"Some investors might be tempted to avoid the largest stocks on the market -- those worth more than $1 trillion, for instance -- due to their sheer size. Smaller companies surely have much more room to grow and can provide stronger returns over the long run, or can they? In my view, most trillion-dollar companies remain among the most attractive long-term investments on the market."
"And it's not just sheer size. Meta Platforms benefits from a strong economic moat that allows it to grow its user base continuously. Meta's apps display powerful network effects. Take Instagram, a platform people use to keep up with friends and family members, influencers use to build an audience, and businesses utilize to market products. The more people are on Instagram, the more attractive it is for all those purposes."
Meta Platforms reaches roughly 3.5 billion daily users across its apps, giving the company an unparalleled global audience. The apps generate strong network effects that make platforms like Instagram and Facebook increasingly valuable as more users, influencers, and businesses join. Users and businesses that build followings or marketing presences face high switching costs, reinforcing user retention. Financial results are excellent and the company retains significant growth opportunities despite potential obstacles. The combination of scale, network-driven engagement, and established monetization supports a durable competitive moat. The company represents an attractive buy-and-hold option for long-term investors.
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