      onlycfo.io · 2025-04-07
      · 422d
    

AI Eats Moats

Technology is no longer a defensible moat in 2026 due to AI commoditization of software; the article identifies five remaining durable moats (distribution, trust, data, scale, network effects) and argues that distribution is the primary driver of long-term competitive advantage. Public companies with the highest valuations spend 1.3x more on S&M (distribution) than R&D (innovation), with distribution becoming the critical lever for sustainable growth endurance and revenue retention.

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Metrics in this report

Revenue Threshold for Distribution Focus

25000000dollars

threshold

Point at which companies begin spending more in absolute dollars on distribution than innovation

S&M to R&D Spend Ratio

1.3ratio

average

Public companies with highest revenue multiples

Valuation Multiple (General Average)

6.8revenue multiple

average

Public company market average

Valuation Multiple (High S&M/R&D Ratio)

3.4revenue multiple

average

Top 10 companies with highest S&M/R&D spend ratio (>$2.50 per $1)