hey thanks for watching we're coming to you from full global headquarters in Alexandria Virginia I'm Chris Hill here with Jason Moser and Ben Roth thanks for being here guys we're gonna be talking 5g we'll be taking your questions well we've got some stocks for investing in 5g and if you're looking for even more stocks Motley Fool CEO Tom Gardner has put together his list the top stocks for 2020 and a report it's available for members of Motley Fool stock advisor which is our flagship service so if you're already a member go to fool.com slash 2020 you can get the report if you're not a member of stock advisor you can still go to fool.com slash 2020 and get details on how to become a member and get that report top stocks for 2020 Ben let me start with you there's so much talk about 5g I feel like you can't watch a sporting event without a mobile phone company advertising for 5g let me start with the basic obvious question what is 5g I mean 5g is like it's like Nirvana yeah it's it's what everybody's talking about at the moment but I think the best way to explain it is by looking at the current situation right now you have more people with more devices using more data and if I could take an analogy it's almost like you have more people using a single road and that road is getting crowded so you have a couple things you can do you can make the road more efficient make the movement of people more efficient or you could just build a bigger road so 5g is really about building a bigger road is finding a better spectrum higher frequency spectrum with higher bandwidth so you can carry more data it's called millimeter wave technology so you're looking at spectrum on the order of 50 gigahertz so it's way up there in terms of frequency and the problem with that frequency level is that it the bandwidth is really large but it's also very sensitive so it can be disrupted by like leaves by rain so you have to put a lot of different small cells everywhere so it's going to carry a lot of infrastructure spending and that's one of the issues I think with 5g is how much is going to cost it's not something that's going to appear like tomorrow it's going to require 5 10 years of huge capital investments on the part of mainly the telecoms yeah I mean you probably are gonna be hearing about 6g within the next year and they're not gonna really 5g fully rolled out yet because as Ben mentioned I mean it is something that's gonna take a number of years to actually roll out and I mean really that's just it right it's the fifth generation of wireless technology it's giving us our data at faster speeds and when you think about all of the stuff that we're doing with our smart phones today whether it's entertainment you know whether it's just our day-to-day living I mean we are consuming more data than ever before and and there are more devices out there that are being connected to all of these other devices you know we talk about that Internet of Things the bottom line is you got to make that road bigger like Ben said and that's the upper with 5g but I'm serious I mean if we're talking about 5g today it's gonna be 6g soon and then it's gonna be seven she's gonna keep on going until eventually we can just snap our finger and have everything at an instant the cable companies are already talking about at ng oh and that's you know huge one other thing they're trying to top us here right exactly is there any downside to this I mean every once in a while I'll see something where people are legitimately concerned about health impacts is is that something to be concerned about or is that just I don't want to say conspiracy theory talk but it is that overblown I guess is my question probably overblown but we'll probably know more about that in like 30 years I mean I have read through scientific journals to investigate this more and understand the reality of the situation and then we are going to have we have more cells mounted in more places to try to shorten the distance for this data to travel and so it's a fair question or these radio waves going to affect us are they are they gonna harm us and you know and in the bottom line is we just don't really fully know right now there's a lot of data out there and the general consensus is that no it seems like we should be okay but I mean we're talking about 10g at some point here I mean at some point or another it does seem like maybe that that power could be something that we'd have to keep a closer eye on but I feel like right now we just we're gonna have to wait and see I don't know about the health impacts but I think if you look at like some of the the small base station to small cells that are being set up all over the city's it may not be very aesthetically pleasing so you're gonna find these things popping up in the middle of the road and it's got to be there because it's got to be at a certain position based on the configuration of the buildings so it may cause some you know some anger from the people that are living there it reminds me of one way I lived in Cairo Egypt for a few years and this was back in the early 2000s in the Cairo skyline at the time was known for two things first and foremost a lot of the buildings were unfinished secondly everybody had satellite and everybody had multiple satellites and so when you saw the skyline it was just littered with satellite dishes all over the place and yet to your point you aren't you're gonna see a lot of these types of things and unless they can can can a flage right you see a lot of these towers that are being made to look like trees now some look better than others but yeah it could it could look a little bit uh aesthetically displeasing I guess for the untrained eye so let's get to some of the industries that this is gonna have any impact on because obviously as you said Ben I mean you've got the telecoms they're doing the investment but they have a natural interest in that what are some other industries that investors should be looking at when thinking about the rollout of 5g and who it's going to have a positive impact on well so I do want to go back to the telecoms and also the cable companies because there is an idea out there that if 5g comes you have these fast internet speeds delivered over wireless what's going to happen to your cable broadband subscription that you have at home well you even need that in the next five ten years and what does that mean for the cable companies I think if you look at the US infrastructure there's a strict division between the companies that own the broadband infrastructure those are mainly the cable companies and then you have the wireless companies like a Verizon or a t-mobile if you look in Europe those are basically the same companies and I think that's going to happen over the next few years where you see a consolidation between the broadband the wireline the fixed broadband and the wireless because the capital investments that have to be made by the telecoms are very significant and if you look at their balance look at for example AT&T they're not in a very good situation in terms of their balance yuj amount of debt if you look at how much dividends they pay out the amount of money that they have left over for investing into 5g I would say max realistically speaking it's about 10 billion a year and then they have that huge debt load and declining TV business as well so all of that means that there has to be some kind of consolidation between those two sectors that'll be very interesting to watch I am a very much a detractor of AT&T situation so the winners and the losers are definitely there and I think a couple of the wireless players I think are in very difficult this fancy way saying he's bearish on 18 what do you think in terms of other industries I know that you're big for among other things the healthcare space telehealth you think back to the Super Bowl and one of the commercials the really that sort of opened my eyes to 5g and its impact beyond just phone companies Verizon had a commercial that was about the impact 5g could have on first responders that it could have on hospitals and telemedicine yeah I mean I it really is it's almost that the better question might be to ask what industries will does not impact because it does have the potential to impact virtually every part of our lives I think just generally speaking the way this has been communicated to us is consumers expect it to be just something that impacts our lives immediately we're gonna be able to download information more quickly than ever before and it's gonna make us we're gonna be able to move fast or we're able to do more things it I don't I think that's probably a little bit overblown I think it'll be a little bit more modest the difference that we see but I mean when you look at the infrastructure plays here I mean the Internet of Things and with more and more devices connecting I mean it could be everything from cars talking to each other as you mentioned first responders things of that nature that that perhaps helps cities function better help buildings communicate with each other right I mean they're there all sorts of different ways this could play out definitely you're gonna see the chip companies I mean I talked about momentum before here on this show and you know that's that's a company that that 5g their big tail ones there again hardware we see in Apple's most recent call a few questions on 5g they're not gonna be rolling that 5g capable phone out yet it's gonna take a little bit of time but but certainly a lot of hardware companies are gonna benefit from this as the capability becomes available I was gonna say it seems like if you're in the business of making devices I think if you're a company like Apple not that Apple needs any help per se but it seems like Apple is point poised to benefit here I think so and I mean the questions on the call were based around when you roll this capability out how much are you gonna be able to raise prices and Tim Cook is very good about saying you know what we're not gonna comment on things that don't exist yet right or at least they don't exist as far as we're telling you so it will be interesting to see from the device makers perspective what kind of pricing power that affords them that might be something that really all kind of boils back down to how we as consumers perceive the value here of 5g again I I don't think it's gonna be like you hit the switch and think the entire world's change because now it's 5g I think it's gonna be a little bit more modesty and I think that is going to be something that keeps up with maybe on the pricing that some of these hardware companies can implement I think it's definitely gonna be a gradual transformation but the most obvious industry is that I think will be affected our gaming and also the automobile the self-driving car industry so you're looking at companies like alphabet which are exposed to both I mean the cloud gaming possibility I think is huge the projections for the number of gamers that are going to be playing these streaming services it's pretty Stratton pretty staggering so companies like Microsoft and alphabet are definitely poised to benefit yeah an immersive technology right we talked about AR and VR mixed reality all the time that is in line I think with with Ben's gaming example there we're seeing immersive technology really start to gain some traction and one of the biggest drawbacks one of the biggest barriers or hurdles that they needed to clear has been latency which is just the delay and that transfer of data and 5g should in theory bring that latency down in though it's gonna result in a lot more devices connecting to each other and we have to keep that in mind it's gonna be interesting to see relatively speaking how much bigger this road gets considering all of the devices that will be coming online it just might not be as profound as we you know are hoping yeah all right we're gonna be getting to your questions in just a moment but first be prepared to take a couple of notes because we've got a couple of stocks to add to your watch list if you're looking to invest in the 5g revolution and Ben let me start with you safe to assume that AT&T Verizon those stocks are not on your watch list for 5g Verizon possibly AT&T I think is in a very difficult situation why is that well first of all they made a terrible acquisition with DIRECTV so they are in the traditional TV business and when they when you're in but when you're 18 18 you're investing in 5g you're actually helping the development of saying Netflix or cloud gaming all of that is competition for the Direct TV the traditional TV business so it's as if one part of their company is competing against the other every dollar that they invest into 5g actually in a way helps the competition and weakens their TV business and they have a ton of debt oh that's bad what do you got for a watch let's talk though so my stock is rather boring I would actually choose Comcast and I would it's more of a consolidation play where I see the broadband and wireless consolidating I would even say that there whatever monopoly position that they have locally would probably get stronger with that kind of consolidation and I think going forward they'll have some considerable pricing power you think Comcast will take some of those additional profits and invest them in customer service yeah if history is any guide probably are you I had a bad experience with Comcast mother buy I don't use it though I have only I I've seen the responses on Twitter and it just ain't nice Jason what about you yeah I'm gonna I'm gonna go with Tara Dino company I added this to the watch list of our augmented reality service here late last year Tara dine is in the business of automating repetitive manual tasks as well as electronic testing is I think the company put it best on the website when they say it's a good bet that every device you use has been touched and enhanced by Tara Dean during its assembly or test these devices are reshaping markets where innovation is assumed and failure is not an option and so again as we see more devices coming online Tara dawn plays a big role in the testing of those devices and in the components that make up those devices as well as the infrastructure that's being built out and we talked about this big expensive build-out Tara Dyne is a part of testing that making sure it all works and so to me there is a big opportunity there because this is going to be something that stretches out over a long period of time you can't go through a Tara Dine call without hearing I'm talking about 5g at least a few times and then a little bit of a bonus pic I've talked about Saran's before it you mentioned something about automated cars self-driving cars and cars are gonna be connecting and talking to each other more and sarin spills those automotive cognitive assistant solutions the neat part about the business is it's it's siloed into two parts right they have water called edge products and those are actually the end car products but the the connected services side of the business which is really the cloud part of the business that they work on as these cars become more connected and we start being able to do more inside those automobiles sarens is playing a big role in that as well all right if you're enjoying the video please consider giving us a thumbs up it helps other people find videos and we like making videos like this so thanks for helping us out and again go to fool.com slash 20/20 and get Tom Gardner's report his top stocks for 2020 let's get to the questions coming in from viewers a question from Pacific spice who asks what are your thoughts on semiconductor companies like Broadcom and how 5g might play a role in their stories well I think that a lot of those big types of semiconductor the one I always go back to is Qualcomm you know they are big companies with a lot of resources and they're playing a big role in this development the flipside is that's not a secret a lot of that stuff has been brought forward into the share prices today so I think they're wonderful income plays I wouldn't look at them necessarily as stocks where you would recognize some serious capital appreciation but they do play their role in this value chain and shouldn't be ignored yep another question is there a moment that will signal to you when 5g has arrived rather than being a technology that is coming soon great question as investors we always love signals whenever we can find them to the point you made earlier Ben I mean this is not gonna be like flipping a switch and all of a sudden 5g is here but is there a point at which you feel like you're gonna know okay it's it's arrived enough we're seeing the impacts not just for the businesses but for us as investors in the stocks right I would say sort of the at that point would be when the cloud gaming the streaming services reach a certain tipping point where they reach a certain scale that would be one indication the other of course was connected cars I think and that would also be a big indication Steve asks how might 5g touch REIT stocks like equites a data center and CCI a cell tower in the near future real estate investment trusts built around whether its data centers cell towers interesting questions yeah I mean I think that all really depends on the actual read right it's about getting a reef that's working in that in that space and a couple that come to mind it believe these are REITs if I'm not mistaken right American Tower and crown castle which are the tower companies that that we we have under covered here at the full those are the two that stand out as a couple of obvious beneficiaries but again I mean I think anytime you're talking about REITs that really does boil down to who's managing that Reed and the opportunities that they find in that real estate space real estate investing is hard and so you know the Jockey play is is really something you got to take into consideration there yeah I think one thing we have to remember is the existing infrastructure and the cell towers the the fiber that's already been laid is very important to the 5 G's story so it's not going to replace 5g is not going to immediately replace all that infrastructure it's going to work together with it and then at a certain point there's going to be much more independent 5g related infrastructure in the future one view are asking the way you're talking about it it seems like companies taking advantage of 5g are better place than the companies building 5g do I have that right I think so yeah I generally I mean you can kind of look at it as the commoditization versus what everybody's gonna do with that infrastructure right we talked about being able to utilize the networks and in monetize them over long periods of time I mean you look at something like a utility right an electric company of water company important roles that they play right not always the greatest investments because they always have to be loaded down with a lot of debt to continue moving forward and invest in that infrastructure to keep accommodating our growing society our growing country a growing world but you see a lot of companies out there doing a lot of great stuff with that electricity in that water and I think 5g probably falls into the same category absolutely just look at Netflix I mean they're gonna benefit pretty significantly almost 5g but they're not really laying down a single dollar for the capital investments but they'll benefit even more than the company's nothing else they benefit from not having to outlay the cash yes a couple of people asking do you guys have good examples of where we can look for 5g in action already I mean I mentioned Verizon ville earlier I mean they've they've committed to putting 5g into some NFL stadiums so in a highly localized level that's one place yeah I can't say I have any personal experience with 5g connection at this point so I've got nothing I'm sorry though are there any cities that have 5g now that's another good question I don't know specifically but we can certainly find that out yeah yeah Dylan our producer points out Verizon is in Chicago and Minneapolis so so if you're in Chicago or Minneapolis you know let us know how that's going a couple of Twitter polls out there just bow yes or no is it worth it or not people in those areas just vote when it comes to and this is me as when it comes to sort of whether it's the entertainment industry augmented reality VR that sort of thing or the telecom space is this the most interesting thing going on in your mind as an analyst or is there something whether it works with 5g or is a ripple effect from that that you find as if not more interesting than 5g itself so I mean that just answering for myself I mean I'm more interested in the companies that are doing things with the 5g and so as as viewers and as you all know I mean I'm knee-deep in immersive technology here with our services and and so for me it's more about these companies that are using virtual reality and augmented reality whether on the enterprise or the consumer side certainly 5g is a tailwind for those businesses as it makes AR and VR and M are more usable more user friendly so I would say that's probably where my focuses is is more today than actually on the 5g network itself and about you I would say it's all related so if when you're talking about AI when you're talking about cloud computing and 5g all of that is related all of that bills on the other so you can't really talk about one without talking about the others question from Hindi hope I'm pronouncing that correctly two questions is there a stock that intersects a our VR and 5g and follow-up question is there a 5g stock that pays dividends looking to get paid got a respect of the dividend stock comcast P I I would say ARV r5g intersecting I mean there's a lot of great examples out there I mean I think some of the behemoths Microsoft Facebook alphabet even Amazon I mean those are companies that are utilizing all that technology together today but we're gonna see a lot of smaller more under the radar companies coming to the surface here over the next few years and that's what's really exciting as investors is looking beyond those obvious plays and finding the new players in the space that are doing of those opportunities then you mentioned self-driving cars earlier do you look at 5g as something that is crucial to the adoption of self-driving cars like it seems like we've been talking about self-driving cars for years now they're not ubiquitous in the way that certainly you go about five eight years there were people saying oh yeah by 2020 you know maybe not naturally but certainly in certain cities how crucial is 5g to all that well I think Elon must said that it's gonna happen in 2020 and I'm assuming it's gonna happen without 5g so it depends on if you were Tesla or if you're not I think for the general industry I think it's a huge driver of of that technology whether or not tests that could achieve it without those kind of speeds and that for the 5g technology that's something to watch out I wouldn't I wouldn't underestimate him I wouldn't say no but generally speaking I would say it's it's it's quite important a couple of people asking what are your thoughts on Nokia a I tell you I haven't looked at Nokia for a very very long time and fast as it 100 it's not it's not one that's been on our radar for a long time so I would have to dig back in to really give you a that up-to-date opinion on that one I mean hallway is banned here so you know with the ban of Huawei you're assuming that it's gonna help Nokia but I would put that closer to the Qualcomm those kind of companies that are gonna provide the materials it's not always the best investment a question from Lauren who asks do you have any ideas of the most seemingly unrelated industries where 5g could be a tailwind logistics payments telework a great question sort of some out-of-the-box thinking they're unrelated I mean yeah I mean tell us any loan relate I mean you look at something like zoom for example the not not you know the video conferencing company we're talking about and as more and more people decide to telecommute work from home or whatever I mean 5g in theory should should help make that easier certainly payments I mean you should see faster you know faster faster a payment payment acceptance I mean you should see everything speed up in theory a little bit if not more so I mean I don't there's gonna be one specifically that like I mean the question is really what industry is not right I didn't buy five years and I mean I was combing through the notes of Rex more when he was at at CES here in Las Vegas earlier in the year and he had a really interesting observation he's Deva everywhere you walk around I mean they had 5g it and virtually every booth there that was the headline in on the one hand he thought you know what this is movor selling this is this overhyped because is it really going to impact all these businesses the way they say it will maybe maybe not but you could also see you could also see it being perhaps a little under hyped as well because we don't fully understand how far it could reach well Lauren's question reminds me a little bit of the stocking you mentioned Ben because you think about an industry like logistics which is pretty unsexy crucial to our economy but pretty unsexy pretty boring you know but a business like Comcast for all the jokes about customer service I mean that's a stock that has rewarded shareholders for a long time it has and I think it's really underestimated by a lot of the market a lot of investors I think it definitely has a bad reputation but yeah I'm a bulan on Comcast alright we'll wrap up there been raw Jason Moser thanks for being here guys thank you thanks everyone for watching thanks for giving us a thumbs up on the video and again go to fool.com slash 2024 Tom Gardner's top stocks for 2020 for everyone here at the Motley Fool I'm Chris Hill thanks for watching we'll see you next time with financial challenges checks and balances when things get tough do you do it for money or do you do I know a cheapskate always has a headache trying to get something for free none more wise



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Top 5G Stocks to Buy Now!