The Intrinsic Value Podcast - The Investor’s Podcast Network cover image

The Intrinsic Value Podcast - The Investor’s Podcast Network

TIVP008: VeriSign (VRSN): The Internet’s Toll Road w/ Shawn O’Malley

Feb 23, 2025
Explore how VeriSign acts like a toll road for the internet, collecting fees from .com and .net domains. Discover the company’s monopoly status, bolstered by hefty investments from Berkshire Hathaway. Learn about its impressive profit margins and cash flow management. The discussion also covers the potential risks from cyberattacks and emerging technologies, along with an analysis of its intrinsic value and market positioning in the domain registration landscape.
01:04:07

Podcast summary created with Snipd AI

Quick takeaways

  • VeriSign maintains a monopolistic position over .com and .net domains, providing stable revenue with gross margins around 90%.
  • The recent acquisition of substantial shares by Berkshire Hathaway signals strong investor confidence in VeriSign's long-term profitability and market stability.

Deep dives

VeriSign's Unique Market Position

VeriSign operates as the monopoly registrar for .com and .net domain names, significantly impacting its business model. The company charges around $10.26 annually for .com domains, creating a robust revenue stream from the hundreds of millions of registered domains worldwide. This pricing structure enables VeriSign to achieve gross profit margins close to 90%, making it one of the most profitable companies analyzed. The steady nature of this revenue, combined with its monopolistic hold on major domains, positions VeriSign as a crucial player in the internet's infrastructure.

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner