“New, disruptive technologies are unlocking new innovative companies to grow at speeds not seen before, the American Dream is alive, it is not greed, it is innovation.” — Paul Ebeling
The US Census Bureau has revealed that the number of people starting their own business just surged to its highest mark since Y 2007.
You may not think launching a new business would be high on people’s lists in the middle of this medical emergency chaos. But thanks to today’s new, disruptive technologies, it is easier than ever for the regular American to turn a business dream into reality.
A recent study found there are 41-M entrepreneurs in the US today, an all-time record!
This is very important investor because for the 1st time in history, any American can acquire the tools to cheaply and quickly launch a business from their kitchen table.
Today, 1 need not buy an expensive server to run a website. With the “cloud,” you can rent supercomputers from Amazon, IBM or Microsoft for a fraction of the cost.
You can pay Shopify $30/month to handle all your online needs. Hire PayPal to accept credit cards. Even get basic legal services sorted out by LegalZoom, and hire Avalara to keep you in compliance with complicated sales tax laws.
You now can do this for a couple hundred bucks in a weekend. This is not just about breaking down barriers for small entrepreneurs.
It’s a new phenom that’s reaching up and down the economy, from the self-employed American Dreamer up to the highest ranks of the stock market.
Startups are becoming $10-B giants in a few years, sometimes months. In essence, what Airbnb did was use new, disruptive tech to its fullest potential. Unlike Hilton or Marriott, Airbnb did not build or maintain hotels.
Airbnb’s Brian Chesky and his small team simply registered a domain name, wrote computer code, and built an “app” that could be accessed from any Smartphone. It is the same story with Uber, 1 of the fastest growing companies ever.
Uber went from startup to a $10-B valuation in 2 yrs. It achieved this “hypergrowth” by crisscrossing 2 powerful new technologies: the iPhone and widespread access to fast Internet.
These incredible growth stories are not exclusive to Airbnb and Uber. It is also how game-changers like Square, Slack, Stripe, Venmo, Instagram, Zoom, and Pinterest all got started. They used new technologies to grow into big, viable businesses Fassst.
Just look at what has happened this YTD.
Freelance marketplace Fiverr soared 566% in the past couple of months. Telehealth pioneer Livongo handed out 457% gains since January. Edge computing pioneer Fastly jumped 401% since start of Y 2020.
Real Estate disruptor Redfin rocketed 287% in 2 months. Workhorse Group is up 687% this year. Vivint has exploded 495%.
Even with rising wages and falling mortgage rates, Americans canot afford a home in more than 70% of the country. Out of 473 US counties analyzed in a CBS News survey, 335 listed median home prices more than what average wage earners could afford. Among them are the counties that include Los Angeles and San Diego in California, as well as Miami-Dade County in Florida and Maricopa County in Arizona.
“New York City claimed the largest share of a person’s income to purchase a home, according to the report. While average earners nationwide need to spend only about one-third of their income on a home, residents in Brooklyn and Manhattan must shell out more than 115 percent of their income.
“In San Francisco, residents must spend 103 percent, and in Hawaii’s Maui County, it takes 101 percent. Homes were found to be affordable in Chicago, Cleveland, Houston, Detroit and Philadelphia.
“One of the problems is that lending standards have toughened, and the Federal Housing Administration in March, 2020 has made it even more difficult for many Americans to own homes. Thus, investment money has been leading away from real estate once the American dream even though new and other investment opportunities carry more risks but quicker returns.
“So, where are the potential homeowner monies going – starting technology businesses and being rewarding by their capitalized values in the stock market. Where real estate rents can have a capitalized value of 5 times net operating income and homes are priced based on area land values, the stock market typically capitalizes a technology related business at 25 to 50 times net earnings or in some industries a revenue multiple of 1-5x their annual revenues versus the much lesser and longer term values resulting from real estate, which is based on a ratio of income to finance,” says economist Bruce WD Barren, a Live Trading News editorial contributor.
Tuesday, the major US stock market indexes finished at: DJIA -157.71 to 28679.75, NAS Comp -12.36 to 11863.83, S&P 500 -22.29 to 3511.93
Volume: Trade on the NYSE came in light at 757-M/shares exchanged.
HeffX-LTN’s overall technical outlook for the benchmark indexes is Bullish with a Very Bullish bias.
- NAS Comp +32.2% YTD
- S&P 500 +8.7% YTD
- DJIA +0.5% YTD
- Russell 2000 -1.9% YTD
Looking Ahead: Investors will receive the Producer Price Index for September, the Fed Beige Book for September, and the weekly MBA Mortgage Applications Index Wednesday
Have a healthy day, Keep the Faith!