Identifying the winners of the digital revolution

Andrew Macken

Montaka Global Investments

While investors have faced a once-in-a-century stumbling block at the hands of COVID-19, the pandemic may prove to be a stepping stone to significant investment opportunity. As the American proverb goes:

“The only difference between stumbling blocks and stepping stones is how you use them.” 

In this two-part white paper, we examine a multi-decade, structural trend that is now accelerating as a direct result of the pandemic.

Every business is now a technology business. This was a fringe view just five years ago and yet is exceedingly ubiquitous today. Leadership teams in businesses from all industries and around the world now understand the benefits of cloud-based technology infrastructure and software-based applications that can be purchased in a scalable way as services. They understand the imperatives to leverage their data in sales, marketing and customer service functions. They understand their systems need to work seamlessly across multiple devices and for employees who could be located anywhere in the world. Customers are increasingly demanding more too: retailers need to sell effectively across multiple digital channels. This list is nearly endless.

And this was before the world was struck with the COVID-19 pandemic. In a matter of weeks, entire workforces needed to work from home. Demand for digital collaboration tools skyrocketed. Zoom peaked at over 300 million daily meeting participants, compared to just 10 million in the months prior. The US News and World Report noted that Zoom is being used in 96% of top US Universities as entire college campuses made the shift to online classrooms. Microsoft Teams grew to 75 million daily active users, up from 20 million at year-end 2019. Likewise, Tencent’s enterprise communications app WeChat Work served 250 million monthly active users in May, up from just 60 million pre-pandemic. 

It is beyond dispute that the digital transformation of the enterprise is a structural trend that has recently accelerated. And we remain in the early innings of this trend. 

Read the full paper here: Part 1: Winning in the age of enterprise- digital transformation

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We will be releasing part 2 of this white paper in the coming weeks. Click the 'FOLLOW' button below to get it delivered directly to your inbox.

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Andrew Macken
Chief Investment Officer
Montaka Global Investments

Andrew is responsible for managing all investments at Montaka, including the ASX-quoted Montaka Global Long Only Equities Fund (ticker: MOGL) and Montaka Global Extension Fund (ticker: MKAX).

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