Experimental innovation

Technology leaders are paid to be visionaries. It is often their ability to innovate that propelled them to greatness in the first place. But how does this translate to an investable company and how can investors distinguish between a flight of fancy and a genuinely great idea?

Shortages across the supply chain

Staff and parts shortages are weighing on businesses, affecting all sectors, and technology is no exception. In the longer term though, could this also provide a boost for technology investment?

To chip or not to chip

This update from Silicon Valley looks at the push and pull between those companies making their own chips and those buying external chips. The implications of China’s and other nations’ regulatory crackdowns on some of the largest tech firms are also discussed.

Streaming & exploring

In this latest update, attention is focused on the business of streaming, the threats faced by the industry and potential solutions. Also, space travel is more science fact than fiction now, but is it whimsical or of real benefit to the world and humanity?

Working it out

It is becoming increasingly difficult to recruit skilled staff. New generations of workers have a different mindset and expectations of hybrid working patterns post pandemic. Walter Price looks at how technology may be key to providing the solutions for businesses.

Optimism versus pessimism

There are many forces at play in the financial markets today – the push and pull between these forces mean even strong results for many tech firms are being met with caution. But, the long term drivers for the sector haven’t diminished.

Does recovery change the outlook for technology?

As the global recovery has gained momentum, high growth sectors that did well last year have pulled back, with investors worried about the potential effect of higher inflation. However, technology is a diverse sector with plenty of opportunity regardless of this changed climate.

Supercomputers and AI

Walter Price turns his attention to application of AI to data, how this can make processes more efficient and in turn companies more profitable. To participate cost-effectively though requires data to be in the cloud, further driving adoption of cloud infrastructure and services.

Breaking up – is it hard to do?

How vulnerable are the largest tech companies to being broken up? Walter Price gives his view on how likely this might be under increasing scrutiny from regulators. Also under the spotlight is technology’s lasting legacy as a result of the pandemic.

A winner at last

Joe Biden campaigned on a platform of stimulating the economy after the Covid-19 shock, with a new focus on green energy and infrastructure. We look at how technology may fare under the new administration and also in the face of greater scrutiny for the largest firms from regulators.

Tailwinds and Headwinds

In this latest Investment Insights we look at what caused recent wobbles in technology stocks, as well as M&A activity, benefits of 5G and looming legislation.

Exceeding expectations

Walter Price looks at what’s emerged from earnings season, how the ‘new normal’ continues to drive tech through increased productivity and Apple hitting a $2 trillion valuation. Rounding out – what do US/China tensions on tech and security herald for the future of the internet?

Driving electric

We take an updated look at electric vehicles in light of new government stimulus packages around the world – all eyes have been on Tesla over the past year as its shares have risen fast. India is moving online at an incredible pace – this has piqued the interest of some of the big tech players.

Surprising strength

Walter Price reflects on strength of technology companies through the current challenging times. He also looks at environmental factors – lockdown has given a glimpse of a potentially less polluted future. Finally contact tracing is drawing on the tech giants and US/China tensions re-emerge.

Investment management in lockdown

Walter Price chats about investment management under lockdown conditions. Plus, while the current environment seems to be helping some tech firms to flourish as demand for their services explodes, Walter cautions against seeing anyone as a particular winner. Finally, ‘what comes next?’

Coronavirus and beyond

In his latest update, Walter Price looks at how Covid-19 is impacting on the technology sector – which companies are struggling, which have benefitted – and what might a recovery look like? Although now overshadowed by coronavirus impacts, there is also the small issue of a US election looming.

A changing competitive landscape

Against the backdrop of 2019 – where technology market leadership shifted markedly – Walter looks at the changing competitive landscape for technology companies, illusory profits for tech unicorns, and a revival in semiconductor manufacturing. He also turns the spotlight on governance in the sector.

European launch of the ‘Gigafactory’

A new ‘Tesla Gigafactory’ is on its way to Germany – what might the future look like for the car industry there. We also look how the major social platforms are approaching political advertising and, finally, how does the team separate a good idea from a good business in the evolving world of tech?

Corporate confidence, as seen by the technology sector

Walter Price gives his outlook on the varying levels of business confidence across the technology sector in light of mixed economic indicators and financial market uncertainty. Walter also discusses sustainability, plus the next generation of cloud-based security companies come under the spotlight.

Vision of change

In his latest update, Walter Price looks at some of the technology sector’s visionary leaders and how they strive to stay ahead of consumer and market trends. Walter also reviews the status of the so-called ‘legacy businesses’ and how they have fared in their transition to cloud computing.

A dovish Fed

In his latest update, Walter Price considers US monetary policy, how the US has become more sensitive to interest rate rises and how this all impacts on investors. Walter also shares his thoughts on other topical issues, including 5G.

Huawei and the trade war

Against the backdrop of ongoing trade tensions between the United States and China, this month’s update focuses on Chinese mobile giant Huawei and its aspirations for future domination.

Earnings and the economic landscape

The fourth quarter earnings season is in its final stages. It came amid a difficult backdrop: tariff negotiations with China are ongoing, the US government has only just emerged from a protracted shut-down and the global economy appears to be slowing.

Labour displacement

Technology is disruptive. It can render old industries obsolete, and bring new industries into existence. Naturally this has frequent - and sometimes controversial - consequences for the labour market, but historically, where one industry has faded, another has often emerged to to take its place.

The online advertising boycott

Recent weeks have seen considerable controversy around online advertising. Google’s European boss was forced to apologise after adverts from companies and government agencies appeared next to extremist content on YouTube.

Messaging apps

The world of messaging is more exciting than it initially appears: although messaging apps are ostensibly just a means to communicate with friends, they offer advertisers a means to target an otherwise elusive younger demographic.

Many happy returns

Christmas may be long gone, but the results from the 2016 Christmas shopping season are starting to emerge, and with them comes a clear picture on the winners and losers.

The state of e-commerce

It seems pertinent to discuss e-commerce as the holiday season is here. Online retailing has long been a growing trend, but the rate of growth continues to surprise.

The Trump Aftermath

Much like the Brexit result, the polls were wrong in the US Presidential election, and Donald Trump is the next President of the United States. What does this mean for technology stocks in particular and stocks in general?

Ericsson vs. Huawei

The shifting mobile market claimed another scalp last month as Ericsson reported a slump in profits. The Swedish telecoms equipment maker blamed rising competition and said it would continue to cut costs, but its problems are part of a wider phenomenon...

Apple's EU tax bill

Apple’s EU tax bill Apple attracted headlines not solely for the launch of its new iPhone 7 this month, but also for an eye-popping €13bn tax bill from the European Commission. The EC ruled that the ‘sweetheart deal’ struck between the Irish Government and the US tech giant was illegal.

Brexit: a perspective

Inevitably, we need to discuss the UK’s historic decision to separate from the European Union. The technology sector is unlikely to feel as direct an impact as some other sectors...

Technology builds new markets

One of the key differentiating factors of technology – and why it is such an exciting place to invest – is that it has the power to create new markets.

Reasons to invest in technology in 2016

These have been a turbulent few months in markets, and technology has not escaped the rout. In spite of the stabilisation seen in March and April, it has been an unnerving period for investors.

Artificial intelligence, views on China and FANG valuations…

Artificial intelligence plays to some of the greatest fears about technology: A world where we interact with machines, rather than each other; where ‘chatbots’ solve our problems rather than people.

Is the tech sector better-placed to deliver structural growth over the long term?

Investors the world over are worried about growth. Is China slowing? Is the US slowing? And if so, how severely? The technology sector may be better-placed over the long-term to deliver structural growth, but it is not immune from these concerns.

Key themes for 2016

Technology was one of the clear winners in 2015, amid a generally lacklustre year for stock markets. The Nasdaq finished the year nearly 6% ahead of the wider S&P 500 index. However, the strength has been confined to a few key names, the so called ‘FANG’ companies.

The common unicorn

Originally named for their rarity, technology ‘unicorns’ are now as common as pigeons on Wall Street. From Airbnb, Dropbox to Pinterest and Uber, there are an increasing number of companies hitting the $1bn valuation mark in the private market (the qualifying point for a ‘unicorn’).

Markets rattled

These have been tricky times for investors in all sectors, and technology has been no exception.

Chinese stock market in crisis

The domestic Chinese market has been in meltdown since the Government announced short-selling restrictions. This is obviously a concern. We have around 5% of our portfolio in China, albeit in Hong Kong listed shares rather than the ‘A’ Shares market.

What makes a valuable brand?

Forbes has released its annual list of the most valuable brands. It is striking how many technology names feature on the list - six of the top 10 brands are technology groups.

Wobbling bond markets and the ‘bond proxy’ phenomenon

A June rise in interest rates now looks increasingly unlikely, with some commentators believing the Federal Reserve may defer into 2016. Nevertheless, bond markets are wobbling and the issue of interest rate rises continues to influence stock markets. The technology sector is not immune.

Introducing the Apple Watch

Pre-orders for the much-hyped Apple Watch open on the 10th April. Those without the $10,000 for the gold-and-sapphire version may be more tempted by the basic Watch Sport, which starts at $350.

The earnings season – the good and the bad

This has been a volatile earnings season, polarising into the good - which have done extremely well – and the bad, which are now facing serious questions about their sustainability.

Outlook for the technology sector in 2015

Walter Price, Manager of Allianz Technology Trust, provides his outlook for the technology sector in 2015 and reviews the top technology trends of 2014.

The connected car

There is almost nothing that illustrates the pervasiveness of modern technology better than the development of the connected car. A few short years’ ago, cars were a technology-free zone, and yet now technology is promising to transform the driver’s experience and improve road safety.

Semiconductor sell-off: a time to panic?

There has been a notable sell-off among semi-conductor stocks this month, enough to drag the Nasdaq lower and raise fears of a wider slow-down in the technology sector. The catalyst for the share price falls was a profit warning from Microchip Technology, which cited weaker demand in China.

Amazon drones

Amazon’s director of UK Operations said recently that all the group’s deliveries could one day be made by automated drone. While the concept sounds space-age, the technology is already well-progressed.

New brooms

Angela Ahrendts made her first public comments this month since taking over at the helm of Apple’s retail operations. She chose LinkedIn as the medium and in doing so, marked a clear change in personal style from that of previous management.

Technology earnings

When the higher valued technology stocks sold off in March and April, the key to their revival or otherwise was always likely to be earnings. As it was, many of the bellwether technology groups either hit or beat consensus expectations in the April earnings season.

Technology: a bubble?

The fears of a second bubble in technology had been mounting: there were once again hints of exuberance on the part of investors after the NASDAQ hit highs not seen since the giddy days of 2000...

Technology in the news

In last month’s newsletter, we mentioned the burgeoning trend of internet security. Major retailers have been stung by the coordination and sophistication of recent cyber-attacks and have been forced to address the holes in their security systems as a matter of priority.

Technology in the news

Microsoft has long understood the necessity of shifting its business from its weakening core markets to newer and higher growth areas. To date, its execution has been erratic; there have been ill-judged forays into the mobile phone world, for example.

© Allianz Global Investors GmbH 2022, Registered Office: Frankfurt am Main, Register: HRB 9340, Local court: Frankfurt am Main. All Rights Reserved. Allianz Technology Trust PLC is incorporated in England and Wales. (Company registration no. 3117355). Registered Office: 199 Bishopsgate, London, EC2M 3TY. VAT registration no. 678 1784 81. The Company is a member of the Association of Investment Companies - Category: Sector Specialists - Technology, Media & Telecoms.