How Companies Make Money
Eli Lilly earns on selling far more doses of one compound, tirzepatide (Mounjaro and Zepbound), at lower prices while its patent is in force. Watch whether volume grows faster than price falls.
How Companies Make Money
Netflix earns when revenue grows faster than the cost of the new shows it must keep making or licensing. Watch whether revenue grows faster than content amortization, the yearly charge for those shows.
How Companies Make Money
Costco earns on the fee members pay to shop there. Watch whether paid members keep growing and the renewal rate stays steady.
How Companies Make Money
TSMC earns on building the most advanced chips at a yield almost no rival can match. Watch the gross margin.
How Companies Make Money
Nvidia sells chips, but it earns on CUDA, the software that makes its chips hard to leave. Watch whether the gross margin holds once chip supply meets demand.
How Companies Make Money
What a company sells is almost never what it earns on. Once you can see that gap, the business world stops looking like a thousand separate puzzles and starts to look like a handful of shapes that keep repeating.