banking, devouring, and sharing all kinds of content, and the like—it’s easy to see why technology sector figures prominently in various investment strategies.

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    Has the "Internet of Things" Been Overhyped?

    September 23, 2014 12:52 PM by Lord Abbett Editorial Staff

    While few doubt the Internet of Things (IoT) will unleash a new wave of economic growth, the questions now are how much will we spend on building IoT capabilities, over what time frame, and which ecosystems gain (or lose) from this.

    Spawned by the build-out of wireless networking, cloud computing, and Big Data, along with the proliferation of smartphones, the Internet of things (IoT) connects everyday objects so they can sense and communicate with other operating systems, allowing them to be monitored and controlled from anywhere. But some widely publicized projections of its market potential may be over-optimistic, at least with respect to the timing of when we will experience mass adoption of IoT across major sectors.

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    Do Biotechs Have More Upside?

    April 22, 2014 11:56 AM by Lord Abbett Editorial Staff

    Lord Abbett has identified three encouraging trends for the sector.

    Forty-three years after President Richard Nixon launched a national “war on cancer,” millions have died, millions have extended their lives with new and improved treatments, and billions of dollars have been made by investors in biotechnology and pharmaceutical companies on the front lines.  A case in point is the NYSE Arca Biotechnology Index (BTK), which has a high concentration of companies with cancer compounds in various stages of development, is up 295% in the five years through April 17, 2014.

    Is all the good news priced into biotech stocks?  Or do the long-term fundamentals justify continued bullishness?  

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    Welcome to the Machines

    April 10, 2014 11:45 AM by Lord Abbett Editorial Staff

    Here's what Lord Abbett experts are saying about the explosive growth of robotics.

    Google's purchase of eight robotics companies in 2013 and Amazon's demonstration of delivery drones have garnered tremendous publicity, but the trend toward automation has accelerated all over the world.  According to the International Federation of Robotics (IFR), sales of industrial robots have soared since the global economic recovery began in 2009. "Robotics is one of a few technologies that has the potential to have an impact that is as transformative as the Internet," says the Robotics Virtual Organization ("Robotics-VO”), a consortium of major robotics manufacturers and academics sponsored by the National Science Foundation.

    While robots have entered the workforce in increasing numbers, they're also fast becoming part of the investment conversation.

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