@shyam.vyas: When I’m evaluating or doing any research on a stock, I always make sure to ask myself this one question: does the product or service becomes more valuable as it grows? In this video, I explain what a network effect is and why it’s so important when investing into a stock. #stockmarkettips #investing #financeeducation #investingforbeginners #investingtips
Regarding Uber I agree but I think the moat is weaker than I thought. Of course new platforms have to build the network which is expensive and takes time but in my experience there are huge incentives for people to download competing apps just to check if there’s a better option. It takes a bad ride (too expensive, to slow, dirty, far away from your staring point) for people to wonder if there’s a better option. I’ve seen people actively search for another option (also frecuently someone will say “I just had a terrible experience with an uber” and people around will recommend apps they started using as a consequence of a similar bad experience), you download the app and register in a minute. From there on you can actively see which is the best option for any given ride and uber can only compete in price (lowering revenue and margins). Also I’ve spoke to anyone of drivers and they themselves are using 3 or more apps interchangeably
2026-05-12 02:52:31
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BaasiTamatar :
Why wouldn’t this effect show up on paper? A bigger network means more growth and earnings.
2026-05-12 07:06:26
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2026-05-16 03:27:23
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