We don’t think most people really understand Facebook yet. It is the most powerful network effects company we’ve ever seen, with no less than six of the thirteen known network effects currently working in its favor. On top of that, Facebook has fortified itself with all three other defensibilities: brand, scale, and embedding. Network effects have defined Facebook throughout their history. 10 years ago we wrote that Google should buy Facebook at any cost because of their powerful network effects — and time has more than vindicated the argument. More than any other factor, Network Effects predict the future of Facebook. Read the full case study here. 9