The recent blowout financial results from the FANG companies (Facebook, Amazon, Netflix, Google) reminded me of Marc Andreessen’s bold prediction about software companies. Seems more and more relevant with every passing quarter:
1) Every product or service that can become software will become software.
2) Therefore, every company that makes those products or services has to, and will, become a software company.
3) Therefore, in any industry in the long run the winning company will be the best software company.
You can substitute “data analytics” for “software” and pretty much get a similar conclusion, even if the physical product itself is not software.
Marc Cuban, for what it’s worth, thinks artificial intelligence “will change everything” and the FANG stocks are ready to “crush it” on AI. Buckle up.