When peeling back the layers of U.S. president Biden’s infrastructure plan, one of the key components is shoring up internet access to all Americans. This facet can help bolster cloud computing services and the Global X Cloud Computing ETF (CLOU) .
The obvious benefactor of Biden’s plan is infrastructure that will help modernize highways. However, one key component is providing internet access to those in hard-to-reach pockets of the country.
One of CLOU’s holdings, Amazon, stands to benefit from the Biden proposal. As such, it got the backing of founder Jeff Bezos in a statement that supported the president’s initiatives.
“Expanding broadband infrastructure is also a key focus of the plan, which says that by one definition there are 30 million Americans living in areas where broadband isn’t available to provide internet access at minimally acceptable speeds,” a Motley Fool article explained. “Those are all potential Amazon customers, not just for e-commerce, but also video streaming, its voice-activated technology Alexa, and even its cloud-computing business, Amazon Web Services.”
CLOU seeks to track the Indxx Global Cloud Computing Index. The fund holds a basket of companies that potentially stand to benefit from the continuing proliferation of cloud computing technology and services. CLOU gives ETF investors:
- High Growth Potential: CLOU enables investors to access high growth potential through companies that are positioned to benefit from the increased adoption of cloud computing technology.
- An Unconstrained Approach: CLOU’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF Efficiency: In a single trade, CLOU delivers access to dozens of companies with high exposure to the cloud computing theme.
Easier Access to Consumers
The plan’s push to expand internet access and modernize highways can help Amazon exponentially. Not only will it help give the online retailer access to more customers, but improved highways can also help with transportation.
“Arguably, no company will benefit more from such investment in transportation infrastructure than Amazon,” the Motley Fool article said. “Amazon is now the second-biggest U.S. company by revenue behind Walmart, bringing in $386 billion in revenue last year, $236 billion of which came from its North American e-commerce segment.”
“Expanding and improving highways, airports, and other transit systems will help Amazon achieve its goal of speedy delivery, and its promise of one-day delivery helps entice new sign-ups to Amazon Prime,” the article added. “Accelerating that further to same-day delivery would only increase the value proposition of Amazon Prime and the power of the loyalty program.”
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