TechnologyJuly 4, 2026

moat

/moʊt/

Definition

A durable, competitive advantage that protects a company’s market share and profitability from rivals.

Etymology

Originating from Middle English 'mote', likely from Old French 'mote' meaning a mound or embankment. It evolved from the physical defensive ditch surrounding a castle to the modern metaphorical business usage describing a protective barrier against competitors.

In the news

The article uses the term to describe how certain software companies maintain a competitive edge, noting that not all such protective advantages are equally effective. It highlights why investors look for these barriers to entry when evaluating long-term business strength.

Veteran Tech Analyst: The Market Has Wrongly Left Software for Dead in the AI Rotation

Read the full article ↗

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