The Internet of Things (IoT) refers to connected technologies and devices that can communicate with the cloud. Examples include smart home devices that communicate with your home thermostat to adjust the temperature, or devices that automatically preheat your stove before you get home from work.
IoT is expected to help improve energy efficiency, optimize supply chains, and better manage inventory levels. The advent of Artificial Intelligence (AI) is expected to accelerate and further the adoption of IoT. Will machines and technology eventually take decisions on their own, without human intervention? Only time will tell.
So, let’s take a closer look at three IoT stocks that could boost your wealth.
Blackberry (BB)
Image credit: Poetra.RH / Shutterstock.com
Considered a meme stock by many, the stock is not without risks. However, BlackBerry (NYSE:BB) remains a leading IoT company. Originally a smartphone maker, BlackBerry has expanded into cybersecurity and IoT over the past 15 years. Until recently, management had plans to spin off its cybersecurity and IoT divisions into separate publicly traded companies.
Those plans were shelved as the company continues to struggle financially. By the end of June, BlackBerry reported a quarterly loss that increased nearly 300% from a year ago as sales slumped. The latest results showed a loss of 7 cents per share, down from a loss of 2 cents a year earlier. First-quarter revenue was $144 million, down 61% from $373 million a year ago.
Despite the poor performance, BlackBerry CEO John Giammatteo said during an earnings call with analysts and media that the company is on a “path to profitability.” The company cut 200 jobs and closed six of its 36 offices worldwide earlier this year. Giammatteo, who took over as BlackBerry CEO in December, said the cuts are expected to save $125 million in total costs. BlackBerry shares have fallen 50% in the past 12 months.
Oracle (ORCL)
Source: Jonathan Weiss / Shutterstock.com
Technology giant Oracle (NYSE:ORCL) operates an “Internet of Things cloud service” that helps companies correlate, aggregate, filter, and make sense of incoming data. It’s one of many services offered by the diversified technology giant that’s primarily focused on software development. IoT is a small but growing part of Oracle’s business today, but it’s still contributing to the company’s revenue and stock price.
ORCL shares are up 33% so far this year. The company’s cloud business has recently gained momentum with deals with Google parent Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and privately held OpenAI. Specifically, Oracle is bringing its databases to Google’s cloud platform. Going forward, organizations will be able to deploy workloads in Google and Oracle cloud data centers without paying data transfer fees. Additionally, Oracle is relocating its headquarters to Nashville, Tennessee.
ORCL shares have risen 140% over the past five years.
Super Microcomputer (SMCI)
Source: rafapress / Shutterstock.com
Super Micro Computer (NASDAQ:SMCI) makes the servers that power IoT technology, and business is booming. Demand from both AI and IoT applications and models has seen SMCI’s stock soar over the past year. Year-to-date (YTD), Super Micro Computer’s stock is up 180%, making it the best-performing stock in the benchmark S&P 500 index.
On July 22, Supermicrocomputer shares will be added to the Nasdaq 100 Index, marking another milestone for the fast-growing technology company. The achievement comes as the company’s market capitalization has ballooned to nearly $50 billion. Inclusion in the Nasdaq 100 should boost SMCI stock prices, as mutual funds and exchange-traded funds (ETFs) tracking the index will be required to purchase SMCI shares.
As of the publication date of this article, Joel Baglole held a long position in GOOGL. Opinions expressed in this article are those of the author and follow InvestorPlace.com’s Publishing Guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Joel Bagrol has been a business journalist for 20 years, including five years as a reporter for The Wall Street Journal and writing for The Washington Post, the Toronto Star and financial websites such as The Motley Fool and Investopedia.
