About Applico’s Platform Insights
Platform Insights compiles the data of all publicly listed mid- and large-cap platform businesses* that are listed on a US or European exchange. We license this data to financial companies who want to create investment products or acquire insights about leading platform companies.
Platform Insights is the world’s first data set that identifies how much platform revenue a public company generates, as described in Modern Monopolies, the best-selling book about platforms written by Applico’s CEO Alex Moazed and Principal Nick Johnson.
WisdomTree, a leading ETF creator, recently licensed Platform Insights. Click below to learn more about PLAT, the world’s first platform-specific ETF.
*Primer: What Is a Platform Business?
“Tech” is not a sector.
What is a tech company? Investors talk about tech companies as their own sector, despite the fact that tech is present in every industry.
In the retail industry, tech makes online, open marketplaces like Amazon possible. In the media industry, tech connects aspiring video producers to an audience of billions on Youtube. In real estate, property owners can now easily list their properties on Zillow, and in the transportation industry, casual car owners can now supplement their incomes by giving passengers a Lyft.
Becoming a “tech company” has become so appealing that long-storied companies like Goldman Sachs, Fidelity, McDonald’s and Walmart now call themselves tech companies in the press. Thus “tech” is no longer a meaningful distinction.
And yet there are meaningful distinctions between how companies use tech.
What if you could cherry pick the companies in all industries who are using tech at the core of their growth and revenue strategies? Companies who move beyond the marginal gains of greater efficiency from digitization. Companies who reinvent their business models so that tech underpins how they make money.
In the examples above, Amazon, Youtube, Zillow and Lyft are all platform businesses. They connect producers such as vendors, video producers, property owners, and car owners to consumers. This democratization of access to markets has disrupted cloistered industries and handsomely repaid the companies who made it all possible.
That’s exactly the type of company that Applico analyzes in Platform Insights. With this data set, Applico has created a systematic methodology for identifying these platform businesses that use technology to create highly scalable businesses defined by defensible network effects and winner-take all dynamics. It’s a big business for the companies themselves, and just as lucrative for investors willing to invest in them.