This Week in Startups

Spotify Founder’s Transition and Its Implications

"Longtime CEO is handing off the CEO role to two lieutenants and becoming executive chairman to help build more big companies in Europe. It's a $143 billion company and his transition marks the culmination of an incredible run."

The discussion covers the strategic decision by Spotify’s longtime CEO to transition from the CEO role to executive chairman. The commentary reflects on the founder’s long and impactful tenure, the company’s evolution—from pioneering music streaming to disrupting the podcasting space—and the potential benefits and challenges such leadership changes bring for long-term shareholders.

Bullish Outlook on Wealthfront IPO

"I'm very bullish on this, Jason. I'm a shareholder. Andy Ratcliffe has been on this program no less than five times... and I've elected not to sell before the IPO."

The speakers discuss Wealthfront going public and highlight the company's strong business fundamentals including rapid growth, profitability, and a two-pronged revenue model (cash management and investment advisory). The bullish sentiment centers on its attractive fee structure relative to traditional money managers and a growing Gen Z customer base, though the company remains sensitive to interest rate movements.

OpenAI Ad Monetization Strategy as a Revenue Catalyst

-5.57%current return

"Ads are coming to ChatGPT. And the reason I took the over on 12 months is not that I didn't think they were going to do it, just how quickly would they do it?... while it's thinking, it's showing you the ads."

Discussion centers on OpenAI’s pursuit of ad monetization as part of its free user model. The conversation highlights clues such as the hiring of an ad chief, the launch of new ad-friendly features like interstitials during wait times for responses, and product enhancements that incorporate advertisements. This commentary suggests that if OpenAI can monetize its massive user base with even modest ad revenue per user, it could unlock significant long-term value.

Mispriced TikTok Valuation Trade Opportunity

+10.27%current return

"If you told me I could buy shares of TikTok right now for $14 billion, I would sell every share I own of every company and I would plow or I'd sell 80% of every holding I have and put it in there because one times revenue makes no sense..."

The speaker argues that the current reported valuation of TikTok at $14 billion appears extremely low when measured against its revenue multiples. He suggests that, if given the opportunity to invest in TikTok shares at that valuation, investors should reallocate heavily into TikTok because the mispricing could lead to a massive upside. Although TikTok is not publicly traded and lacks a standard ticker, the comment functions as a strong trade call backed by comparable social media and e-commerce multiples.

NVIDIAs Strategic $100B Partnership with OpenAI Signals Expansion Potential

-0.25%current return

"NVIDIA and OpenAI announced a strategic partnership. They're going to deploy 10 gigawatts of NVIDIA systems, with NVIDIA intending to invest up to 100 billion dollars progressively as each gigawatt is developed. The first gigawatt is set for deployment in the second half of 2026, aiming to close the gap against competitors and build a robust compute infrastructure for next-generation AI applications and self-driving technologies."

The podcast details a landmark strategic partnership between NVIDIA and OpenAI, where NVIDIA commits to a progressive investment up to $100B as it scales its compute capacity. The deal, with plans to deploy 10 gigawatts of GPU systems (with the first gigawatt coming online by the latter half of 2026), is portrayed as a significant competitive move against rivals like Microsoft and positions NVIDIA to benefit from increased demand in AI and self-driving technologies.

Google Integrates Gemini AI into Chrome to Transform Search

-0.55%current return

"Google is baking Gemini into Chrome. Thats the big headline. Itll be in the upper right... Its going to help you summarize web pages... turning your search and URL bar into effectively the chat interface you see with most AI products."

The discussion shifts to Googles impending integration of its Gemini AI into the Chrome browser. This move aims to enhance user experience by enabling functionalities such as web page summaries, advanced history search, and seamless integration with other Google products like Calendar and YouTube. The strategy is viewed as a strong competitive play that could drive significant shifts in user behavior and increase the stickiness of Googles ecosystem, reinforcing a bullish outlook on Alphabets ability to innovate within the search market.

Metas New Generation AI Glasses Signal AR Innovation

-7.82%current return

"Meta's AI Glasses. This is the thing we talked about on the show quite a lot, Jason. Just to remind everybody, they dropped an earlier version of their Ray-Ban Meta Glasses ... I think it's an enormous step forward. I share all your privacy concerns with these new meta Ray-Ban displays. By the way, $800 to start ..."

The hosts discuss Metas revamped Ray-Ban Meta Glasses which now feature an integrated display, AR functionality, and haptic controls that allow users to operate without constantly checking their phones. While they underscore privacy concerns and the 'creepy' factor of covert recording, the conversation also positions this upgrade as a significant technological leap compared to earlier products like Google Glass. The discussion hints at AR becoming mainstream and implies potential long-term benefits for Meta, supporting a bullish view on Metas innovation trajectory.

Company Commentary on Meta AR Glasses

-7.82%current return

"Meta's AI Glasses. This is the thing we talked about on the show quite a lot, Jason. Just to remind everybody, they dropped an earlier version of their Ray-Ban Meta Glasses... And then what I found with the live stream was when people were asking me questions, I'm like looking down at my phone. So it's a terrible experience. But I guess the reason it's not dumb is because this new version... It's bringing some of the stuff that I love from Google Glass to now, which is like live translation."

The hosts discuss the evolution of Meta's AR glasses, highlighting the upgrade from the earlier Ray-Ban Meta Glasses to a newer version with built-in screens, AR head-up display, and haptic control. Although privacy concerns are raised, the technological leap is seen as a significant product advancement for Meta that could strengthen its long-term positioning in the wearable tech and AR space.

Company Commentary: Netskope IPO Strong Debut

-6.89%current return

"Netskope, the cybersecurity unicorn priced at the top end of its raised range, $19 a share and then immediately rose 18% in its first day and then today, its second day of trading was up another 6% or 7%."

Speaker 0 highlights Netskope's impressive IPO performance with strong first and second day gains, underscoring robust market sentiment towards tech IPOs in the cybersecurity space.

Carvana Redemption: From $3.50 to $400 and Beyond

-12.00%current return

"My big hit was that I got into Carvana in May of '23 when it had dropped as low as $3.50 and now it's come all the way back to $400. When key insiders even started buying during the trough, it sent a strong signal to investors."

Eric Jackson recounts his successful trade in Carvana (ticker: CVNA), emphasizing the dramatic turnaround from a low of $3.50 to nearly $400, supported by insider buying. While not a direct call to buy now, his commentary provides investor color on the potential for significant recovery and highlights the importance of management and insider alignment in distressed stocks.

Trade Call: OpenDoor (OPEN) Re-rating on Robust Turnaround Catalysts

-21.57%current return

"I came out with this tweet on July 14th when the stock was trading at about 88 cents. I built my position then and argued that, given the upcoming board changes, improved management alignment and the absence of national iBuying competition, the market would re-rate OPEN to around $82 per share. In less than three months, after a period of heavy retail attention and volatility, the stock moved sharply higher."

Eric Jackson outlines a clear trade call on OpenDoor (OPEN), pointing to its historic low public price followed by a rapid recovery and upcoming catalyst events. His rationale emphasizes management changes, improved board skin-in-the-game (with notable insider buying) and the absence of direct competition since other players exited iBuying. He asserts that these factors set the stage for a marked re-rating, aiming for a target of $82 per share. His active participation—with plans to sell some shares later to cover his base—signals high conviction in the current turnaround at OPEN.

Strong Trade Call on Google Due to AI Transition

+3.32%current return

"Alphabet reached $3 trillion in market cap, becoming, I believe, the fourth company ever to do so... I bought, let's see, 1,000 shares at 100. And on December 6th, 2023, I bought another 1,000 shares at 130. That $230,000 in Google shares I day traded are now worth... In two years... I mean, they're now worth $268,000. It was a very simple trade. They have DeepMind. They created a lot of the Marden LLMs... I watched over 20 years as they went from the 10 blue links to when you typed in Uber stock price, it would just give you the stock price."

Jason Calacanis details his personal trade on Google (GOOGL), highlighting a strong buy based on Google’s transition in search through AI innovations (including DeepMind). He noted a 115% return over two years as a testament to the company’s strategic evolution, underscoring his high conviction in the stock.

Open Door Trade Call: Limit Orders and Price Target

"I YOLO'd, as I said here on the pod, a Cranberry 25K into Open Door. I put in some limit orders at $6, $7, $8, or $9, betting that the stock would rebound to $10. Sure enough, it broke down yesterday, filling all my limit orders and leaving me with 2,000 free shares."

The speaker executed an actionable trade in Open Door by using a $25K position to cover his base with limit orders at incremental price levels between $6 and $9. His plan was to capture additional upside if the stock reached $10, and his orders were filled, effectively giving him 2,000 bonus shares. This presents an immediate short-term bullish opportunity for public market investors.

Scaling Out of Open Door Technologies Position

+20.48%current return

"I YOLO'd into Open Door for 50K. I just got the alert before I got on the show that my first 1,000 shares sold at $6. So when it hits $7 or $8, I'll sell another 1,000, and when it hits $10, I'll sell another 1,000 to clear my cost and then let the remaining shares run."

Jason Calacanis describes a clear trade execution for Open Door Technologies (ticker: OPEN). He outlines a scaling-out approach by setting incremental sell orders at specified price points ($6, $7/$8, and $10) to lock in profits and manage risk on his initial $50K investment.