This New Trend Could Mean Money For Google and Yahoo!
The company, LUMO BodyTech, developed an electronic device to help users fix their back posture and avoid back problems later in life. Anyone with semi-frequent back pain could see the value in such a product, and Schmidt and Yang seemed willing to put money on it. The device allows users to view data on their back posture by linking wirelessly to smartphones, which could give Google the added opportunity to support the device, perhaps exclusively, on its Android operating system.
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CHEAT SHEET Analysis: What does this mean for Yahoo, Google, and the tech market?
One of the core components of our CHEAT SHEET Investing Framework explains that companies riding macro trends tend to outperform those that don’t. Think of the investing proverb, “A rising tide raises all boats.”
As pocket-sized technology spreads like wildfire, a new trend has emerged in the form of small tech devices or programs designed to help users monitor or improve their health. For instance, many smartphones now feature pedometers, and Nike (NYSE:NKE) has developed the FuelBand, as well as an iPhone application: Nike+ Running. As consumers become more and more health conscious, the market for products like LUMO BodyTech’s will grow as well.
Google and Yahoo getting on board with the health-tech market not only means added big-name support for the market, but also that Yang and Schmidt could see strong returns on their investments and decide to use Google and Yahoo’s power and influence to expand and further capitalize on the young market and growing trend.
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