April 2024 / EQUITY
Outside of AI, what other areas of technology interest you today?
Two opportunities in technology outside of AI that Dom Rizzo is particularly excited about: global e-commerce and payments
Video Transcript
I'm particularly excited about two opportunities.
One is global e-commerce. And it's a pretty simple reason: online retail continues to take share from offline retail. What happened during COVID is we built a ton of e-commerce supply all over the world as we all worked from home and had to buy many of our goods just delivered to our house. Now as many of us return to the office, we saw a short term resurgence in physical retail. Going forward though, I think we're going to see accelerating revenue across the e-commerce space as people have those sticky COVID habits of making sure that they buy stuff online which is more convenient and often cheaper than in stores. That trend is happening all over the world and there are great local companies in many different geographies, which we're excited about today.
The second one is payments. Digital fintech is something that people have talked about for a long time in technology, but what's so exciting about many of these companies is they're bringing a software mindset to a financial services world. And with that, you have a much lower cost to serve and much higher profitability unlocking huge swaths of the global payments industry that was never possible before because costs were too high. But now with a software like framework, we're able to address these different types of use cases that we were never able to. So I continue to think digital payments will take share from cash and we are able to find those linchpin technologies all over the world, whether it's in Latin America, US or Asia that benefit from that trend.
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Dominic Rizzo is the portfolio manager of the Global Technology Equity Strategy. He is a vice president of T. Rowe Price Group, Inc., and T. Rowe Price International Ltd.
