What are "network effects" and why are they important for these stocks?

Network effects occur when a product or service becomes more valuable as more people use it. For the companies in this collection, each new partner or customer that joins their ecosystem makes the entire platform more valuable for everyone. Think of social networks that become more useful as your friends join, or payment networks that become more convenient as more merchants accept them. Companies with strong network effects often enjoy sustainable competitive advantages and can be harder for competitors to displace.

What makes collaborative business models different from traditional competition?

Traditional competition follows a "win-lose" approach where companies directly fight for market share, often leading to price wars and shrinking profit margins. Collaborative business models create "win-win" situations where companies build platforms that enable other businesses to succeed. Rather than capturing all value themselves, they create ecosystems where partners can thrive, expanding the total market size. This approach often leads to more sustainable growth, higher customer loyalty, and stronger competitive moats through partner lock-in and network effects.

How do these companies make money if they're focused on helping their partners succeed?

These companies generate revenue through various models while supporting partner success. Many charge platform fees, subscription costs, or take a percentage of transactions that flow through their ecosystem. Some provide core services for free while charging for premium features, or they monetize through revenue-sharing arrangements with partners. The key insight is that by helping partners and other businesses succeed, they create a much larger economic pie from which they can capture value, rather than fighting for a larger slice of a smaller pie.

What does "high switching costs" mean for investors?

High switching costs refer to the difficulty and expense customers face when changing from one product or service to another. For investors, companies with high switching costs often enjoy more stable revenue streams and customer relationships. The collaborative companies in this collection create powerful switching costs when businesses deeply integrate with their platforms or when large partner ecosystems form around them. For example, a company using Microsoft's cloud services with custom applications built on that platform would face significant time, money, and operational disruption to move to a different provider.

Why is AI increasing the importance of partnerships and collaborative ecosystems?

AI systems are incredibly complex, requiring specialized expertise in hardware, data management, model development, and industry-specific applications. Few companies can excel across this entire spectrum. The most successful AI implementations involve partnerships where companies contribute their specialized strengths: some provide the computing infrastructure, others supply the data or algorithms, while others focus on industry-specific applications. Companies that can create and nurture these collaborative AI ecosystems often capture significant value as the technology advances and becomes more widely adopted across industries.

16 handpicked stocks

Win-Win Partners

Looking beyond competition to collaboration, these carefully selected stocks are building the future through powerful partnerships. Our professional analysts have identified companies creating shared value and ecosystem-driven growth that's more resilient than traditional business models.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Microsoft Corporation

MSFT

Current price

$517.43

Its Azure cloud and Windows operating system form the foundation of a vast partner ecosystem for developers and hardware manufacturers.

Salesforce Inc

CRM

Current price

$238.88

The company's AppExchange is a core pillar, creating a massive marketplace of partner-built applications that extend its platform's functionality.

Adobe Systems Inc.

ADBE

Current price

$349.98

Its Creative Cloud is a hub for a creative ecosystem, integrating numerous third-party tools and assets to enhance value for professionals.

Snowflake Inc.

SNOW

Current price

$240.54

NVIDIA Corporation

NVDA

Current price

$188.95

Atlassian Corporation Plc

TEAM

Current price

$151.05

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+15.58%

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About This Group of Stocks

Our Expert Thinking

These companies reject the zero-sum mindset of business. Instead, they build platforms, marketplaces, and technologies designed to help others succeed alongside them. When partners win, these companies win bigger—creating exponential growth opportunities through network effects.

What You Need to Know

Companies in this collection create durable advantages through high switching costs and loyalty. Their collaborative models tend to be more resilient during market fluctuations as they benefit from the collective strength of entire ecosystems rather than standing alone.

Why These Stocks

We've selected industry leaders known for robust partner programs and strategic investments in third-party success. Each company has proven its ability to create platforms where others can build and thrive, especially in high-growth areas like AI, cloud computing, and digital payments.

Group Performance Snapshot

15.58%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 15.58% over the next year.

16 of 16

Stocks Rated Buy by Analysts

16 of 16 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔄

Network Effect Superpowers

These companies don't just grow—they multiply. As their partner ecosystems expand, their platforms become more valuable, creating a powerful flywheel effect that's hard for competitors to replicate.

🛡️

Built to Weather Storms

When thousands of partners and customers are deeply integrated into a platform, they don't leave easily. These stocks tend to have stickier revenue and more resilience during market downturns.

🚀

AI's Secret Enablers

The AI revolution isn't powered by solo players. These companies are creating the collaborative infrastructures and partnerships that make advanced AI applications possible across industries.

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