Bleeding Edge

AAA

DEFINITION of 'Bleeding Edge'

A product or service that is so new it has not been widely adopted by consumers and therefore carries a higher degree of uncertainty as to how it will fit in with existing goods and services.

Something described as bleeding edge would be considered more advanced than something considered "cutting edge". The higher degree in risk associated with the product or service means that the consumer might be "cut" by using such a new good if it fails to gain market acceptance. The term is often used to refer to new technology.

BREAKING DOWN 'Bleeding Edge'

For example, a new cell phone could be considered bleeding edge if it is the first of its kind. Consumers used to older cell phones will be uncertain as to how to use it, how it will be supported and what extra costs might be associated with using it.

Businesses that adopt bleeding edge technology that later becomes widely adopted may see an advantage from being a first-mover; however, if the bleeding edge technology is not widely-adopted the business will have spent significant resources on something that won't work. This presents businesses with a difficult choice: invest in bleeding edge technology that might ultimately fail, or don't invest and risk having obsolete technology if the bleeding edge technology becomes the industry standard.

RELATED TERMS
  1. Obsolescence Risk

    The risk that a process, product or technology used or produced ...
  2. Early Majority

    The first sizable segment of a population to adopt an innovative ...
  3. Visual Basic For Applications - ...

    A computer programming language developed by Microsoft which ...
  4. Dotcom

    A company that embraces the internet as the key component in ...
  5. White Elephant

    Any investment that nobody wants because it will most likely ...
  6. New Economy

    A buzzword describing new, high-growth industries that are on ...
Related Articles
  1. Active Trading Fundamentals

    How The Power Of The Masses Drives The Market

    Market psychology is an undeniably powerful force. Find out what you can do about it.
  2. Entrepreneurship

    The 10 Greatest Entrepreneurs

    These 10 entrepreneurs' names will live on long into the future - perhaps even after their enterprises are gone.
  3. Economics

    5 Steps Of A Bubble

    Bubbles are deceptive and unpredictable, but by studying their history we can prepare to our best ability.
  4. Active Trading

    Sorting Out Cult Stocks

    Is that crazy product going to be the next big thing? Learn how to evaluate these companies here.
  5. Active Trading

    The Ups And Downs Of Biotechnology

    This volatile sector can provide huges gains, but there's also lots of downside.
  6. Professionals

    Top Questions to Ask When Choosing a Robo-Advisor

    Think a robo-advisor might be the right choice for you? Be sure to ask these questions first.
  7. Investing

    Why Google Chromebooks Are a Hit in Schools

    Google Chromebooks have been on a roll in the education technology market. What are the reasons for this success?
  8. Investing

    Dick Costolo Biography

    Dick Costolo is a very polarizing man – half the world credits him with saving Twitter Inc. (TWTR) from its own popularity and making initial investors rich while the other half blames him for ...
  9. Investing

    Should You Trust a Robot to Manage Your Money?

    Robo-advisors offer several benefits, but should investors trust a computer to manage their investments?
  10. Fundamental Analysis

    The Insurance Industry's Future in Visual Tech Investment

    A growing number of automobile insurers are choosing to invest in developing digital infrastructure.
RELATED FAQS
  1. How has investing in the Internet sector evolved over time?

    Investing in the Internet sector has become more conservative over time. It reflects a more measured approach that shies ... Read Full Answer >>
  2. How have technical skills shifted over the past century in the workforce?

    Several changes have transformed the skills required of the modern workforce. The influence of technological change has undoubtedly ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  2. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  3. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  4. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
  5. Widow's Exemption

    In general terms, a widow's exemption refers to the amount that can be deducted from taxable income by a widow, thereby reducing ...
  6. Wedding Warrant

    A warrant that can only be exercised if the host asset, typically a bond or preferred stock, is surrendered. Until the call ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!