Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
If there's one thing you can count on from Wall Street, it's repetitious analysis of big tech news.
Take the Amazon.com Inc. (Nasdaq: AMZN) purchase of Whole Foods Market Inc. (Nasdaq: WFM) for $13.7 billion last week.
A steady, predictable stream of stories quoting analysts about the "death of retail" followed the announcement.
Don't get me wrong - that's a big, ongoing story. It's one I wrote about in the past, as recently as May 23.
What they missed is how this is a boon for technology: mobile commerce, Big Data, machine vision and learning, chips, sensors... and especially robots.
Robots already are all over Amazon's warehouses and are a big part of its success.
Now they'll be in Whole Foods' warehouses, checkout lines, and maybe even a part of making deliveries.
You could buy Amazon - and I recommend you do establish a position if you haven't yet - but that'll cost you.
You could buy a robotics stock, but that will only scratch the surface.
Or you could make this one move and get at least double the market's return...
Automation Is Coming
I was excited when I woke up to news of the Amazon-Whole Foods merger. However, I was focused on the logistics and tech angles that financial analysts evidently forgot.
While Amazon picks up the massive list of gourmet items and devoted shoppers at Whole Foods' 460 retail outlets, it also acquired access to all those stores' freezers and storage rooms.
With localized cold storage, Amazon can truly make good on its promise of same-day delivery of not just groceries but also many other goods.
Even better, most of these stores are close to wealthy ZIP codes. I see these folks as the most likely early adopters of "unmanned" deliveries.
Amazon is already pioneering drone-based deliveries. And small robotic delivery vehicles could be next.
Beyond those are the in-house robotics and automation plays. Under CEO Jeff Bezos, Amazon has pushed these two areas like few companies have.
Robotic handlers and sorters could be a huge boon to the grocery sector, by cutting costs and beefing up the notoriously thin margins. As such, the Amazon deal will be a great case study in the value of the robotics revolution. This is a fertile field to be sure.
Research firm Allied Market Research predicts the global robotics market will grow at an average compound rate of 10% through the end 2020, when the sector will have a value of $82.7 billion.
The firm notes that robots are finding use in a wide range of sectors. Auto assembly takes the top market share, accounting for about 39% of sales growth. Electronics follows with 20%.
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.
Michael is my WHIZ. Closely watching his mop stocks.