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Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.
In your quest for a winning stock portfolio, consider prioritising companies whose products boast increasing usage statistics.
This isn't just a hunch; it's a data-driven approach that sheds light on actual consumer behavior and offers valuable insights into a company's future potential.
(note: previous blog on Google trend help access the awareness & consideration level for the companies' products & services, this blog help access the conversion & loyalty level of the company's marketing funnel.)
Why Usage Stats Matter:
BuiltWith's Trends platform (https://trends.builtwith.com/) tracks the usage of various technologies and platforms across millions of websites, providing a real-time snapshot of their popularity.
A rising usage trend indicates several things:
Growing demand: More people are using the product, suggesting its value resonates with the market.
Market traction: The company is successfully capturing market share and expanding its user base.
Potential for future growth: If adoption is increasing now, it's likely to continue in the future, translating into revenue and profit growth for the company.
Examples of Companies with Rising Usage:
HubSpot: This marketing and sales platform boasts a steadily increasing usage trend on BuiltWith (https://trends.builtwith.com/analytics/Hubspot). This suggests its cloud-based solutions are gaining traction in the competitive CRM market.
Microsoft Azure: Contributing a significant 40% to Microsoft's revenue in 2023, Azure's usage trend is also on the rise (https://trends.builtwith.com/hosting/Microsoft-Azure). This cloud computing platform is clearly finding favor with businesses seeking scalability and flexibility.
On the other hand, if the company's products' usage statistics is on a clear downward trend, it could signal trouble.
IBM Enterprise Marketing
Remember:
When using BuiltWith, always tick the "All Internet" option to get the most comprehensive data.
Beyond BuiltWith:
While BuiltWith provides valuable insights, consider supplementing your research with other sources like W3Tech, which offers data on technology adoption trends over the past 12 months.
Conclusion:
By prioritizing companies with rising usage statistics, you can base your investment decisions on actual consumer behavior, increasing your chances of building a winning portfolio that fuels your financial goals. Remember, usage data is just one piece of the puzzle, but it's a powerful one that shouldn't be overlooked.
Looking for a set of checklists to identify great companies for your portfolio?
