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Network Effects Moat
25 companies · Ranked by earnings quality
Network effects exist when each additional user makes the product more valuable for every other user. Two-sided marketplaces (Uber, Booking.com), social networks (Meta), and communication platforms all benefit. These moats compound: the bigger the network, the harder it is for a new entrant to reach minimum viable scale.
| Company | Score | GM | ROE | CF/NI | FCF | Other Moats |
|---|---|---|---|---|---|---|
| CPRTCopart2025 | B88 | — | 16.9% | 1.16x | $1.2B | Efficient Scale |
| BKNGBooking Holdings Inc.2025 | B88 | — | -96.9% | 1.74x | $9.1B | — |
| VVISA INC.2025 | B86 | — | 52.9% | 1.15x | $21.6B | Toll Bridge |
| GOOGALPHABET INC.2025 | B86 | 59.7% | 31.8% | 1.25x | $73.3B | Toll Bridge |
| MSFTMicrosoft Corporation2025 | B84 | 68.8% | 29.6% | 1.34x | $71.6B | Switching Costs |
| MELIMercadoLibre, Inc.2025 | B83 | 44.5% | 29.6% | 6.07x | $10.8B | Efficient Scale |
| NFLXNETFLIX INC2025 | B83 | 48.5% | 41.3% | 0.92x | $9.5B | Brand Power |
| AXPAMERICAN EXPRESS CO2025 | B82 | — | 32.4% | 1.70x | $16.0B | Brand Power · Toll Bridge |
| METAMeta Platforms, Inc.2025 | B81 | 82.0% | 27.8% | 1.92x | $46.1B | Toll Bridge |
| MAMastercard Incorporated2025 | C79 | — | 193.5% | 1.18x | $17.2B | Toll Bridge |
| MARMarriott International2025 | C77 | — | -69.0% | 1.23x | $2.6B | Brand Power |
| UBERUBER TECHNOLOGIES, INC.2025 | C76 | — | 37.2% | 1.00x | $9.8B | — |
| AMZNAMAZON COM INC2025 | C73 | 50.3% | 18.9% | 1.80x | $7.7B | Efficient Scale · Toll Bridge |
| ARMARM Holdings2025 | C72 | 97.0% | 11.6% | 0.50x | $178M | Toll Bridge |
| HLTHilton Worldwide Holdings Inc.2025 | C72 | — | -27.0% | 1.46x | $2.0B | Brand Power |
| PYPLPayPal2025 | D69 | — | 25.8% | 1.23x | $5.6B | — |
| APPAppLovin2025 | D68 | 87.9% | 156.2% | 1.19x | $4.0B | — |
| SHOPShopify Inc.2025 | D67 | 48.1% | 9.1% | 1.65x | $2.0B | Switching Costs |
| DASHDoorDash2025 | D66 | — | 9.3% | 2.60x | $2.2B | — |
| EQIXEQUINIX, INC.2025 | D66 | 51.1% | 9.5% | 2.90x | $-400M | Switching Costs |
| PDDPDD Holdings2024 | D65 | 60.9% | 35.9% | 1.08x | $16.7B | Cost Advantage |
| TTDThe Trade Desk2025 | D65 | 78.6% | 17.8% | 2.24x | $796M | — |
| RBLXRoblox Corporation2025 | D60 | 78.1% | -270.0% | -1.69x | $1.4B | — |
| NETCloudflare, Inc.2025 | F59 | 74.5% | -7.0% | -5.90x | $287M | Cost Advantage |
| SBUXStarbucks Corporation2025 | F54 | — | -22.9% | 2.56x | $2.4B | Brand Power |
The "Other Moats" column shows additional moats each company carries beyond this one. Multiple moats compound multiplicatively, not additively.