Technological advances have led to a new business model that helps companies thrive even in the face of competition and the erasing barriers to entry. The model is called platform capitalism , and it is made possible by the internet, cloud technologies and databases. And, more importantly, control over this data, allowing you to extract profitable information from it.
Where do ordinary people invest?
The idea behind platform capitalism is to retain the customer and use their data to sell additional products and services (to the customer) and their data (to third parties). The user of the platform is “tied” to it and cannot “jump off” from this platform without significant costs.
Apple is a good example of platform capitalism. The iPhone is not just a phone, but a platform that provides users with photo storage services, access to an app store, and so on. Other examples of platforms are Netflix, Facebook, Amazon, and Google through the Android system.
Why the popular approach isn't the smartest
All of the above names are good investment candidates, but they have problems:
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Atlassian (NASDAQ: TEAM)
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PTC Inc. (NASDAQ: PTC)
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Sometimes , the best for long-term capital growth are companies that are not heard and in the focus of the market hype, but methodically and consistently build their business, tying corporate clients to themselves for many years. B2B platforms are just such a case.
Cloud businesses built on a multi-tenant paradigm are money printing machines.