If you’re reading this, I assume you’re either the marketing person for LifeLock or have at least heard of them. If not, here’s a short introduction. LifeLock helps businesses and individuals protect their phones, tablets, and laptops by locking them down with a code and biometric security measures.
Since the beginning of this year, LifeLock stock has gone up over 100%. Their revenue is growing by leaps and bounds as more people and businesses discover the power of digital security.
To learn more about LifeLock and their growing popularity, let’s take a quick look at how their technology works.
LifeLock uses a combination of physical, digital, and behavioral biometric measurements to create a secure profile for users. To authenticate themselves, they will display a one-time use number on the login page of their website. When users log in with that number, they are presented with a visual identity card that serves as a digital key to access their accounts.
The power of biometric authentication is that it can be almost impossible for an unauthorized person to impersonate you. If you’ve ever used a fingerprint sensor on a phone or tablet, you know how it works — in theory. The more complex the system, the more secure it will be. LifeLock is one of the pioneers in using multiple biometrics, including voice, face, and fingerprint scanning.
The pros of LifeLock are pretty straightforward. First, they have a proven history of security in the mobile device space. Their first product, ProtectMyID, was launched in 2007 and became a market leader in mobile security. While they have since branched out to other product lines, their core mobile security expertise gives them a distinct advantage.
Second, their customer base is expanding as more people care about their data and how to protect it. Insecure computers and smartphones lead to security breaches where sensitive information is at risk. LifeLock’s target audience has shifted to business and government users but even individuals are now careening toward digital overshares.
Finally, LifeLock has established a strong brand in the anti-fraud and identity theft space. Their customers know exactly what they’re buying and why they need it. The brand also gets a lot of positive press coverage, further establishing their position in the market.
On the other hand, LifeLock has a few minor cons. First, their pricing is on the high side. Their products range from $5 to $50 per month with a one-time setup fee. Second, they can seem a bit slow to adopt when it comes to new technologies. While they are a leader in biometric security and have a lot of experience implementing new protocols, they can still benefit from the efficiencies of external development teams.
Third, their customer base is predominantly business users and, therefore, their support is geared toward businesses as well. They do a good job of describing themselves as a one-stop-shop for all your security needs. For end users who want to buy their own equipment and manage their own accounts, they can be a little difficult to work with. Their support staff is also quite busy helping businesses get set up with protective measures so they can focus on running their business. For this reason, it’s probably best to find a partner or an agency that can help you get going or get help if you run into any snags.
Overall, the growth of LifeLock is a great example of the power of the digital market. Specifically, since the beginning of this year, several popular stocks have soared along with LifeLock. Let’s take a look at some of the more prominent gains. ————————————————
GoPro is one of the more recognizable camera and video game companies in the world. It’s best known for its action sports cameras, but it also makes gaming peripherals and action cameras. In February 2020, GoPro was valued at roughly $15 billion. Since the beginning of this year, it’s price-to-earnings ratio (P/E) is over 60%. That’s higher than the S&P 500’s and the Nasdaq’s average P/E.
In mid-April, the company reported strong quarterly earnings. Revenue increased by 30% year over year to reach $738 million, and they also beat estimates on both the top and bottom lines. During the last earnings season, shares of GoPro closed at $17.50, up from $14.82 at the beginning of the year. The trend is clearly up for this one.
Why should you buy GoPro? The stock has gained nearly 60% since the beginning of this year and is one of the few investments you can make that provides revenue and profit without worry of a sluggish economy or worse.
Another big winner since the beginning of the year is JPM. Like GoPro, JPMorgan Chase is an investing powerhouse valued at over $20 billion. It’s primary business is investment banking, but the company also has substantial retail banking, asset management, and insurance operations. ————————————————
The last couple of years have not been kind to Fitbit. The stock price has declined about 75% since its 2019 peak, and the company’s market capitalization currently sits at about $3.75 billion. Despite this, Fitbit continues to hold a lot of promise. The device manufacturer designs, builds, and operates its own hardware and software while also inking partnerships and deals with prominent companies.
Recently, Fitbit signed a deal with L’Oreal to develop fitness trackers for the women’s and men’s cosmetics companies. The French cosmetic giant also owns about 13% of Fitbit’s stock. If you look at the company as a whole, you can clearly see the shift in the gaming industry toward fitness tracking and wellness products. If you want to play it safe, you can buy Fitbit while it still has some value.
BlackBerry is another name that has soared since the beginning of the year. The mobile device company is one of the few that still exists from the era of the original mobile phones. It was originally valued at $20 billion and then plunged about 75%, nearing a $5 billion market value. Since then, it’s climbed back up to about $10 billion. Its recent success can be attributed to several reasons. First, the company has pivoted toward developing security software and services rather than simple mobile phones. Second, the entire market has shifted to mobile devices and there aren’t many other options available for consumers — especially business users.
The rise of mobile device usage has created a huge opportunity for businesses and, therefore, BlackBerry as well. Just consider Amazon’s (AMZN) effect, the ripple effect that Amazon’s purchases have on the economy. In 2022, over half of the American workforce will be connected to the internet in some way through their mobile device. Amazon alone purchases about $3 billion worth of goods and services every month. If you own even a small piece of AMZN stock, you’ll be doing well no matter what the market is doing.
Last but not least, let’s not forget about TikTok. The video platform is largely considered to be a playground for millennials. While it gained popularity quickly, its valuation now stands at about $15 billion. What’s perhaps most interesting about this particular stock is its meteoric rise. In early April, the stock traded for as low as $7.70 and then zoomed up to $14.84 in early June. Since then, it’s remained fairly stable at around $14 per share. This has made it one of the best performing stocks of the year so far.
Although the video platform is highly dependent on user engagement and viral content, it has also developed a rather robust community of content creators and community managers who engage with users through compelling stories and entertaining content.
If you’re looking for a quick and easy way to make money, you could do a lot worse than investing in any of these stocks. Not only will you make money, but you could also potentially make a good amount of money. Keep in mind that the market could take a sizable hit if any of these companies flounder in the coming months. However, for now, at least, it’s apparent that investors are still quite enthusiastic about the potential for mobile devices and digital security in general.