Six companies that are shaping the future of data

25,000,000,000,000,000,000 … that’s how many bytes of data is being generated every day… Data, data, and more data… Petabytes of data …

Our phones, our laptops, and every application we are running on them… And, soon our cars, our fridges, our vacuum cleaners, and … will join the clan of data-generators. The situation becomes dire in companies. Millions of applications running… marketing, sales, IT, operations, and manufacturing are all pouring their binary guts out, every single day … 000 101110 0111001 000 101110 0111001 000 101110 0111001

What do intelligent investors do when they hear all the stories about the data explosion? If you replied “Invest in Data”, you are right on!

Six companies that are shaping the future of data

The volume and speed of data generation are so high that you need to use measurement units that are hard to pronounce such as… GIGABYTE (that’s not so hard), PETABYTE (Ok, that’s a bit strange), EXABYTE (hmm) … ZETTABYTE (You made your point! Way too many zeros)… The point is, as the volume of data generation grows astronomically, the demand for data storage grows with it. It’s not only the data that’s in our excel files or phones. It’s our data footprint as we move around, and more importantly the data that the machines generate. That’s every little sensor we are placing into everything we own, from our cars to our athletic clothing, to the digital dust we spread around in our manufacturing facilities… they are all getting connected, and sending bits and pieces of information back to the servers every nanosecond… and, they are just getting started…

Pure Storage operates in enterprise storage market which is expected to grow by ~25% per year in the next 3 to 5 years. As volume of data being generated by businesses, machines and humans grows exponentially, spend on storage capacity grows with it. Pure Storage is a direct beneficiary of such growing trend. The company’s revenue has been growing rapidly, and it has no cash constraints to fund its future growth plans as it wishes.
Intel operates in the semiconductor market, which is expected to grow by 3.00% per year between 2015 & 2020 globally. Operationally, Intel shows a few signs of weakness. It has a positive sales growth, positive earnings per share, with some cash constraints. Intel has many of the elements required to maintain its competitive advantage. Overall, had you invested in the company in the past few years, you would have had periods of growth and decline in your wealth compared to the S&P500 index.
VMware operates in datacenter automation market, which is expected to grow by 23.58% per year between 2014 & 2019. VMware is already a global company and doesn’t have an emerging line of business to drive significant growth. Operationally, VMware is solid. It has a positive sales growth. Earnings per share are positive. The company doesn’t have any cash constraints. VMware has many of the elements required to maintain its competitive advantage. Despite that, had you invested in the company’s stocks in the past few years, you would have had periods of growth and decline in your wealth compared to the S&P500 index.
Micron Technology operates in the semiconductor market, which is expected to grow by 7.57% per year between 2017 & 2024 globally. Operationally, Micron Technology is strong. It has a positive sales growth, positive earnings per share, with some cash constraints. Micron Technology has many of the elements required to maintain its competitive advantage. Overall, had you invested in the company in the past few years, you would have grown your money faster than the S&P500 index.
Western Digital operates in the information technology storage spending market, which is expected to grow by 24.63% per year between 2016 & 2019 globally. Operationally, Western Digital shows a few signs of weakness. It has a positive sales growth, positive earnings per share, with some cash constraints. Western Digital faces a few challenges to maintain its competitive advantage. Overall, had you invested in the company in the past few years, you would have had periods of growth and decline in your wealth compared to the S&P500 index.
MongoDB operates in database software market which is expected to grow by 8% in the next 3 to 5 years. The company has recently went through an IPO. As such, there is limited data available to gauge its operational strength, past returns and its fair share price. Having said that, many early signs indicate of an operationally solid company. A large 4,300 customer base including several global brands and growing sales are a few to mention.

Founder @StockCard.io, Investor, Podcast host @Renegade Investors, Blogger @blog.stockcard.io, Intelligent Investor Facebook Group creator, Published on Inc.com