Over the past several months, I have discussed the importance of various 5G stocks to buy. Of course, such a notion is nothing new. This latest telecom innovation represents a paradigm shift within the industry. Major players and even government bodies have pushed for 5G integration. But to truly understand the phenomenon behind 5G stocks, we should look back in time to the 4G upgrade.
It may seem like a lifetime ago. But nine years ago, the first 4G handset hit U.S. retail stores. Back then, we witnessed the same challenges that we must address today; namely, the lack of viable networks.
However, the massive increase in data transmission speeds made efforts to overcome the challenges worthwhile. For instance, some early 4G networks download speeds of 100Mbps, substantially greater than an average 3G download speed of 2Mbps. That’s the allure of 5G stocks.
Moreover, think about the amazing technologies that either sprouted or were improved via 4G’s introduction. For example, we take for granted today that we can hail a ride through Uber (NYSE:UBER) or Lyft (NASDAQ:LYFT). But the viability of this platform was really only possible through the 4G network. The same can be said about mobile streaming on services such as Netflix (NASDAQ:NFLX).
In other words, 5G doesn’t just offer an industry from which to pick stocks to buy. Instead, this technology enables other technologies to flourish. It’s a force-multiplier, one that comes around only once every several years. For the full story go to investorplace.com.