No Apple Inc. (AAPL) or Google Inc (GOOGL) in Goldman Sachs Group Inc (GS)’s Tech List


Goldman Sachs Group Inc (NYSE:GS) has released a list of tech stock that it believes are best positioned for Internet of things. However most of us would think that companies like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) would definitely be in that list. However if we think so, we are wrong. The list doesn’t have both the companies’ names and it might be surprising but it’s true.

Goldman Sachs Group Inc (NYSE:GS), internet of things, Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOGL), QUALCOMM, Inc. (NASDAQ:QCOM), Garmin Ltd. (NASDAQ:GRMN)

We can think of Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) being best positioned for the Internet of things, however the list provided by Goldman Sachs Group Inc (NYSE:GS) has companies mostly from chip design industry. Companies like QUALCOMM, Inc. (NASDAQ:QCOM) and Garmin Ltd. (NASDAQ:GRMN) feature in the list. The list had a lot of chip manufacturing companies and hardware manufacturing companies for the internet of things industry.

Goldman Sachs Group Inc (NYSE:GS) is upbeat on Apple Inc. (NASDAQ:AAPL) and just that the released list doesn’t have it. CNBC’s Jon Fortt thinks that an investor has to be careful with these lists and he said that if there would have been a list of companies that would benefit from the wireless revolution, Nokia would have been on it; however Apple Inc. (NASDAQ:AAPL) wouldn’t have featured in that list either.

Fortt said that names like QUALCOMM, Inc. (NASDAQ:QCOM) are well positioned currently however as we go down the component names in the list we don’t know what is going to happen. He also said that as of today we don’t know which of the products is going to be a standout product in the internet of things. It might be a Smartwatch or a thermostat. So once that gets sorted, there would be a clear picture.

Goldman Sachs Group Inc (NYSE:GS) also lists some companies that were expected not to perform well such as Garmin Ltd. (NASDAQ:GRMN). It’s notable that the company was expected to go wayside when its GPS technology became less relevant. It’s notable that Garmin Ltd. (NASDAQ:GRMN)’s share price rose over 2% on Friday. QUALCOMM, Inc. (NASDAQ:QCOM) has had impact of this too and its share price also went up.

The list tells that Goldman Sachs Group Inc (NYSE:GS) believes that chip manufacturing companies and WiFi product companies will have control in the internet of things market.

“I’ll bet you that the companies that benefit the most from the internet of things, are not are not on this list. It won’t even be the components”

Fortt meant the components such as Chips and processors would just have a volume business but not huge profits as the prices are supposed to go down due to the competition and lesser margins. So it would be in between companies like Apple Inc. (NASDAQ:AAPL) or Google Inc (NASDAQ:GOOGL).

Disclosure: None