What is the underlying logic behind using the number of active users as the ultimate asset for a digital platform?

Question

Accepted Answer

The platform's value increases non-linearly with each user due to network effects, and every user represents a probability of future cash flow.

Answer

Each active user guarantees a fixed, immediate net income payout from subscriptions.

Answer

Normalizing market cap by user count makes it harder to compare companies of different sizes, keeping competitive strategies hidden.

Answer

The user count is directly equivalent to the physical stock held by the company.

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