The Last Digital Leap Is Now in Motion

By Jeff Brown

Saturday, April 10, 2021

Editor’s note: In today’s Weekend Edition, we’re turning things back over to our friend Jeff Brown from Brownstone Research.

Earlier this week, Jeff shared the concept of the “digital leap.” Today, he explains how the COVID-19 pandemic has accelerated this process… and how investors can take advantage.

The COVID-19 pandemic has radically changed the way we live our lives. Many of us began working from home. Kids started remote school. Conferences and social gatherings were canceled, and travel slowed to a crawl. And some of us had food or groceries delivered to our homes. We even learned how to socialize and entertain ourselves from home.

The pandemic and lockdowns were a catalyst that forced us to adapt many of our behaviors. And we’re still seeing the effects a whole year later.

But there’s another important way the pandemic altered the world around us… It sped up the pace of something I call a “digital leap.”

A digital leap is when an entire industry transitions from analog to digital. And whenever a digital leap takes place, it can be one of the most profitable events in the stock market.

We’ve seen this happen numerous times.

We saw it when Amazon (AMZN) made going to a brick-and-mortar store unnecessary… letting us order products online and receive them on our doorstep in mere days. Companies that failed to adapt quickly to the new digital retail space – think of Sears and J.C. Penney – got crushed. But Amazon’s stock has risen to more than $3,000 per share.

Or consider Blockbuster. It completely missed the digital leap from VHS and DVD to streaming video… even passing up the chance to buy Netflix (NFLX). But Netflix’s own stock price has risen more than 43,000% since it went public in 2002.

Investors who positioned themselves ahead of these digital leaps had a rare and extraordinary opportunity to become wealthy. And that’s why the pandemic’s effect on digital leaps is so critical to follow.

After all, during the pandemic, many businesses had no other choice but to go digital. And that has provided some huge tailwinds for these digital leaps…

COVID-19 Sped Up Digital Leaps

The pandemic has had an outsized effect on industries making digital leaps.

For example, many people have been avoiding unnecessary contact with others over the past year… and instead have chosen to buy things online and have them delivered. During the first quarter of 2020, e-commerce spiked 49% year over year.

It’s easy to understand why. The lockdowns made it much simpler for people to order the things they needed instead of venturing out. Who wanted to risk exposure to the virus?

And that’s how Amazon was able to grow its 2020 revenue 38% from the previous year – an increase of more than $100 billion.

Another example is Square (SQ). Despite already growing at a fast pace, Square’s Cash App saw a boom during the pandemic as well. Its Cash App revenue doubled during the pandemic to $325 million in the second quarter compared to the year before.

And it makes sense. After all, people didn’t want to handle cash, which could potentially spread germs. And Cash App made it easy for them to accept their stimulus checks and unemployment benefits. The pandemic fast-tracked this digital leap.

Our work experienced a digital leap too. Businesses had no choice but to adapt.

Technologies like Zoom (ZM), Alphabet’s (GOOGL) Google Hangouts, Microsoft’s (MSFT) Teams, and Cisco’s (CSCO) Webex transformed our communications with our coworkers and clients. Zoom’s stock alone rose more than 500% from the start of the pandemic until its peak.

Digital contracts also benefited from the pandemic. This is the tech that is helping companies complete contracts and paperwork securely and without ever meeting in person. One recommendation I made in this space skyrocketed more than 400%.

And more critically, after the pandemic is over, this trend isn’t going away… The convenience is too high. Now that people have gotten used to having their groceries dropped off at their doors… and companies have gotten used to the way digital contracts streamline their business… virtually no one will go back to the old way of doing things.

That’s why these digital leaps are so important. They change how we live our lives. And, of course, as investors, these large profits are why we need to keep our eyes on spaces where we are seeing a digital leap take place…

The Last Digital Leap

There’s one more reason why I’m so excited about the pandemic throwing digital leaps into overdrive.

And that’s because I see a rare opportunity for investors to get in early on a digital leap that’s just entering the earliest stages…

You see, one $11.9 trillion industry has lagged all the others. For decades, government red tape has kept it from experiencing this digital transformation.

But the pandemic has changed the game…

Now this industry has to go digital. And it is the last major one beginning its digital leap. In fact, I believe it could be the biggest yet.

That’s why I’ve prepared a brand-new presentation to share all the details on this wealth-building opportunity.

In it, I talk all about the industry undergoing the last digital leap… and the company that is the best way to profit. This company is planning a big announcement in the coming months that could potentially mint new millionaires.

You don’t want to miss out on this rare chance to take advantage of a digital leap right as it’s poised to take off… Learn more here.


Jeff Brown
April 10, 2021

Whitney Tilson
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About Whitney Tilson

Prior to creating Empire Financial Research, Whitney Tilson founded and ran Kase Capital Management, which managed three value-oriented hedge funds and two mutual funds. Starting out of his bedroom with only $1 million, Tilson grew assets under management to nearly $200 million.

Tilson graduated magna cum laude from Harvard College with a bachelor’s degree in government in 1989. After college, he helped Wendy Kopp launch Teach for America and then spent two years as a consultant at the Boston Consulting Group. He earned his MBA from Harvard Business School in 1994, where he graduated in the top 5% of his class and was named a Baker Scholar.

Click here for the full bio.