The Internet of Things Vue is a share portfolio that comprises of ten global IoT stocks selected by Macrovue’s Investment team.

Every quarter our Investment team conducts a thorough review of this portfolio, taking into account recent earnings and related news flow, and provides our investors with an update on its performance and any changes made to the Vue.

Overview

Macrovue’s Internet of Things Vue has returned 23.75% over the past 12 months (to 01/05/18)
As a means of comparison, the ASX 200 was up 1.09% over the same period and the S&P 500 gained 11.59%

Top contributors to performance were:

  • PTC Inc +50.13%
  • STMicroelectronics +36.41%
  • Cisco Systems +33.71%

Three high-performing stocks in the portfolio

PTC Inc

In its most recent earnings announcement, PTC CEO Jim Heppelmann said “fast sales growth of the company’s Internet of Things and augmented reality products show that they are becoming a major strategic differentiator for industrial companies.”

The U.S. based ( Needham, Mass) industrial software company reported second-quarter earnings Wednesday, announcing that revenue for the quarter grew 9.8 percent year over year to US$308.2 million.

While IoT software, which includes PTC’s ThingWorx software, still constitutes a smaller fraction of total revenue, it is clearly PTC’s fastest-growing business, growing 33 percent year over year in the second quarter to US$29 million.

By comparison the company’s software solutions business (which includes PTC’s computer-aided design and product life-cycle management software), grew 10 percent year over year to $234 million.

During PTC’s the earnings call, Heppelmann said new deals represented roughly 50% of second-quarter bookings and the number of six-figure deals increased by 45 percent. The CEO also stated that Exxon Mobil, Airbus and an unnamed “leading global food and beverage” company are now significant customers.

STMicroelectronics

Industry analysts predict that STMicroelectronics should realize solid sales growth and margins in 2018, particularly in 2H. This is likely to be driven by substantial growth in autos, smartphones, Internet of Things and the new imaging platform.

STMicro is seeing auto-chip and industrial content grow significantly and should also expand imaging-chip sales. Margin targets may also be raised in 2018, and consensus’ 13% sales growth could be revised higher.

STMicroelectronics is therefore well-positioned to sustain longer-term sales growth amid rising chip content in autos and IoT, while advanced image-sensor chips on smartphones will support 2018 results.

Exposure to microcontrollers, sensors, analog and power chips drove double-digit sales growth and healthy margin expansion in 1Q. STMicro’s Automotive power and discrete group ( ADG) group now accounts for 37% of sales.

The Analog, MEMS and Sensors Group (AMS) segment, which includes low-power analog chips and smart-power products for industrial markets, and the imaging segment make up 29%. The Microcontrollers and Digital ICs (MDG) segment sales are 34%, and include memory and non-auto digital chips.

Cisco Systems

Acquisition of Accompany to provide AI-driven relationship intelligence platform

Cisco Systems recently announced its intention to acquire Accompany, a privately held company based in Los Altos, Calif. The company provides an AI-driven relationship intelligence platform for finding new prospects, navigating the selling process, and strengthening relationships.

Cisco believes the acquisition of Accompany will enable Cisco to take its collaboration initiative to the next level with even more intelligence. Accompany’s AI technology should help Cisco accelerate priority areas across its collaboration portfolio.

Complements previous MindMeld acquisition to strengthen AI offering

This acquisition complements the purchase of MindMeld in May 2017, another privately-held artificial intelligence (AI) company based in San Francisco, CA. MindMeld has a platform for deep domain intelligence to power the next generation of chatbots and voice assistants.

MindMeld gives Cisco a unique artificial intelligence platform for building conversational interfaces and enabling sophisticated voice recognition. MindMeld’s solutions go beyond just understanding commands, and enable people to communicate naturally with all their applications and devices.

Through its proprietary machine learning technology, MindMeld can deliver human-like accuracy to voice and chat assistants. According to Cisco, MindMeld possesses a deep expertise in Artificial Intelligence that will enable Cisco to deliver “ground breaking enterprise experiences” throughout its portfolio, starting with Cisco’s “Collaboration” product suite.

The company believes that its new focus on AI will further these experiences by making them more natural, intuitive, and intelligent.

To view the stocks in Macrovue’s Internet of Things portfolio and read expert analysis, create a free account.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

Past Performance is not a reliable indicator of previous performance. See how our performance is calculated.

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