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I think tech investors would do well to take a look at Walt Disney Co. (NYSE: DIS).
You know it as an entertainment powerhouse.
But you need to start looking at the "Mouse House" differently.
The Birth of a Wearables Powerhouse
Most investors think of Walt Disney Co. as anything but a tech-focused firm.
After all, this iconic American company is famous for its theme parks, its movies and TV shows, and as the birthplace of beloved animated characters like Mickey Mouse and Donald Duck.
Turns out, Disney is developing a line of wearable electronic toys that will connect to the web. Disney wants to turn its popular movies into an "ecosystem" that can draw in children as tech-focused customers.
Disney believes the new digital toys, which encourage kids to move around, will prove as popular with parents as they are with children. Kids can don Iron Man gloves or Hulk fists and then interact with action figures by downloading narrated stories from the web.
Known as Playmation, the new platform debuts in the fall. If Disney just converts a conservative 10% of its movie receipts into Playmation sales, it could easily generate $300 million in wearable tech revenue.
And I believe this release underscores a big change underway at Disney - behind the scenes, the company is embracing new technologies to grow sales and improve profit margins.
A study last year by Capgemini Consulting shows that Disney is making excellent use of digital formats. For instance, Disney recently unveiled Movies Anywhere, a service that lets consumers discover, buy, and watch films across different devices.
In 2013, the firm's video game unit released Infinity, which allows players to mix and match the company's popular characters. It went on to become one of the top 10 releases of the year, with initial sales of 3 million units. And here's how Disney has embraced data analytics to improve its operations across the board...
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.
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