Digital Revolution Trade


With the internet emerging as the distribution channel of the future, there’s a billion dollar battle being waged among media, cable and internet companies.

On the front lines of the digital revolution is Netgear (NTGR).Theirgoal - to make everyone’s home a wireless network. The company is taking Steve Jobs and the new Apple (AAPL) TV head on.

Taking a break from Silicon Valley, Netgear Chief Executive Patrick Lo, joins the guys on set at the Nasdaq.

Netgear’s plan is to use its wireless networks in homes and drive content from the internet to your TV.

Lo says from a technology standpoint, the company is already capable of doing this. But the content on the web needs to be better. As soon as a big pipeline of content is made available online, he thinks Netgear will be well positioned to tap into it.

Eric Bolling is about as bullish as you can get in this space. Everything is going online and content is king, he says. And with more and more people working from home and starting their own businesses, Netgear is poised to see real upside from that as well.

Lately, the stock’s performance can be attributed purely to the upgrade cycle, Tim Strazzini says. He’s curious when the next protocol upgrade cycle could come into the company’s bottom line.

Lo says his business will take off as demand for high-speed internet increases. He believes as more content is available online (and more of that content is high-definition) the demand will materialize.

Netgear is also moving into Saudi Arabia, a country with a huge upgrade cycle, Guy Adami says.

Many countries in the Middle East, Latin America and Asia have extremely high populations and low penetrations when it comes to the web, Lo says. He expects some of those huge markets to explode with demand in the near future.

Lo didn’t say it but Dylan will: When Steve Jobs worries at night, it’s probably about folks like Patrick Lo.


Questions? Comments?

Trader disclosure:
On May 3, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Macke owns (SWY), Strazzini owns (JBLU),(VZ); Bolling owns (DIS), (TSO) Puts,
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