These are the companies with network effects that are trading at attractive prices based on a cursory estimate of their fair value, and are also not already in my portfolio. With a brief description of their network effects.
And the two that look the most interesting right now.
*Current price is the closing price as of August 13, 2025
Airbnb (ABNB)
Current Price = $124.55
Fair Value = $130
Network Effects
Two-sided Marketplace: More hosts attract more guests; more guests demand attracts more hosts, improving liquidity and search matching.
Amazon (AMZN)
Current Price = $224.54
Fair Value = $245
Network Effects
Marketplace
Two-sided Marketplace: Buyers ↔ sellers flywheel. Greater selection lowers search cost and increases conversion, drawing more sellers.
Data Effects: Clickstream, conversion, and logistics data improve recommendations, ads targeting, and fulfillment.
AWS
Platform: Developers and third-party vendors build on AWS; more services & tools attract more builders, which attracts more partners/content.
Advertising
Two-sided Marketplace: Advertisers ↔ shoppers. More shopper intent data increases ad ROAS, attracting more advertisers, which improves ad relevance.
Booking Holdings (BKNG)
Current Price = $5,447.92
Fair Value = $5,700
Network Effects
Two-sided Marketplace: Travelers ↔ accommodations. Dense supply improves availability & price discovery, boosting traveler traffic and property sign-ups.
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