Talk about high stakes. Four young technology giants are fighting for the most important and valuable commodity in the world. The bigger your slice of this commodity, the closer you get to ultimate web domination.
This man has a dream. A big dream. His dream is to make a ‘vital’ resource available to everyone in the world.
His mission website – internet.org – makes his dream seem philanthropic. His dream is to help farmers, students, patients, everyone on the planet. To help them share knowledge.
His dream is internet access for everyone. The man with the dream is Facebook founder Mark Zuckerberg.
The true intention behind his dream is stated on internet.org’s home page: “Making internet access available to the two thirds of the world not yet connected.”
Facebook (Nasdaq: FB) wants to increase its subscriber base and inch closer towards web domination.
Facebook knows that only 1 billion of the earth’s 7 billion people currently have mobile phones, but 80% of the rest of the population lives within areas covered by 2G or 3G mobile web access.
Every tech company knows that data means power.
Facebook purchased WhatsApp for $19 billion not because of its 55 employees, but because of its 450 million (older or aging) users.
Facebook just celebrated its 10-year anniversary and may feel too old, too old for the future. According to Zuckerberg, WhatsApp will make Facebook more attractive for younger users.
WhatsApp is the biggest acquisition since AOL and Time-Warner in 2001. To put this into perspective, Facebook paid $345 million per WhatsApp employees and $42 per WhatsApp user.
That’s a lot of money, but to add one more perspective, Facebook shareholders currently pay $141 per registered Facebook user.
Facebook sent a clear message: It wants to dominate the internet, but it is not alone.
Google’s Race for Web Domination
Google’s Android is the world’s most popular smart-phone/table OS. Google wants to extend the reach of Android into other areas, like home, auto and healthcare as the acquisitions of Nest and Boston Dynamics (producer of military robots).
No other tech company is as diversified as Google (Nasdaq: GOOG).
Apple’s Race for Web Domination
Apple (Nasdaq: AAPL) used to be known for devices like the Mac and iPad. It briefly dominated the digital market with apps, but that’s no longer enough for web domination.
Apple is looking for the next big hit. Possibly in cooperation with Tesla?
Amazon’s Race for Web Domination
Amazon started in 1995 as an online bookstore. Today Amazon (Nasdaq: AMZN) is a specialist for everything bought and sold digitally.
Like its competitors, Amazon wants to tie users to its platform. Kindle, its own brand of cell phone and packages delivered via drones. Amazon’s founder Jeff Bezos is a visionary without borders.
Facebook, Google, Apple and Amazon make up 27% of the Nasdaq 100 and Nasdaq 100 ETF (Nasdaq: QQQ), so their successes and failures certainly stand to impact the investing masses.
What About Internet for Everybody?
Pre-internet customs such as having dinner with family, talking (actually speaking) to the person standing next to you, and being able to enjoy your favorite pastime without getting interrupted by your boss weren’t such a bad thing either.
But, according to Zuckerberg, “the problem is that those people, who have never accessed the web, don’t know why it might be useful to them.”
Yes, the internet is useful, but it’s not a life-changing force for the better as internet.org would want you to believe.
How will the battle for web-domination effect the stock market in general?
Here is a full 2014 forecast for the S&P 500 NYSEArca: (SPY): S&P 500 2014 Full-year Forecast
Simon Maierhofer is the publisher of the Profit Radar Report. The Profit Radar Report presents complex market analysis (S&P 500, Dow Jones, gold, silver, euro and bonds) in an easy format. Technical analysis, sentiment indicators, seasonal patterns and common sense are all wrapped up into two or more easy-to-read weekly updates. All Profit Radar Report recommendations resulted in a 59.51% net gain in 2013.
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