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Mad Hedge Fund Trader

January 8, 2021

Tech Letter

Mad Hedge Technology Letter
January 8, 2021
Fiat Lux

Featured Trade:

(UNSTOPPABLE FACEBOOK)
(AMZN), (FB), (APPL), (MSFT), (GOOGL)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-08 11:04:052021-01-08 11:42:04January 8, 2021
Mad Hedge Fund Trader

Unstoppable Facebook

Tech Letter

Salacious TikTok ads portraying perceived underaged girls shown to middle-aged men?

Yes, you guessed Facebook’s algorithm correctly.

But it doesn’t matter.

No matter what you throw at Facebook and Big Tech, they will get away with it.

The ability to hone narratives and control our communication channels means they can reroute anything remotely resembling a con and spin it into a pro.

As Facebook has encouraged misinformation to spread, including from US President Donald Trump, they come in when you least expect it to play both sides as they announced they will ban the President from Facebook.

An unruly mob of President Donald Trump's supporters stormed the Capitol to disrupt the election certification process and Facebook has finally banned the US President’s account.

Four people died — one was shot by police, and three died during medical emergencies.

Jake Angeli, a well-known QAnon influencer dubbed the "Q Shaman," seemed to be giving out orders in the Capitol sporting a Viking-like horned fur helmet and shirtless chest.

Google CEO Sundar Pichai called it the "antithesis of democracy" in an internal memo and Facebook removed a video of Trump spreading baseless claims of election fraud. The platform then blocked Trump from posting content for 24 hours.

Ironically enough, Facebook blocked employees from commenting on posts on its internal messaging boards discussing the ban showing how little employees can do in national crises.

Facebook employees also lashed out at Facebook’s lack of speed and aggressiveness in dealing with the situation.

I spoke to several employees at Facebook and they admit in unison that Facebook is an absolutely terrible place to work and executive intimidation is something workers must put up with because it is precisely the working culture in place when they walk in the door.

Even former Facebook security chief Alex Stamos chimed in saying Trump needed to be blackballed from Facebook and Twitter.

Zuckerberg did later send out a note that said, “peaceful transition of power is critical to the functioning of democracy, and we need our political leaders to lead by example and put the nation first.”

Zuckerberg doesn’t really need to say much but stay politically correct because he does most of his speaking with the action and non-action at the helm of the ship.

If you dig deeper, his flatform is utterly disgusting, and investors shouldn’t be surprised by the handling of this event.

Facebook’s handling of TikTok’s ads is one of many examples of its advertising system gone bonkers, and the company's ongoing prioritization of revenue over the safety of its 3 billion users, the public good, and the integrity of its own platform.

Middle-aged men using Facebook are fed a voracious stream of TikTok ads displaying skimpy teenage girls and even if they contact Facebook to stop it, Facebook won’t change a thing.

Besides the subliminal advertising in areas that could lead to predatory behavior, consumers are sold goods they never receive or are lured into financial scams; legitimate advertisers’ accounts or pages are hacked and used to peddle those nonexistent goods or scams; credit card numbers are stolen.

The one constant here is that Facebook doesn’t refund any of this malicious behavior and in fact, encourages it.

Facebook agreed to an implicit pact with scammers, hackers, and disinformation peddlers who use its platforms to rip off and manipulate people around the world.

Prioritizing revenue over the enforcement of policies is beginning to be the legacy of Big Tech.

The Facebook “moderators” are a small army of low-paid, unempowered contractors to manage a daily onslaught of ad moderation and policy enforcement decisions that often have far-reaching consequences for its users.

They are much more worried about losing their $15 per hour job than challenging the powerful overlords at Facebook.

And that’s not the beginning of it; Facebook's ad workers have at times been told to ignore suspicious behavior unless it “would result in financial losses for Facebook.”

Non-enforcement helped Facebook become the preferred platform of unscrupulous affiliate marketers and drop shippers that target people with financial scams, trick them into expensive subscriptions, or use false claims and trademark infringement.

Bought products often never arrive.

Facebook’s “best” practices constitute of looking the other way, even if an account is hacked, and only caring about business if credit chargebacks are threatened.

I have also been told by former Facebook employees that they are instructed to be “more lenient with accounts originating in Russia, Ukraine, and China.”

This episode truly shows why investors should still buy big tech.

They are unstoppable to such an extreme that most people can’t comprehend. Rules don’t apply to them.

And it’s not just Facebook, there are mounting headaches for all these CEOs that won’t affect the bottom line and in fact, offer these corporations a great chance to cut costs.  

On January 4th, 2021, Google workers and contractors announced they were forming a union with the Communications Workers of America.

It’s the latest move in an ongoing fight between Google workers and management, and it could trigger a giant offshoring to cheap labor countries.

If most of America’s supply chain was offshored and never came back, then why can’t tech do it as well?

Why do they need to pay $150,000 to an employee in California when they can hire the same level of talent in Moldova for 20% of the cost?

That proves my point because whatever hurdles are set in front of big tech, they know how to maneuver around and avoid any deep carnage.

If investors know there will always be fix out there, even with the egregious behavior at Facebook, they won’t hesitate to pile into Big Tech.

Washington riots simply don’t matter, and markets took wind of it.

I am bullish the Big 5 of Apple, Facebook, Microsoft, Amazon, and Google.

facebook

 

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-08 11:02:002021-01-10 21:38:39Unstoppable Facebook
Mad Hedge Fund Trader

January 8, 2021 - Quote of the Day

Tech Letter

“When we launch a product, we're already working on the next one. And possibly even the next, next one.” – Said CEO of Apple Tim Cook

https://www.madhedgefundtrader.com/wp-content/uploads/2018/10/Tim-Cook-Oct15.png 433 262 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-08 11:00:592021-01-08 11:41:27January 8, 2021 - Quote of the Day
Mad Hedge Fund Trader

January 6, 2021

Tech Letter

Mad Hedge Technology Letter
January 6, 2021
Fiat Lux

Featured Trade:

(THE INSATIABLE GROWTH OF THE MOBILE BASE STATION MARKET)
(MRVL), (NOK), (KRX: 005930)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-06 10:04:332021-01-06 10:57:11January 6, 2021
Mad Hedge Fund Trader

The Insatiable Growth of the Mobile Base Station Market

Tech Letter

It’s finally time we take a step into the future and move on from this health crisis.

One piece of technology that will help us work from home better or consume data easier on our mobile phone is 5G.

5G is here and tell your friends about it.

There are numerous ways to play this emerging trend but a sensible way to play this faster connection, lower latency, more efficient data transfer, and improved security theme is by buying Marvell Technology Group (MRVL).

This is a company that supplies base station-related infrastructure.

Let's take a closer look under the hood into why the advantage of 5G deployments in 2021 favors MRVL semiconductor firm.

This new era of technology development will be based on a massive buildout, specifically the concentration of physical infrastructure needed for the propagation of network signals.

5G boasts enhanced capabilities when compared to earlier generations of WiFi, it doesn’t even come close and consumers and corporations still have no idea what is about to be unleashed.

It also has one flaw: significantly shorter signal range.

The trade-off means a tower build-out bottleneck en route to full adoption of 5G coverage.

The infrastructure companies are cutting through that bottleneck as we speak.

Around the world, major cities are putting public 5G systems online, and new smartphone lines are 5G enabled.

And as we head into the 5G future, those companies that are fully invested in the boom will stand to gain.

Fifth-generation wireless finally came to us in 2020 despite the crushing external factors that dragged global growth down.

A third-party report estimates that 113 operators had deployed the next-generation technology in 52 commercial markets across the world by September 2020.

To add a little more color, 35 telecom operators reportedly joined the 5G bandwagon in the first half of 2020, as compared to 21 over the same period in 2019.

The deployment of 5G networks is expected to gather more steam in 2021 as many wireless frequency spectrum auctions by governments had to be delayed because of the pandemic.

As I thought correctly, the 5G base station (cell tower) market is expected to expand at a high compound annual growth rate (CAGR) of 33.7% in the future, even though its revenue more than doubled in 2020 to almost $14 billion.

The global 5G base station market could exceed $179 billion in revenue by 2028 as the service reaches more markets.

Marvell Technology supplies application-specific integrated circuits (ASICs) and embedded processors that are used in 5G base stations.

The chipmaker launched an end-to-end 5G platform at the beginning of 2019 to speed up the deployment of 5G infrastructure that was meant to replace expensive and power-hungry field-programmable gate arrays (FPGAs).

That move seems to be paying dividends, as its networking business, comprising 59% of the total revenue, has accelerated/

Marvell's networking revenue exploded by 15% year over year in the first quarter of fiscal 2021, followed by a 23% increase in the second quarter, and an even bigger ramp-up of 35% in the third quarter of last year.

The insatiable growth of MRVL's networking business in recent quarters isn't surprising, as the company is supplying its chips to the leading 5G infrastructure OEMs (original equipment manufacturers).

The Korean Chaebol Samsung (KRX: 005930) announced in March 2020 that it is making base station infrastructure based on Marvell's embedded processors. The Finnish telecom Nokia (NOK) announced in March 2020 that it is using Marvell's processors to power its 5G solutions.

Nokia and Samsung are expected to account for just over 30% of the global mobile base station market this year resulting in a massive revenue boost for MRVL.

These deals are just the tip of the iceberg with regional telecom operators looking to deploy 5G networks and select Marvell's industry-leading OCTEON Fusion-based NAND processors to power their new 5G base stations.

The hot demand for 5G base stations is what keeps MRVL afloat, but the stock has run quite ahead of itself with growing over 470% in the past 5 years and doubling over the course of the 2020 pandemic.

Any dip is an opportunity to buy the stock long term.

5G

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-06 10:02:032021-01-10 20:18:04The Insatiable Growth of the Mobile Base Station Market
Mad Hedge Fund Trader

January 6, 2021 - Quote of the Day

Tech Letter

“If you are a big company, a big website, and lots of users come to your website, you will have attacks, and you have to deal with that.” – Said Founder and CEO of Baidu Robin Li

https://www.madhedgefundtrader.com/wp-content/uploads/2021/01/baidu.png 258 336 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-06 10:00:532021-01-06 10:49:29January 6, 2021 - Quote of the Day
Mad Hedge Fund Trader

January 4, 2021

Tech Letter

Mad Hedge Technology Letter
January 4, 2021
Fiat Lux

Featured Trade:

(SPLINTERNET GOES FROM BAD TO WORSE IN 2021)
(AMZN), (APPL), (TIKTOK), (TWTR), (MSFT), (GOOGL), (FB)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-04 12:04:362021-01-04 12:33:53January 4, 2021
Mad Hedge Fund Trader

Splinternet Goes From Bad to Worse in 2021

Tech Letter

The balkanization of the internet is exploding in the short-term, knocking off the aggregated value of U.S. Fortune 500 companies in one fell swoop.

In technology terms, this is frequently referred to as “splinternet.”

A quick explanation for the novices can be summed up by saying the splinternet is the fragmenting of the Internet, causing it to divide due to powerful forces such as technology, commerce, politics, nationalism, religion, and interests.

What investors are seeing now is a hard fork of the global tech game into a multi-pronged world of conflicting tech assets sparring for their own digital territory.

The epicenter of balkanization is the division between China and the U.S. tech economy with India as the wild card.

This is fast becoming a winner-take-all affair.

Silicon Valley is winning in India due to border conflicts along the Himalayan Corridor.

India took count of 20 dead Indian soldiers felled by the Chinese Army stoking a wave of national outcry against regional rival China.

The backlash was swift with the Indian government banning 59 premium apps developed by China citing “national security and defense.”

The ban included the short-form video platform TikTok, which counts India as its biggest overseas market.

TikTok was projected to easily breeze past 500 million Indian users by the end of 2021 and was clearly hardest hit out of all the apps.

India is the second biggest base of global internet users with nearly half of its 1.3 billion population online.

The government rolled out the typical national security playbook saying that the stockpiling of local Indian data in Chinese servers undermines national security.

China’s inroads in the Indian tech market are set to wane with recent rulings already impacting roughly one in three smartphone users in India. TikTok, Club Factory, and UC Browser among other apps in aggregate tally more than 500 million monthly active users in May 2020.

Highlighting the magnitude of this purge - 27 of these 59 apps were among the top 1,000 Android apps in India.

China dove headfirst into the Indian market with their smartphones, apps, and an array of hardware equipment. Now, that is all on hold and looks like a terrible mistake.

Chinese smartphone makers command more than 80% of the smartphone market in India, which is the world’s second largest.

One of the reasons Apple (AAPL) could never make any headway in China is because they were constantly undercut by predatory Chinese phone makers with stolen technology.

It’s also not smooth saying for domestic Chinese tech as Chinese Chairman Xi reign in the private sector with Alibaba’s founder Jack Ma’s whereabouts unknown as we start the new year.

This is happening on the heels of the Chinese Communist Party thwarting the Alipay IPO in Shenzhen which was posed to become the biggest IPO ever.

TikTok is also being eyed-up for bans in Europe and the United States recently as it constantly curries to Beijing’s every whim by banning content unfavorable to the Chinese communist party and rerouting data back to servers in China.

Chinese tech is clearly the main loser for their government’s “distract its own people at all costs” campaign to shield themselves from the epic contagion of the lingering pandemic.

What does this mean for American tech?

For one, India is strengthening ties with the U.S., being the biggest democracy in Asia, and will be a massive foreign policy loss and loss of face for the Chinese communist regime.

The resulting losses for Chinese tech will usher in a new generation of local Indian tech with Silicon Valley mopping up the leftovers.

Even though the U.S. avoided the carnage from this round of balkanization, the situation in Europe is tenuous, to say the least.

Fault lines will compound the problem of a multinational tech revenue machine and the relationship with France is on the verge of becoming fractious.

The relationship is worsening with the Europeans by a trade deal consummated between the EU and China along with Western European powers such as France, Germany, and Britain looking to add to their tax coffers by taxing big tech companies like Facebook (FB), Twitter (TWTR), Google (GOOGL) in 2021.

This would be a massive blow to not only revenue streams but also global prestige for American tech.

Not only do Silicon Valley leaders see a murky future outside its borders, but digital territories are also getting carved out as we speak domestically.

Amazon (AMZN)-owned Twitch and Twitter have clamped down on U.S. President Donald Trump’s account.

This could quickly spiral into a left-versus-right war in which there are competing apps for different political beliefs and for every subgenre of apps.

This would effectively mean a balkanization of tech assets within U.S. borders and division in 2021 is set to extend itself.

Silicon Valley wants products sold to the largest addressable market possible and that simply won’t happen in 2021.

The balkanization of the internet is now turning into an equally high risk as the antitrust and regulatory issues.

The issues keep piling up, but nothing has been able to topple big tech yet as they lead the broader market out of the pandemic.

Silicon Valley is still subsidized by ultra-low interest rates and quantitative easing by the Fed. If this changes, look for tech to roll over.

Let’s hope that never happens.  

balkanization

https://www.madhedgefundtrader.com/wp-content/uploads/2021/01/US-China.png 396 708 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-04 12:02:342021-01-09 23:57:46Splinternet Goes From Bad to Worse in 2021
Mad Hedge Fund Trader

January 4, 2021 - Quote of the Day

Tech Letter

“Over the next 10 years, we’ll reach a point where nearly everything has become digitized.” – Said Current CEO of Microsoft Satya Nadella

https://www.madhedgefundtrader.com/wp-content/uploads/2020/11/satya-m.png 264 208 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-01-04 12:00:292021-01-04 12:33:08January 4, 2021 - Quote of the Day
Mad Hedge Fund Trader

December 30, 2020

Tech Letter

Mad Hedge Technology Letter
December 30, 2020
Fiat Lux

Featured Trade:

(HOW NEURALINK WILL CHANGE THE WORLD)
(TSLA), (SPACEX), (NEURALINK), (BORINGCOMPANY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2020-12-30 13:04:242020-12-30 14:15:57December 30, 2020
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