Megatrends 360 - Understanding the Purposeful Firm
Measurement and analytics of ESG criteria are still in an early stage and require a custom approach.
Megatrends 360° - Develop Frameworks to Identify Future Tech-driven Winners
Investment implications
- Integrating technology successfully has become a key indicator of commercial success.
- Firms that successfully integrate technology potentially create lasting competitive advantage and earnings growth. Investors' frameworks should include firms that:
- Capture network effects in their product offerings (e.g., Tencent, Amazon).
- Actively supplement in-house tech development with technology-driven M&A (e.g., GM acquiring AV startup Voyage).
- Consciously structure their business models around the adoption of technology, even at the cost of cannibalizing current business (e.g., Netflix)
PGIM Megatrends Series
Long-term views on the investment implications of global megatrends.
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Explore Other Megatrends 360° Themes
Megatrends 360 - Identifying Superstar Firms
As markets are becoming more concentrated and driven by network effects, investors need to have a framework to identify rising superstar firms.
Megatrends 360 - The Power of Weightless Firms
Firms driven by intangible assets stay private longer and create opportunities across investor portfolios.
References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. The securities referenced may or may not be held in the portfolio at the time of publication and, if such securities are held, no representation is being made that such securities will continue to be held.