“Software is eating the world.” – Marc Andreessen
Over time, some consumer goods have become significantly cheaper as manufacturing capacity and supply exploded relative to demand. Televisions, which once sported high price takes in the 1950s, have not only come down in price but have also become much larger, sleeker, and higher resolution.
On the other hand, goods and services including college tuition and medical care have seen significant price increases over the past several decades.
Throughout the pandemic, schools across the country have transitioned to online learning modes. This has students using technology products like Zoom, Canvas, and Google Workspace. Today, massive open online courses (MOOCs) offer classes from some of the top universities for a fraction of the price if not free. With an online class, physical limitations are removed.
Companies like GoodRx are making efforts to address prescription drug prices while Omnicell leads the way in medication management. In healthcare, innovation can help address some of the issues and improve outcomes.
It’s interesting to think of the impact the internet can have on these categories experiencing skyrocketing prices – and which companies may be best positioned to capture this value.
The author or his firm have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.