A picture paints a thousand words. And a video captures a thousand pictures.
That’s why the world is shifting to what I like to call the “Video Economy.”
In short, everything these days is built on top of video. And when I say everything, I mean everything.
Communication? Forget calling. And texting. These days, we send pictures and videos to one another via Snapchat, Instagram, and TikTok.
Entertainment? Forget books. And radio. These days, we watch movies and TV shows on YouTube, Netflix, and Disney+.
Education? Forget textbooks. And pencils, pens, and paper. These days, we log onto Chegg and Khan Academy, and watch video tutorials and taped lessons.
Work? Forget emails. And long memos. These days, we meet using Zoom and create presentations using Prezi.
Sales? Forget cold-calling. And spammy emails. These days, we sell stuff by creating compelling videos, and pushing those videos all over the internet.
Everything is based on video these days – as it should be.
Simply consider these stats:
- Visuals are shown to increase desire to read content by 80%.
- 85% of folks are more likely to buy a product after watching a video about it.
- Media posts with images produce 180% more engagement.
- 9 out of 10 people prefer visual content over written content.
- Articles containing relevant images have 94% more total views than articles without images.
The data here is overwhelming, and the conclusion indisputable.
Goodbye, texts. Hello, videos.
The future is video – and that future is arriving now.
Today, we will give you one way to play this golden era of video. It’s a freshly public company that is building the tools companies – and individuals – need to succeed in the Video Economy. This is basically a “picks-and-shovels” play on the Video Economy, and it’s arguably the single best picks-and-shovels Video Economy investment opportunity in the market today.
Providing the Tools Necessary to Build the Video Economy
You can’t establish a Video Economy unless you first enable everyone to create, edit, store, and share videos.
That’s why we believe that the biggest winners in the Video Economy won’t be the companies making the actual videos – but rather, the companies that provide the tools which allow everyone else to make videos.
Those are the “picks-and-shovels” suppliers of the Video Economy, if you will, and those are the companies that will strike it rich in the video “gold rush”… because, when all is said and done, every company and individual in the world will be using their tools, but not every company and individual in the world will be watching the same video.
That’s why we are so bullish on a freshly public company by the name of Vimeo (NASDAQ:VMEO).
Many of you have probably heard of or even used Vimeo in some capacity before. Vimeo operates an all-in-one video software solution, that helps companies and individuals alike create, collaborate, and communicate with video.
Specifically, Vimeo helps companies:
- Record, produce, edit, and stream live and on-demand videos.
- Privately share, edit, and collaborate on video production.
- Publicly share videos on websites, blogs, marketplace, and social media platforms.
- Store, organize, and manage videos in a central video library.
- Measure video performance across platforms, and help craft optimized video marketing campaigns.
- And more.
In short, Vimeo is an end-to-end video software solution. They make video easy. And, as such, any company – and any person – who wants to create, edit, and/or share a video of any sort has a use-case for Vimeo’s services.
This ubiquitous appeal is partly why we like Vimeo so much. As we sprint headfirst into the Video Economy, every single person and company in the world is going to have a need, want, or desire to create and share video – meaning Vimeo’s addressable market is, quite literally, the whole world.
The other thing we really like about Vimeo is its first-mover advantage.
Vimeo’s been doing this for a while. The platform already has over 200 million registered users in over 190 countries, 1.5 million paying subscribers, and nearly 300,000 new videos being uploaded every single day.
The company is already widely seen as “the brand” for video creation tools – just like Tesla is “the brand” for EVs, and Facebook is “the brand” for social media, and Netflix is “the brand” for streaming TV.
Being “the brand” in an emerging space helps, because new adopters immediately flock to “the brand” out of the fact that they are aware of and subconsciously trust that brand.
New EV adopters mostly bought Tesla cars. New social media adopters almost always signed up for Facebook first. New streaming TV adopters almost always started with Netflix.
By the same token, new video content adopters will most likely start by using Vimeo.
Thus, so long as Vimeo can keep these new adopters in its platform with world-class tools – which the company is doing successfully so far, with a net revenue retention rate of above 110% in the fourth quarter of 2020 – the company has a ton of visibility to dominating the video content creation market for the foreseeable future.
And that’s why – if you’re bullish on the Video Economy, as you should be – then you should consider adding Vimeo stock to your buy radar today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.
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