NEW YORK (TheStreet) - For tech sector investors, Kleiner, Perkins, Caufield & Byers (KPCB) annual 'Internet Trends' report is required reading and gives insight into the most clear trends running through the technology sector from one of the largest venture capital firms in the world.
KPCB's report, at 164 pages in length, is packed with data-filled slides, and is exhaustive and runs through a gamut of trends in the mobile, video, analytics, social networking, application, advertising and hardware markets. As with each years' report, KPCB's 2014 study shows some clear trends that should be studied by investors in some of the most commonly held tech stocks such as Facebook (FB), Apple (AAPL), Google (GOOG), IBM (IBM), Twitter (TWTR) and Microsoft (MSFT).
Other trends identified by KPCB may be highly relevant to recent or soon-to-be IPO'ed Chinese e-commerce and advertising behemoths like JD.com (JD), Baidu (BIDU), Weibo (WB) and Alibaba, while also proving relevant to U.S. based commerce firms such as Amazon (AMZN) and eBay (EBAY).
Below are a handful of slides to look over from KPCB 's Internet Trends 2014 report:
Facebook's Immediate Future
KPCB highlights the rise of social sharing on networks such as Facebook, Twitter, YouTube, and Instagram, however, investors may be struck by how that social activity may be translated into profits for some of Silicon Valley's biggest companies. It was not long ago, people wondered aloud whether Facebook or Twitter would eventually charge users to participate in their networks.
With the public disclosure of both Twitter and Facebook's earnings, it is now evident the social networks stand to benefit most from growing usage on their networks and building tools to create targeted and data-filled advertising and marketing platforms with that data.
Facebook appears to be at the forefront, as TheStreet has reported. By using back-end user activity to help advertisers target campaigns on 'the social network,' Facebook appears poised to disrupt the advertising industry, creating durable earnings that may help Mark Zuckerberg continue to also identify long-term investments for the future.
The below slides give insight into Facebook's opportunity in the analytics, advertising and marketing markets. Competitors such as Twitter, Google and LinkedIn (LNKD) also stand to benefit.