"There are about 8.1 billion people in the world. Almost half of them, 3.5 billion to be exact, visit at least one of Meta Platforms' famous websites or apps daily. Few corporations have an ecosystem of users that even approaches this number. 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. The same can be said about Facebook. And once people (or businesses or influencers) have built a significant presence on these apps, leaving makes little sense, as it would often force them to start from scratch."
Meta Platforms reaches about 3.5 billion people daily, giving it one of the largest user ecosystems in the world. The company benefits from a strong economic moat driven by network effects across apps like Instagram and Facebook. High switching costs keep users, businesses, and influencers engaged once they build presence on the platforms. The deep ecosystem enables significant monetization, with most sales coming from advertising. The company faced obstacles including a slowdown in ad demand a few years ago, yet it still offers long-term growth prospects and substantial potential returns for patient investors.
Read at www.fool.com
Unable to calculate read time
Collection
[
|
...
]