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May 10, 2021 | GSAM Connect

Tech Bytes: Edition 2

Q&A With the Fundamental Equity Technology Team

Tech innovation continues to accelerate, creating significant secular growth opportunities for long-term investors.  In Tech Bytes: Edition 2, the Fundamental Equity Technology Team shares their views and insights in response to top-of-mind questions from clients, covering artificial intelligence, e-commerce, software-as-a-service (SaaS), short video and live streaming platforms, and on-demand pay. The team comprises 16 investors with an average of 18 years of experience, and manages over $14bn in dedicated technology portfolios (as of April 30th, 2021).

  • In Tech Bytes: Edition 2, we discuss artificial intelligence (AI) as a key driver of technological change, our approach to investing in the AI space, and the critical role semiconductor companies play in enabling AI capabilities.
  • We also discuss e-commerce, a tremendous area of growth over the past ten years. We explore how the Association of Southeast Asian Nations (ASEAN) markets could be the next frontier for e-commerce growth and how e-commerce companies are now expanding to offer adjacent services like digital payments and grocery delivery.
  • Given the number of software-as-a-service (SaaS) initial public offerings (IPOs) throughout 2020 and into 2021, and the interest they have received from investors, we look at the differences between first-generation (first-gen) and next-generation (next-gen) software companies, and the factors contributing to changing competitive dynamics in this space.
  • In recent years, short-video and live streaming platforms have disrupted the online advertising and e-commerce markets around the world, revolutionizing how users engage with content from both a social media and advertising perspective. We discuss how this started in China but is now a key disruptive trend across the globe.
  • Finally, as consumers have moved to ‘on-demand’ services in most aspects of life, we look at the implications of on-demand pay, which allows workers to access their wages on a daily basis. On-demand pay has generated interest from both employers and employees alike, and we believe it has the potential to transform the business payments ecosystem.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

 

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About the Authors

Sung Cho

Sung Cho

Portfolio Manager, Goldman Sachs Asset Management
Brook Dane

Brook Dane

Portfolio Manager, Goldman Sachs Asset Management
Nathan Lin

Nathan Lin

Portfolio Manager, Goldman Sachs Asset Management

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