01-16-2021, 06:39 PM
List of all companies that you believe benefits the most from the "network effect"?
<!-- SC_OFF --><div class="md"><p>"The network effect is a phenomenon whereby increased numbers of people or participants improve the <a href="https://www.investopedia.com/terms/v/value-network.asp">value of a good or service</a>." - <a href="https://www.investopedia.com/terms/n/network-effect.asp">https://www.investopedia.com/terms/n/network-effect.asp</a></p> <p>What companies do you think benefits from the network effect the most? Preferably the non-trillion dollar FAANG companies. Anyways here are some examples for me, most of them being obvious:</p> <p>​</p> <p>Tesla - The more people who buy and drive a Tesla, the stronger their self-driving software gets, which increases the value of each Tesla.</p> <p>Lemonade - The more data and user behavior that gets collected through their app, the more accurate their underwriting gets which makes the overall product cheaper for everyone. </p> <p>Square - The more people who join their payment system, the more valuable the entire ecosystem becomes. </p> <p>Bitcoin - The more people who join, the more secure (and valuable) the entire network becomes.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Okmanl"> /u/Okmanl </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/kyai9b/list_of_all_companies_that_you_believe_benefits/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/kyai9b/list_of_all_companies_that_you_believe_benefits/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>"The network effect is a phenomenon whereby increased numbers of people or participants improve the <a href="https://www.investopedia.com/terms/v/value-network.asp">value of a good or service</a>." - <a href="https://www.investopedia.com/terms/n/network-effect.asp">https://www.investopedia.com/terms/n/network-effect.asp</a></p> <p>What companies do you think benefits from the network effect the most? Preferably the non-trillion dollar FAANG companies. Anyways here are some examples for me, most of them being obvious:</p> <p>​</p> <p>Tesla - The more people who buy and drive a Tesla, the stronger their self-driving software gets, which increases the value of each Tesla.</p> <p>Lemonade - The more data and user behavior that gets collected through their app, the more accurate their underwriting gets which makes the overall product cheaper for everyone. </p> <p>Square - The more people who join their payment system, the more valuable the entire ecosystem becomes. </p> <p>Bitcoin - The more people who join, the more secure (and valuable) the entire network becomes.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Okmanl"> /u/Okmanl </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/kyai9b/list_of_all_companies_that_you_believe_benefits/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/kyai9b/list_of_all_companies_that_you_believe_benefits/">[comments]</a></span>Kind Regards R