It's Friday, so it is time for the Avory Chart of the Week!
There is no question that Apple, Facebook, Microsoft, Google, and Amazon all dominate.Combined these 5 companies generated $647 billion in revenue over the last 12 months. However, contrary to popular belief, they dominate in very different ways. Conceptually, all 5 work in different areas of the consumption value chain. Google helps you find what you are looking for, Microsoft manufactures top products for the enterprise, Apple crafts high-end products for the consumer, Amazon makes the sale of goods and services as frictionless as possible, and Facebook connects peers to other peers and companies.
While we highlighted the differences, we also understand there is a key similarity which has led to their sustainable growth. At the onset, each company was razor focused on solving one core problem. As they grew, each began to create ecosystems around the brand. Amazon created Amazon Prime Membership, Apple keeps their operating system closed but connected to other Apple devices, Microsoft has a unified office suite, Facebook naturally has network effects, and Google benefits as more queries come in. As new companies emerge, they will likely try and use the playbook established by these 5 companies. .
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
Disclaimer: This is not a recommendation for purchase or sale of any securities.
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