IDC’s 3rd Platform Industry Spending Guides Provide In-Depth Forecasts for Technology Investments in Nine Industries

To bring more insight to technology spending across and within industries, International Data Corporation (IDC) recently published a series of Industry Spending Guides that provide in-depth forecasts for spending on 3rd Platform technologies (mobility, cloud, big data and analytics (BDA), social) and Innovation Accelerators (artificial intelligence (AI), augmented reality/virtual reality (AR/VR), 3D printing, Internet of Things (IoT), security, and robotics) as well as traditional, 2nd Platform technologies. The guides cover nine industries – banking, government, healthcare, insurance, manufacturing, oil and gas, retail, securities and investment services, and utilities – and provide detailed spending figures for nine geographic regions, 64 sub-industries and lines of business, and two delivery types (cloud and non-cloud).

“While IT spending is contracting in some areas, 3rd Platform spending will see healthy double-digit growth throughout the post-COVID recovery period and the investment priorities are somewhat varied across industries,” said Karen Massey, research manager, Customer Insights & Analysis. “The financial services industries, which include banking, securities and investment services, and insurance, rely more heavily on cloud, mobility and BDA, for example. But IoT is the primary investment focus in the other six industries, especially manufacturing, oil and gas, and utilities. However, mobility is a close second to IoT as an investment priority in government and healthcare.”

Within the banking industry, consumer banking is the largest line of business for technology spending with 2nd Platform technologies accounting for just over half the total in 2020. However, the shift from 2nd to 3rd Platform spending is evident with 3rd Platform and Innovation Accelerator spending enjoying compound annual growth rates (CAGR) of 10.4% and 17.7% respectively. Cloud and mobility spending will grow to nearly $53 billion combined in 2023 while cognitive AI spending will see a five-year CAGR of 21.6%. By the end of the forecast, 2nd Platform spending will be

Loop Industries plummets 39% after a short-seller report claims its plastic-recycling technology doesn’t work



a man looking at the camera: Getty Images / Xinhua News Agency


© Getty Images / Xinhua News Agency
Getty Images / Xinhua News Agency

  • The same short-seller that targeted Nikola in September has set his sights on a new name: Loop Industries.
  • In a report released on Tuesday, Hindenburg Research alleged that Loop Industries’ technology for recycling plastics didn’t work, describing it as “smoke and mirrors.”
  • Shares of Loop Industries fell as much as 39% on Tuesday.
  • Visit Business Insider’s homepage for more stories.

The same short-seller that targeted Nikola in September is now alleging that another company “is smoke and mirrors” and is inflating its technological capabilities.

Loading...

Load Error

In a report released on Tuesday, Hindenburg Research alleged that Loop Industries was peddling plastic-recycling technology that didn’t work.

Investors have taken note of what Hindenburg has to say since its September report on Nikola led to a drawdown of nearly 50% in that stock.

Loop Industries says it uses proprietary technology that can break down so-called PET plastics into base building blocks that can then be recycled.

Read more: Goldman Sachs says buy these 35 stocks for big gains right now as they offer double-digit sales growth and explosive margin expansion

Hindenburg said that “in other words, the company claims to have discovered how to turn worthless trash into pure gold, a feat that multi-billion chemical companies such as DuPont, Dow Chemical, and 3M have been unable to achieve on a large scale despite years of efforts.”

Hindenburg said that Loop Industries had never generated any revenue and that nothing had materialized from its announced partnerships.

The firm said that it didn’t expect Loop Industries to “generate any meaningful revenue” and that it saw 100% downside potential in the stock.

Read more: A fund manager beating 90% of his rivals told us why he actively avoids companies with giant profit

Loop Industries Drops – Hindenburg Makes Claims, Shorts Stock

Shares of Loop Industries  (LOOP) – Get Report lost a third of their market value on Tuesday after the activist investment group Hindenburg published a report lambasting the plastics-recycling company and said it took a short position.

The investment firm said it interviewed former employees, competitors, industry experts and company partners as part of its investigation and concluded that Loop is “smoke and mirrors with no viable technology.”

Loop, Terrebonne, Quebec, didn’t immediately return a request for comment. 

Former employees told Hindenburg that Loop operated two labs, one reserved for its “two twenty-something lead scientist brothers and their father” and one run by rank-and-file scientists who were unable to replicate results. 

The investment firm said that a Loop employee told Hindenburg that scientists were pressured by Chief Executive Daniel Solomita to “lie about the results of the company’s process internally. We have obtained internal documents and photographs to support their claims.”

The report also alleges that to help raise Loop’s startup capital, Solomita hired a convict who had pleaded guilty to stock manipulation.

Loop has claimed to have developed a patented proprietary technology that breaks down a common plastic, PET, using “products purchased from the local hardware store,” Hindenburg said.

“In other words, the company claims to have discovered how to turn worthless trash into pure gold, a feat that multi-billion chemical companies such as DuPont,  (DD) – Get Report Dow Chemical,  (DOW) – Get Report and 3M  (MMM) – Get Report have been unable to achieve on a large scale despite years of efforts,” Hindenburg said in its note. 

Loop Industries shares at last check fell 34% to $7.69. 

Loop Industries plummets 36% after a short-seller report claims its plastic-recycling technology doesn’t work

trader nyse worried chart
  • The same short-seller that successfully targeted Nikola Corp. in September has set his sights on a new name: Loop Industries.
  • In a report released on Tuesday, Hindenburg Research alleged that Loop Industries’ technology for recycling plastics doesn’t work. 
  • “Our research indicates that Loop is smoke and mirrors with no viable technology,” Hindenburg said. 
  • Shares of Loop Industries fell as much as 36% in Tuesday trades.
  • Visit Business Insider’s homepage for more stories.

The same short-seller that successfully targeted Nikola Corp. in September is now alleging that another company “is smoke and mirrors” and is inflating its technological capabilities.

In a report released on Tuesday, Hindenburg Research alleged that Canada-based Loop Industries is peddling a plastic-recycling technology that simply doesn’t work.

Investors are taking note of what Hindenburg has to say after its September short report on Nikola Corp. led to a drawdown of nearly 50% in that stock. 

Loop Industries claims to utilize a proprietary technology that can break down PET plastics into its base building blocks that can then be recycled into other plastic uses. 

“In other words, the company claims to have discovered how to turn worthless trash into pure gold, a feat that multi-billion chemical companies such as DuPont, Dow Chemical, and 3M have been unable to achieve on a large scale despite years of efforts,” Hindenburg said.

Read More: The global investment strategist at a $44 billion ETF shop explains why the pandemic-fueled boom of online retail is set to accelerate – and shares 5 stocks to watch other than Amazon ahead of its Prime Day

Hindenburg highlighted that Loop Industries has never generated any revenue, and its announced partnerships haven’t materialized into anything.

The firm doesn’t expect Loop Industries to generate any meaningful revenue and sees 100% downside

The Current Top Industries For Tech Startups

Let’s be honest, at the start of the COVID-19 pandemic there were some major doom and gloom outlooks for tech startups. At the start of April 2020, the New York Times was calling it ‘the great unwinding’. Yet, as things settle, we are realizing just how far off this prediction was. Several tech industries are now thriving, and here are our top five recommended industries for tech startups right now:



a person holding a sign


© Shutterstock


1. Artificial Intelligence

Loading...

Load Error

AI is the tech sector to be in right now. Not only is it an industry in its own right, but it is a technology that transcends all others too. Every other tech industry we mention going forward will likely rely in some way on AI.

According to the Fortune Business Insights, the global AI market was valued at US$27 billion in 2019. The COVID-19 pandemic has done little to alter the prediction that in seven years its market value will rise nearly 1,000 per cent to $266 billion.

Tech hubs are hugely important to the AI industry, because they pair those with knowledge of AI solutions with those with knowledge of an industry’s problems. Take Prognica Labs as an example. They combine tech expertise in AI with in-depth medical knowledge to help doctors better read medical images and improve breast cancer detection.

Excited by AI?

Then be sure to check out the many events on the subject that are held in the UAE every year. Eventbrite is a great place to search for these, but check out the Dtec Forum too. We’ve run highly successful events on AI in the past, including the Moving towards Artificial Intelligence forum, which led to the publication of the 2018 Corporate Artificial Intelligence Adoption, Strategies and Implementation report. 

2. Health tech/biotech

If COVID-19 has taught