Morgan Stanley identifies key tech considerations for 2018
Four major technological discussions ahead can change the future, according to Morgan Stanley.
“Big Debates 2018—North America,” a Morgan Stanley research project, has branded up to 25 key debates for this year, with four being quite significant according to some of the Fortune 500 companies top executives.
The first is debate is “Will Auto 2.0 Carve-Outs Lead to Substanstial Re-Ratings?”
“We’re entering Year Nine of the longest uninterrupted auto credit cycle on record, and auto makers and suppliers will find it hard to push earnings much higher, which will drive them to get creative on expanding the multiple,” Adam Jonas, head of Global Auto & Shared Mobility Research, said in a press release.
The second debate “Could Cryptocurrencies Pose a Threat to Incumben Digital Payment Solutions?” is also on the forefront, according to James Faucette, equity analyst for U.S. Communications Systems and Payments.
“The higher structural costs associated with decentralization of a scaled payments ecosystem are likely to offset any benefits of security and speed,” Faucette said in a press release. "Distributed ledger systems also have clear disadvantages at the point-of-sale such as the ability to contest a charge, fraud protection and near-universal acceptance.
The third debate holds the answer to “What Will 2018 Mean for the Future of Streaming TV Services?”
“We believe new competition in [Other Than TV] video consumption could actually further accelerate adoption, supported by more cable set-top integrations, continued growth in connected TVs, and additional migration of content over to OTT,” Benjamin Swinburne, head of Media Research, said.
Lastly, “Will Utility Growth in Wind Power Slow Due to Policy and Regulatory Uncertainties?” is a powerful discussion ahead, according to Stephen Byrd, head of North American Research for the Power & Utilities and Clean Energy industries.
“Wind blade lengths have increased much more rapidly than we, and the market, have expected. In the middle third of the U.S., wind farms have an all-in cost that is less than a third that of a new natural gas-fired plant, and wind power is also well below the cost of power from large-scale solar farms,” Byrd said in a press release.