As we always keep saying, identifying opportunities that might seem unlikely now, is often the key to success with conventional or online stock trading.
We’ve heard of the groundbreaking Pokemon Go mobile game app. The Pokemon Go craze could be hugely beneficial for a few tech companies out there, according to analysts at Motley Fool. Pokemon Go is based on characters from Nintendo (NASDAQOTH: NTDOY) and is created by Niantic Labs which is a company spun off by Alphabet (NASDAQ: GOOG). But Alphabet continues to be an investor in Niantic Labs.
We saw that Nintendo’s stock has soared following the news of Pokemon Go. And to register for the game, players need to do it through Google accounts. With monetization opportunities present in terms of local businesses or Pokestops during the course of the game, it is clear that Alphabet has quite a prominent role to play in the success of the game.
Unlikely Stocks That Could Hit the Sales Jackpot
However, there are specifically a few companies that analysts believe will benefit from this game.
Amazon (NASDAQ: AMZN) may be the last name that comes to mind when you think of beneficiaries of the game, especially since the virtual items that need to be purchased to enhance the game experience have to be acquired directly through Niantic marketplace. That means third-party merchants aren’t needed and don’t stand to gain anything.
However, Amazon’s advantage and indispensability could come through the hardware side:
- It is clear that Pokemon Go will be addictive. Not only that, the app consumes a good deal of power.
- So, the more people keep playing this game day in and day out, the more the battery could run out of power.
- So players may need portable battery chargers to carry along with them as they leave home to start their day. And they’d need an online marketplace to grab them from.
That’s where people will need Amazon. Sometimes they may want to upgrade to better smartphones offering them longer batter lives. In other words, the game could raise the need for hardware accessories which would enable Amazon to earn some great revenue.
Caching in on the Rush for Data Plans - Verizon and AT&T
As much as the need for hardware would be the need for cost-effective but high speed Internet data plans. That’s where service providers such as Verizon (NYSE: VZ) and AT&T (NYSE:T) come in. Most people would be playing - and indeed it’s intended to be played - while walking through the pedestrian paths or negotiating bus bays or tramways. So players won’t always be using the Wi-Fi connectivity. There could therefore be a rush to buy limited data plans. And AT&T and Verizon are providing individual and shared data plans that are capped.
Users would also be consuming a significantly greater amount of data than they used to before. So mobile phone bills could get bulkier, which means there’s a lot of revenue coming the way of these mobile phone services. These two providers have also stopped subsidized smartphone sales and are rather financing smartphone purchases through monthly installments. And Pokemon Go is an app that isn’t dependent on Wi-Fi alone for transmitting data, and data plans are therefore set to soar in demand with these two major service providers in USA standing to gain the most.
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