Mixing Tech and Health Stocks Equal A Purple DNA?

 

“Imagination is everything. It is the preview of life’s coming attractions”- Albert Einstein 

In my humble opinion, writing an investment article these days is quite a challenge. This is because you are stuck with only two hot topics. One is Covid developments and its associated economic impact while the other is the tech stock euphoria. During a lucrative discussion, Applied Materials (AMAT) and Gilead Sciences (GILD) stocks were raised to my attention. Further researching these two stocks reminded me of an interesting investment fact. Wise investing is not about monitoring your favorite stocks movements minute by minute or even second by second. Rather, it is about believing in the company’s intrinsic value and potential growth. More importantly, how the company adjusts its strategies during crisis times. Considering 2020 as a roller coaster year to many companies, AMAT and GILD did well despite of everything. The credit goes to their markets shifting strategy and diversified products. Beside smart strategies, what connect the dots between these two? One answer could be in knowing that AMAT products include a face mask inspection which is more or less related to health care industry. This raised an imaginary curious question. What if we merged the healthcare defensive beta with the tech high beta, will this create a perfectly neutralized stock? What will happen if AMAT & GILD activities and line of business were merged together? Will this lead to a purple DNA for both humans and stock markets?

Since it is an imaginary scenario, no one actually knows. Nevertheless, this reminded me of the famous science fiction movie “Fast & Furious: Hobbs and Shaw” that narrates how a programmable super virus could end the world. So imagine that GILD could utilize tech products and artificial intelligence in its medical research and pills production. If that is the case, you could think of many possibilities. GILD could produce programmable pills and symptoms detection software as a counter strategy to any programmable viruses. Such pills could decode the virus programmable signals and detect it any place in the world. Also, it could utilize AMAT hardware and software technology to create disease symptoms inspection machines. Now, GILD could adjust its programmable Remdesivir doze to match the patient scanned symptoms and its severity. Hence, GILD could ensure that patients are taking Remdesivir in accurate dozes. The most important thing, GILD will control Remdesivir distribution globally through software inspection synchronized with the patient’s smart devices including phones and TV’s. This will ensure preventing Remdesivir distribution to mild symptom patients during panicking times such Covid. Phones tech apps or smart TV medical microchips could be another possibility for GILD to detect for HIV patients. Creating a breakthrough technology in blood testing through microchips embedded in smart devices could shorten the disease detection in a matter of seconds. Consequently, such devices will send a signal to the marketing team of a potential location to distribute its products. If such technology was available today, GILD would have increased its sales of HIV products instead of recording a decrease of 1% during second quarter of 2020.

Finally, it is only science fiction but any technological breakthrough in healthcare will lead to another. This is evidenced today by the health care and pharmaceuticals apps that are on the rise. I think that the next purple giant in the stock markets will be the one that innovates the link between tech and health care. Will that ever happen? Time will tell…