Table of contents
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 & increasing user base.
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.)
Methods to check:
Number of Users/ Customers along the years
a. Investors Relations Presentations, preferably the companies reveal their user trends chart.
It is a good sign when companies reveal their users growth chart on their investor presentations, this usually indicate their confidence in the growth rate and also signal transparency.
Example of companies who show their users chart.
Spotify
source: Q4 24 investor presentation. SPS Commerce
source: Q4 24 investor presentation. Semrush
source: Q4 24 investor presentation. Hubspot
Companies that do not show, includes Braze,
and also Shopify, who stopped revealing the amount of paid subscribers since 2021,
same goes to Netflix who will only reveal their paid subscribers amount when they reached milestone achievements from Q2 2025 onwards.
b. Stockanalysis.com > Metrics > Users
Financial aggregators site like stockanalysis.com provides great visualisation charts,
for most of the companies that continue to reveal their users count, the site will carry these information too.
Spotify
Semrush
For tools and platforms integrated with Public Websites, check their Usage statistics on sites like Builtwith.com
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.
However keep in mind this is more relevant for tools which are integrated with public websites,
whereas for tools like Application Performance Monitoring platforms like Datadog, it may not be as relevant because those tools are primarily used for backend infrastructure, cloud services, and applications—most of which BuiltWith cannot detect.
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 user counts & 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, user counts & usage data is just one piece of the puzzle, but it's a powerful one that shouldn't be overlooked.
✅ Invest with Confidence, add this to your Checklists in IceT.club
Comments