What does Bill Gross have in common with mobile testing?
Would you be surprised to know it’s everything?
Mr. Gross, who at one point managed over a quarter trillion dollars in assets, recently lamented the lack of opportunity in capital markets. Interest rates are trapped at all-time lows, and they are not going anywhere. The dividend yield on the S&P 500 Index is at 2%, even the Price to Earnings ratio, at 21, is 50% higher than the historical mean.
Mr. Gross, and other leading investors see an overpriced market where opportunities for above average growth are becoming difficult to find. As tech indexes continue to break new highs, the future could see more downside than upside. I’m not talking about the hi-tech industry mind you – just the stock market which has a tendency to get a little ahead of itself. The greatest innovations have occurred over the last 15 years as the Nasdaq stock index did nothing but return to the high it reached in 2000!
If we are seeing a repeat of the past, where massive innovation leads the stock market for the next 15 years, then stocks will do what they did at the peak in 2000. They will overreact to bad news. A company that misses earnings, or even meets earnings but lowers guidance on future earnings can see a crash in its price of 25% or more.
This could be the new normal for technology valuations.
How do you protect your company from something like this?
Stocks don’t implode on the unexpected. It’s the things that everyone takes for granted that cause the real problems. Things that have been working right for ages which suddenly stop can cause the real horror: especially for a company who has been growing rapidly.
A successful mobility strategy is at the heart of the growth which is propelling stocks to high valuations. Improved mobile applications improve worker productivity, enhance the customer experience, and make things more convenient for everybody.
But what happens when the assumed goes haywire? What happens when a mobile application, the cornerstone of a company’s growth strategy, crashes?
The Fear Factor Kicks In
One user tells another that the app doesn’t work. The user tells his friends on social media. The brand name of the company is damaged due to the failure. Not only is the high growth operations of the business impacted, the day to day operations take a hit.
Then the Wall Street analysts chime in. Then the brokers form an opinion. The irrational exuberance investors had in the potential for your stock, becomes an even more irrational fear of what else is going wrong with your company. The sell orders pile on.
It can all collapse faster than you can say pets.com.
Protect Your Capital to Protect Your Capital Gains
This is why you have to have a comprehensive, consisting mobile testing strategy. The assets that generate the most value to your enterprise must be guarded with the same level of diligence as you guard the value itself.
Mobile application testing protects the future of your business. It is a level of insurance designed to guard against unexpected downside better than any stock option or futures contract.
A top of the line mobile testing tool like Experitest’s SeeTest solutions suite is the best way to insure that protection. SeeTest enables you to test your mobile application for functionality, performance, and speed. Like any successful investment, SeeTest looks forward, already empowering you to test for wearables, smartwatches, and the Internet of Things.
We are working hard to make sure all of your unexpected surprises will be positive ones!