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Economic Moat

Meta Platforms has a wide economic moat

People gain more value from Meta's apps when their friends, communities and favorite creators also use them, making those connections difficult for a smaller rival to match. This helps Meta retain audiences that businesses pay to reach.

What protects Meta Platforms from competitors

Network Effects

Facebook, Instagram and WhatsApp become more useful as more of a person's contacts and communities participate, so a rival cannot match their value simply by copying their features. Our assessment is that these connections help sustain audiences advertisers cannot readily reach through a smaller competing service.

What could weaken Meta Platforms's moat

1 risk to watch

What could happen to the source of the moat and how it would weaken it