A new technology could change the game for Amazon, Facebook, Netflix and every smartphone user (GOOGL, NFLX, AMZN, AMAT)

pulse

July 25, 2017 4:51 AM

OLED technology could change how we use smartphones, and YouTube, Amazon, Netflix and Google could all benefit, according to David Fiszel's Honeycomb.

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A tech hedge fund that has been crushing it sees a huge opportunity for YouTube, Amazon, Netflix and Google.

It's called OLED – "organic light-emitting diodes" – and it could soon change how people use their smartphones.

David Fiszel's Honeycomb Asset Management, a New York-based investment firm, flagged the technology and its potential for tech giants in its second-quarter letter sent last week to investors. The fund, which launched last summer, has posted 12.2% gains after fees this year.

Here's an excerpt from Honeycomb's letter, a copy of which was reviewed by Business Insider:

"[OLED's] Some of these screens can unfold and double the size of your display allowing you to browse the internet and watch videos more comfortably while keeping your current phone size unchanged

OLED's also tout longer battery life, and smartphone and appliance manufacturers are already looking to incorporate OLED into their products, Honeycomb notes.

Who is likely to be affected? According to Honeycomb:

YouTube and Netflix.
Google and Facebook

"Goldman Sachs recently estimated that the OLED industry will triple to $46bn from its current size by 2020," Honeycomb added. "The applications for OLED are seemingly endless."

The hedge fund firm sees an opportunity with Applied Materials (ticker: AMAT), which it currently invests in.

According to Honeycomb, AMAT is "a supplier of semiconductor capital equipment and is a leading provider in the OLED space, a fact that is underappreciated by the market because OLED-related sales represent a minority of AMAT’s revenues today."

Before launching Honeycomb last summer, Fiszel worked at Steve Cohen's firm, then SAC Capital Advisors, starting in 2000. He later left to run a hedge fund startup, Rhombus Capital, which closed in 2007, and later moved back to Cohen's firm, according toprevious news reports.

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