You likely don’t think of coffee as a sexy investment – and certainly not a high-tech one.
I want to challenge that view today by telling you about a coffee company that’s leveraging a mobile app to crush its competitors – and even other retailers.
In fact, more than 9 million people use this app each and every week to purchase this company’s food and beverages with their smartphones. That comes to 20% of sales for a firm that last year had revenue of $16.4 billion.
That means this humble “coffee company” now ranks as a world leader in one of tech’s fastest-growing sectors – mobile commerce.
What’s more, over the past year, this tech-savvy firm has beaten the S&P 500 by a stunning 7,900%.
Today I’ll show you five reasons why this tech stock in disguise will continue to crush the market.
And then I’ll lay out how you can play it to pick up a triple-digit gain…
Brewing High-Tech Profits
The executives at Starbucks Corp. (Nasdaq: SBUX) have used high tech as a sales tool for years.
That’s because the company consciously views the technology it employs as a strong competitive advantage that boosts sales and improves margins.
For example, back in 2001, at a time when many consumers were still using dial-up to surf the web, the Seattle-based global chain introduced Wi-Fi throughout its stores.
It’s as if the firm’s leaders looked ahead to a time when mobile-enabled professionals would choose Starbucks as a prime place to meet with clients… return calls… or just catch up on emails and paperwork over an iced coffee or flavored latte.
This “build it and they will come” attitude has paid off big time for Starbucks, with more than 60 million people visiting one or more locations every week. That’s 3 trillion visits per year.
But the firm’s growing embrace of mobile technology dwarfs anything from that “early adopter” past.
In fact, this “coffee company” is among the biggest players in one of the fastest-growing tech markets around – mobile commerce.
Digi-Capital forecasts that total mobile services will grow nearly threefold between 2014 and 2018, from $300 billion to $850 billion. And mobile commerce will account for 70% of that revenue, or about $595 billion.
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