Top 5G Stocks to Invest In 2020 – Top 5G Stocks from Emerging Markets + More


hi I’m Jimmy in this video we’re gonna
walk through the top 5G stocks not just in the US but around the globe our goal
is to see if we can identify the best 5G companies either that are directly
related to 5G or indirectly related that we can by going into 2020 and
beyond now just so we’re on the same page 5G is the fifth generation of
wireless networks and it’s expected to be a real game-changer it’s supposed to
provide speeds over 4G LTE that can range anywhere from 10 times the current
speed to a hundred times the current speed they say that when we’re connected
to a true 5g network we could download a full high-definition movie in somewhere
between 1 and 3 seconds but 5g does have its limitations the biggest one comes in
the difficulty of setting the whole thing up so when we think about the 4G
network well what while his companies had to do companies like Verizon or AT&T
what did they have to go when they were setting the whole thing up well
essentially they would set up cell towers and those cell towers sent out
signals and when we look at the radio wave as an example the 4G would land
somewhere in that area and usually that’s some are less than 6 gigahertz the
advantage to that is that when the towers go up they send out a fairly
strong signal and up to this point 4G has served us fairly well but as more
and more devices come online 5g is supposed to be able to handle way more
devices way faster but crucially the 5g signal operates further down the
spectrum and the advantage to that is that there’s way more bandwidth over
there and it should be significantly faster but it can’t travel nearly as far
as the lower frequencies can and it could be blocked easier by large objects
like aw building so what providers are forced to do is they’re forced to put up
way more smaller cells as compared to a broader tower like a 4G network now
obviously this map isn’t a scale I’m simply illustrating how it would work
the point is that where you would just need one cell to cover a certain area
you’re going to need significantly or 5g sells not only to get around the
obstructions that are could be in the way but also because the signal doesn’t
travel as far so what the very extensive 5g Network calls for is a ton of upfront
cost and that’s currently what companies like AT&T and Verizon are currently
laying out as they’re setting up now at the end of the day there’ll be huge
long-term beneficiaries of the 5g network but I do think it’s important to
point out that a fully scaled 5g network is still many years away now once it’s
here wireless companies will be able to take the 5g network that they build and
offer a variety of products by slicing the network using software updates so
it’s likely to produce a greater return on invested capital compared to
something like the 4G network one of the key advantages to 5g is that it’s going
to be much more software based than the hardware based after the initial setup
the the 4G network is much more restrictive in what you can do with it
whereas 5g is going to be much more expensive I believe it was a CEO of
Sprint that described this nicely when he said that 4G was where you could add
individual lanes to a highway that hand could handle a certain number of lanes
5g is very similar except it can handle more lanes and in this case you can
stack multiple highways on top of each other without any issue
so clearly companies like AT&T and Verizon could be solid long-term
beneficiaries full from the 5g network but we should also consider some of the
smaller plays I think of a company like t-mobile and I think it’s possible that
t-mobile as it tries to pick up ground in the 5g network where they can gain
ground that perhaps AT&T and Verizon don’t initially focus they could
essentially snatch some of their overall market share and that could help some of
the smaller guys grow so that’s another good one and I’ve actually got three
favorites coming up in the end but these are all ones I think we should consider
well we can also look at the supplier space a company like Corning is a good
example Corning has already signed a supply agreement with
and to supply optical fiber which is necessary to build this type of
infrastructure now I’m actually a big fan of Corning in general I believe that
they have a solid business outside of 5g and what they’re doing in 5g should help
continue to support their growth overall but I think at the end of the day
Corning could be a good sort of a side hustle in this whole thing another
company that’s sort of in line with this and somewhat of an underdog because a
lot of people are relying on it and that’s Nokia now Nokia is traded in
Europe and in the US and many of us could get involved in Nokia if we want I
believe it’s a cheaper stock a lower-cost stock not cheaper but a lower
cost and right now they’re heavily reliant on the success of 5g and they’re
playing a giant role in it so I think that that’s another complimentary one to
a company like Corning ok but now I’ve got three favorites and I think could do
quite well as 5g continues to come to market to come from the emerging markets
and one focuses on the developed markets but we can buy them all in the US and
they’re also traded in other countries around the world
now I found these companies what I was looking for us I was looking for
companies that had a potentially strong hold on their piece of the 5g market in
their respective areas the first one is global telecom global
telecom is a provider of telecom services in the Philippines now what I
like about them is they have pretty good growth from a revenue perspective and as
we could see they’re expected to continue growth over the next couple
years at least according to analyst estimations now on top of that global
telecom has a decent balance sheet they have a relatively strong profit margins
compared to most types of companies in this industry and most importantly they
have limited competition in the 5g space in their home market that’s probably why
they have pretty good margins ok next up we have China Mobile now China Mobile
has seen a decent amount of growth over the past couple years and once again
they’re going to be huge beneficiaries of the emergence of 5g now China Mobile
has been spending a ton of money on 5g cells and they’ve recently upped the
amount of cells 5g cells that they accept
to put up this year they opted the target amount China Mobile has the
largest mobile consumer base in the world
and they’ve been shifting their business from primarily voice to more data
centric now if they’re able to scale the 5g network in China which they seem well
positioned to do well they’re likely to have some solid growth for at least the
next few years now you may know that I couldn’t really find any reliable animal
analyst projections but overall it still seems that their growth has been decent
so far another good sign is that the China mobile ad our that trades in the
u.s. currently pays the dividend yield of about four and a half percent and
just so we’re on the same page in ADR is short for American depository receipt
and basically it’s when a US bank a u.s. depository bank which they represent a
certain number of shares and essentially they list their own listing for the
representation of those shares on a US exchange so when you buy an ADR you’re
essentially buying the bank’s ownership in the ownership of the company so atrs
can be an easy way to buy shares of a company or get access to the shares of a
company that note that don’t normally trade in our own country so we can go
buy China Mobile on the US market using the ADR or in Hong Kong which is their
home market they also trade on a European exchange I believe they trade
in Germany either way there’s opportunities to jump in above okay on
to the next company and that’s KDDI KDDI is the second largest telecom company in
Japan behind NTT now they have a fairly strong balance sheet and when we check
out their earnings per share well we can see that they’ve had some decent growth
but what I like most about KDDI is that they seem to be bringing their business
right in line with what 5g brings to the table they’ve recently started offering
Netflix to their customers just as an example I think this is a good sign for
them and probably Netflix as well but we’ll get into that in another video
then what they’ve done to help achieve their goal is to try to blend both 4G
and 5g as they try to expand their 5g network now I actually think that Japan
is well suited geographically for 5g expansion since it’s a smaller country than
a country like the US or China plus they’re already moving in the
direction of getting many of their 53 million or so subscribers plus I believe
they have another 39 million homes and business subscribers — that could
all use an upgrade towards the 5g Network so in the long run I wouldn’t be
surprised if KDDI did quite well as 5g continues to develop but what do you
think I know I listed a lot of companies in this video and I have a few favorites
and a lot of that is revolved around I think that they’re gonna offer some more
growth opportunities than perhaps a bit more debt-ridden AT&t and Verizon in the
US as 5g continues to grow I would expect many if not all of these
companies to do quite well or at least who benefit from the 5g expansion but
what do you think please let me know what you think in the comments below if
you haven’t done so yet hit the subscribe button hit the thumbs up thank
you so much for sticking with me all the way to the end of the video I’ll see in
the next video thanks

Paul Whisler

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