Buy These 2 Big Data Stocks Warren Buffett Wouldn’t Have Touched a Year Ago

Among the many most promising technologies is something called deep learning. A simple definition of deep learning is the use of artificial intelligence (AI) to carry out a form of advanced pattern recognition or advanced analytics. Deep learning has become the hottest subsector within AI thanks to technological breakthroughs in both image and language recognition that is approaching human levels of comprehension.

The potential scale of deep learning’s impact on business was laid out last month in a report from McKinsey Global Institute called Notes from the AI Frontier: Insight from Hundreds of Use Cases. The study from McKinsey found that, for some industries, deep learning has the potential to create value equivalent to as much as 9% of a company’s revenues.

One of the most promising areas for the use of deep learning, according to McKinsey, is marketing and sales for consumer-facing industries. Examples would include customer service management, creating individualized offers, acquiring customers and honing prices and promotions. Frequent interactions with customers generate the huge amount of data needed to feed the AI systems. The winners will be the companies that can sweat the largest amount of data the hardest.

Airlines Go ‘Deep’

One consumer-facing industry that is turning to big data and deep learning to improve its profitability is the airline industry. Profit margins are already narrow because of the intense competition between the airlines and now rising fuel prices are adding even more pressure.

So the industry is seeking to personalize experiences for as many travelers as possible by using the vast amount of data the airlines have on their passengers. And think about it – the airlines do have a lot of data about you – name, address, phone numbers, birth date, credit cards, favorite seating assignment, how often you visited their website, etc. In fact, some researchers say that an average transatlantic flight generates about 1,000 gigabytes of data!

Two of the airlines moving down the technology path are American Airlines Group (Nasdaq: AAL) and United Continental Holdings (NYSE: UAL).

Earlier this year, American Airlines came out with an app that allows its flight attendants to offer passengers “a gesture of goodwill”, such as air miles, when there are any sort of minor problems (such as the flight entertainment system not working). That instant customer service is a lot better than having flight attendants telling passengers (that probably have a million other things to do) to contact a customer relations representative when the flight lands. As the airline said when it rolled out the app, “Our goal is to improve the customer experience, particularly when things don’t go as planned, to make it a little bit less painful for them.”

Poor United Airlines has had a number of customer relations nightmares, such as a passenger being dragged off a plane or a dog dying. So it definitely needs to step up its customer relations game. Its flight attendants have handheld devices that give them access to customer details, such as when they last flew with the airline, whether they have a tight connection and if they have dietary requirements. And like American, United offers customers a bag-tracking service to alert them if their luggage is lost or delayed.

And United employees’ “in the moment” app will allow United personnel to compensate passengers immediately for things like flight delays or spilled drinks. Hopefully, United employees will make use of this data and technology to make passengers’ flights as easy and comfortable as possible and repair the company’s image.

Even overseas-based airlines are going ‘all in’ on big data and deep learning. Ryanair Holdings PLC (OTC: RYAAY) wants to become the “Amazon for travel” by using its customers’ data to cross-sell items, such as hotel rooms, from a one-stop-shop platform.

I expect more airlines to follow the route Ryanair is taking. Think about it – shopping an online store, while still in flight, filled with everything from ground transport options to tours to other destination-related activities. Passengers returning home could even do their grocery shopping while in-flight to have the groceries delivered when they arrive home. The possibilities are almost endless.

A study conducted by the London School of Economics and Inmarsat said that in-flight broadband – offering streaming and online shopping to passengers could create a $130 billion global market within the next 20 years.

Related: Buy These 3 Stocks Warren Buffett Used to Hate

The study estimated that the airlines’ share of that total could amount to $30 billion in 2035. That’s quite a jump from the forecast $900 million in 2018 and is just what this profit-squeezed industry needs.

Warren Buffett said famously in 2002, “If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money.” And indeed the industry has been a chronic money-loser.

But even Buffett bought stakes in the four major U.S. airlines in 2017 – American and United as well as Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV). With airlines adopting technology and using deep learning, their profitability longer-term should become more stable. That makes them an interesting investment, good enough even for Buffett.

Buffett just went all-in on THIS new asset. Will you?
Buffett could see this new asset run 2,524% in 2018. And he's not the only one... Mark Cuban says "it's the most exciting thing I've ever seen." Mark Zuckerberg threw down $19 billion to get a piece... Bill Gates wagered $26 billion trying to control it...
What is it?
It's not gold, crypto or any mainstream investment. But these mega-billionaires have bet the farm it's about to be the most valuable asset on Earth. Wall Street and the financial media have no clue what's about to happen...And if you act fast, you could earn as much as 2,524% before the year is up.
Click here to find out what it is.

The 3 Best Marijuana Stocks to Buy Today

Legal marijuana revenue is expected to soar 145% by 2021, jumping from $10 billion last year to $24.5 billion. Investors who act quickly can still get in early on this industry’s stunning growth potential with our top three marijuana stocks to buy today.

The $10 billion that the legal cannabis industry generated in 2017 is just the tip of the iceberg.

One prediction puts legal sales at $75 billion by 2030.

Marijuana stocks to buy today

When it comes to this industry, it’s essential investors do their homework to find only the best marijuana stocks. Many pot stocks can be risky investments and undergo volatile price swings. Plus, some upstart companies deal directly with the production and distribution of marijuana, which subjects them to regulation risks.

But the top pot stocks we’re bringing you today avoid many of these risks.

Each pot stock we’ll show you trades on a major exchange, has a diversified revenue stream that protects it from the ups and downs of a new industry, and is going to be an essential player in the marijuana industry as it grows.

That’s why we’re giving you our picks for several top “backdoor” pot stocks to watch

Best Marijuana Stocks to Buy Today, No. 3: Scott Miracle-Gro Co.

Scotts Miracle-Gro Co. (NYSE: SMG) has been on our list of top cannabis stocks to watch since 2016.

While you’re first thought about Scotts Miracle-Gro might not be marijuana, this is one of several cannabis “pick-and-shovel” plays that Money Morning recommends. Like the enterprising businesses who sold shovels to miners during the gold rush, this company profits from the marijuana industry without being directly involved.

Pot Stock Profits: A historic event is unfolding in California’s marijuana markets, and the wealth expected to flow into this industry is record-breaking. Learn how to cash in here…

This 150-year-old company is known for brands such as Evergreen, Roundup, Ortho, and Miracle-Gro. It has more than 8,000 employees and billions in annual revenue. This alone makes it attractive, but CEO Jim Hagedorn wants more.

In 2015, Hagedorn decided to expand the company’s reach into the booming legal-marijuana cultivation market. That year, SMG purchased two companies that specialize in fertilizer and soil for growing marijuana. The following year, it picked up a 75% stake in the hydroponics equipment company Gavita International.

Hydroponics allows a cultivator to grow plants without soil by using a water solvent that is treated with nutrient-rich solutions. This has become a popular method for growing marijuana, particularly where populations are dense.

Bloomberg reports that the hydroponics industry had generated approximately $250 million in annual revenue in 2016, and significant growth is expected in the future.

The company has continued to acquire other brands related to cannabis cultivation and hydroponics. These include Botanicare, Vermicrop, Agrolux, Can-Filters, and General Hydroponics. In April 2018, SMG announced plans to acquire hydroponics supplier Sunlight Supply for $450 million.

SMG stock currently trades for $81.26 and pays a generous 2.54% dividend yield. But the stock price is going to grow even more.

Company CFO Randy Coleman indicates that company sales could increase about 15% in 2018. The high, 12-month price target for SMG stock is $113, which represents 38.72% gains for today’s investor.

But the next company is adapting technology to the booming pot industry…

Best Marijuana Stocks to Buy Today, No. 2: Microsoft Corp.

Microsoft Corp. (Nasdaq: MSFT) is an unlikely pot stock to buy, but one of the best plays you can make.

MSFT is a blue-chip tech giant currently running the world’s second-largest cloud computing network with its Azure service. That cloud network is going to be essential to the legal cannabis industry.

Microsoft became an early tech player in the legal marijuana market through its cloud business with a lucrative partnership called Kind. Started in 2016, this is a software service that tracks cannabis from seed to sale.

Because the legal marijuana industry in most countries and U.S. states is so highly regulated, there must be tight controls in place that allow cultivators, dispensers, and regulators to track every cannabis plant, to ensure that players are 100% compliant with the laws. These controls also keep legal marijuana off of the black market.

As more states and countries pass laws to legitimize this industry, the need for these controls will continue to grow.

When you buy MSFT stock, you get the benefit of indirectly investing in legal marijuana, as well as the rest of Microsoft’s lucrative business.

Shares of MSFT are currently trading at $96.04, and the high price target for the stock is $130, which would deliver 35.36% gains over the next year.

And our top pot stock to buy right now is one you might not have heard of, but it could be the most profitable to own of all…

Best Marijuana Stocks to Buy Today, No. 1: Cronos Group Inc.

Cronos Group Inc. (Nasdaq: CRON) is one of the best pot stocks to watch right now.

And while it’s still a pick and shovel play, it’s more directly involved in the cannabis industry than Microsoft or Scotts Miracle-Gro.

Cronos is a Canadian investment company that invests in firms that are either growing or dispensing legal cannabis in Canada.

The company was the first cannabis company to achieve a Nasdaq listing, because it is not breaking any U.S. laws. It simply invests in marijuana companies without actually producing any marijuana itself.

Cronos owns Peace Naturals, which is a company authorized to sell cannabis oil and marijuana in Canada. It also owns Original BC, which is likewise licensed to distribute legal cannabis in Canada.

Marijuana is scheduled to become legal nationwide in Canada by September 2018, which means that now is the best time to invest in Canadian pot stocks.

The company also hopes to distribute worldwide and currently has an exclusive agreement with over 12,000 pharmacies in Germany. It is also participating in a joint venture to supply medical cannabis to Southeast Asia, Australia, and New Zealand.

Cronos had its IPO on Feb. 27, and shares are currently trading at $5.90.

And Canada’s upcoming marijuana legalization this summer could be one of the best profit opportunities you’ll ever see…

Get up to 14 dividend paychecks per month from safe, reliable stocks with The Monthly Dividend Paycheck Calendar, an easy-to-use system that shows you which dividend stocks to pick, when to buy them, when you get paid your dividends, and how much.  All you have to do is buy the stocks you like and tell them where to send your dividend payments. For more information Click Here.

Source: Money Morning