Travis Hoium
Travis Hoium
No personal profile
0Follow
1040Followers
0Topic
0Badge
avatarTravis Hoium
10-05 19:01

From Aggregation to Network Effects

Last week, I wrote Disaggregating the Aggregator, explaining how I was viewing the possible AI agent-led disaggregation of companies that currently aggregate demand in the smartphone era. These are companies like $Uber(UBER)$ ( ▲ 0.34% ), $Alphabet(GOOG)$ ( ▲ 1.62% ), $Netflix(NFLX)$ ( ▼ 1.16% ), $DoorDash, Inc.(DASH)$ ( ▲ 3.83% ), etc. My shorthand is that it’s the apps that we choose to interact with every day. But in that article, I came away relatively bullish on companies that had some kind of tie to the physical world. Uber with drivers, $Zillow(Z)$ with homes, etc. As I’ve t
From Aggregation to Network Effects

What I’m Buying: October 2026

Here are the 25 companies currently standing out to me for their growth potential, market position, or long-term asymmetric upside. $Spotify Technology S.A.(SPOT)$ — Audio streaming platform with more than 600 million active users worldwide. $Coinbase Global, Inc.(COIN)$ — A leading blockchain platform with the balance sheet and management team to benefit if crypto, blockchain and Web3 continue expanding over the next decade. $Portillo’s Inc.(PTLO)$ — A fast-growing restaurant brand built around hot dogs, burgers and a scalable store model. $Virgin Galactic(SPCE)$ — A space tourism company pursuing a new category of comm
What I’m Buying: October 2026

Rates are up, and that's bad news

Coming into 2026, the promise was for lower interest rates and a booming economy. But reality has been far different. The 10-year treasury yield, which is a proxy for everything from mortgages to corporate debt, continues to rise and is now at a level not consistently seen since 2001. And mortgage rates have spiked more than a full percentage point since March and will likely climb over 7.25%, or more, in the coming weeks as higher rates move through the system. What does all of this mean for the market? I’ll get to that in a moment. Higher Rates and the Market Like it or not, interest rates are important for the economy and the market. Lowering interest rates is like adding fuel to a fire. But raising rates is like snuffing a fire out. And over the last few weeks, rates have risen rapidly
Rates are up, and that's bad news

ORCL' DEBT SPIRAL

⚠️ This Is What a Downward Spiral Looks Like Growth depends on debt. Debt gets more expensive → the stock falls → equity becomes a weaker backstop → but growth still requires more spending → so you borrow more → and financing gets even more expensive. 🔄 That’s the spiral. $Oracle(ORCL)$ is now at the center of this debate. 🦔 Its 5-year CDS spread reportedly hit 230 bps, more than 4× the broader investment-grade index at 55 bps and dramatically higher than a year ago. At the same time, Oracle is committing massive amounts of capital to AI infrastructure. 💰 The key question isn’t simply whether AI demand is real. It’s whether the expected growth can generate enough cash flow to support the debt required to fund it. 📉 S&P’s BBB- rating leaves onl
ORCL' DEBT SPIRAL

Can Muse become the new point of aggregation?

The disruption story brewing in the market for the last three years really took hold when $Meta Platforms, Inc.(META)$ ( ▼ 3.34% ) Muse was released on September 8, 2026, and rapidly went to #1 in the app store. People were posting pictures of Muse buying clothes, re-booking flights, making calls to restaurants, and many other phenomenal use cases. I called it AI’s Mass Market Moment, and I think that’s true. I also think others will follow. Moats don’t last for long in AI. But we can see how we may interact with technology in the future, and it may not be through the apps we use today. This is creating both opportunities and risks for the companies we’re investing in. $Amazon.com(AMZN)$ ( ▲ 0.12% ) has t
Can Muse become the new point of aggregation?

Three Market Takes I’m Watching $UBER $COIN $MGM

🐯 Hey Tigers! Three very different setups I’m watching right now. 👀 🚗 $Uber(UBER)$ I think the “Uber gets disrupted by AI” story could eventually look pretty silly. The disruption isn’t showing up in the numbers yet, but more importantly, I’m not convinced the mechanism makes much sense. Imagine telling Muse: “I’ll pick up riders if you have some.” Someone nearby asks Muse for a ride, and Muse responds: “Travis is going to pick you up and take you to the bar. He seems nice, I’ve read his emails.” 😂 Could Uber’s bargaining power change over time? Absolutely. But does that mean a company sitting at the center of a massive transportation network suddenly becomes irrelevant? I’m not convinced. The bigger question is who actually benefits if rates go h
Three Market Takes I’m Watching $UBER $COIN $MGM

$ONON +10% Turns Its Long Term Bull Case Up a Notch

🚀 $On Holding AG(ONON)$ jumped more than 10% today, and there are three big reasons behind the move. 1️⃣ High teens revenue growth through 2029 Management is now guiding for high teens revenue growth through 2029. That gives investors a much clearer view of the company's longer-term growth trajectory, rather than forcing the market to focus only on the next quarter. 📈 2️⃣ 65% gross margins through 2029 This may be the more important number. Management sees gross margins holding around 65% through 2029, which would leave plenty of room for operating leverage as revenue scales. For a consumer brand still expanding globally, that kind of margin profile is a major part of the long-term thesis. 💰 3️⃣ A $1 billion buyback Then there is the headline-gra
$ONON +10% Turns Its Long Term Bull Case Up a Notch

🤔 Is Muse actually good for $META's business?

At first glance, it looks like an obvious win. Today, $Meta Platforms, Inc.(META)$ essentially captures the full value of the advertising transaction. Advertisers pay Meta to connect products with consumers, while creators don't take a direct cut of that ad spend. For advertisers, it's effectively a customer acquisition cost. And as long as the economics work, Meta can keep pushing that CAC higher. 🔥 That's what makes the advertising business so powerful. But Muse could introduce a very different model. 🛒 The Muse model Instead of taking advertising dollars upfront, Meta could potentially take a small percentage of commerce transactions happening through Muse. Imagine a brand like Ridge is willing to spend $20 to acquire a customer buying an $80 w
🤔 Is Muse actually good for $META's business?

Value Is Hiding In Plain Sight

Whether you’re investing in hyperscalers, neoclouds, semiconductors, or energy stocks, it’s all about AI. The AI buildout is driving growth, margin expansion, and higher stock prices. But I’ve been uncomfortable with the footing that trade is built on, given the debt even hyperscalers are taking out, rising interest rates, and lack of moats. So, I’ve focused on what I think are more durable businesses with a strategic advantage trading at a reasonable price. And the deals today are looking better than they have in years. More on that in a moment. Finding Value Themes are a big trend on the stock market today. Investors are chasing the story of the month and then moving on to the next story with little regard for whether a business is performing well or not. We saw this with nuclear and qua
Value Is Hiding In Plain Sight

If Everyone Wins, Everyone Loses

If there’s no moat, who wins in AI? In a healthy supply chain, very few companies are making an outsized profit because high profits get competed away. Without some kind of moat or competitive advantage, there’s no pricing power or differentiation. There’s usually one power player, and everyone else is competing around the margins to gain a foothold as a commodity supplier, a niche modular supplier, a distributor, or play some other important, but often less profitable role. The iPhone is the perfect example of this. $Apple(AAPL)$ makes a gross margin of nearly 40% on its hardware, and the business overall has a 32.6% operating margin. $Samsung Electronics Co., Ltd.(SSNLF)$ is far less profitable in smar
If Everyone Wins, Everyone Loses

Being Long $NVDA and $AMD Means Being Long OpenAI and Anthropic

Here’s the part of the AI trade I think investors are underestimating. If you're long $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$ $Taiwan Semiconductor Manufacturing(TSM)$ $NEBIUS(NBIS)$ $Bloom Energy Corp(BE)$ and other AI infrastructure names, you're ultimately long the spending decisions of the biggest AI model companies. OpenAI and Anthropic matter enormously. They are among the companies driving the demand for compute, chips, power and data-center capacity. If their growth expectations or funding plans change, the impact can travel through the entire AI infrastructure chain. R
Being Long $NVDA and $AMD Means Being Long OpenAI and Anthropic

AI Safety & The AI Rug Pull

Investing is about risk and reward. And I think the current state of the AI buildout has more risk built in than many investors want to think. Those risks came to light over the weekend. In essence, Dario’s argument is that AI development should be “paced” in three ways: Embedded evaluators to verify the safety of models. This is similar to how big banks are regulated today. AI labs coordinate to create safety frameworks and limit “unchecked AI progress”. Coordination globally. I have a lot of thoughts, and I don’t think there are 100% certain answers to the safety, risk, or future development of AI. But I do think the argument and the fact that all of the major lab CEOs seemed to agree bring forward some major risks for investors. And it seems to be pulling the rug out from under some of
AI Safety & The AI Rug Pull

AI's Mass Market Moment

$Microsoft(MSFT)$ was formed in 1975, and the PC revolution started only a few years later. But it would take 24 years before half of the homes in the U.S. had a PC. In 1994, the first online payment was made, but it was 12 years before $Shopify(SHOP)$ was founded. $Amazon.com(AMZN)$ launched in 1994, and even today, only about 17% of purchases are made online. $Apple(AAPL)$ iPhone launched in 2007 when nearly everyone already had a phone in their pocket, and it still took six years for half of Americans to adopt the smartphone. Consumer adoption of products often takes longer than we think or remember, which is both an
AI's Mass Market Moment

$TSLA Has the Cheaper Car. $UBER May Have the Better Economics

When it comes to autonomous vehicle economics, I think we may be focusing on the wrong number. Vehicle cost is not the biggest variable. Utilization is. A robotaxi spends far more of its life generating revenue than sitting in a driveway, so how often that vehicle is actually carrying passengers can completely change the economics. Here’s the simple example from my model 👇 🚗 $70K vehicle → 30 rides per day vs. 🚙 $30K vehicle → 25 rides per day The more expensive vehicle can still generate better economics because it is being utilized more heavily. That’s why trying to win the market simply by making the vehicle cheaper can backfire. If lower pricing reduces the number of rides or revenue generated per vehicle, the cost advantage starts getting overwhelmed by utilization. And this is where
$TSLA Has the Cheaper Car. $UBER May Have the Better Economics

$TSLA Wants Efficiency As Riders Want Convenience

$Tesla Motors(TSLA)$ is coming at robotaxis with a simple thesis: Efficiency wins. Take the biggest part of the demand curve — one or two riders, short trips, dense metro areas — and drive the cost per ride as low as possible. Tesla’s Cybercab is clearly designed around that philosophy, with a small two-seat configuration and a focus on low operating costs. But there’s one problem. People don’t always choose the cheapest option. If cost were the only thing that mattered, everyone would take the bus. People pay for convenience. Comfort. Safety. Cleanliness. Predictability. Privacy. And sometimes, simply a better experience. That’s where $Uber(UBER)$ has an interesting advantage. Uber doesn’t need to provid
$TSLA Wants Efficiency As Riders Want Convenience

The Oil Price & Interest Rate Problem

Over the past year, historic spending on the AI buildout has arguably kept the economy afloat. Yet, despite that historic spending, real GDP growth (growth on top of the rate of inflation) was just 0.5%, 2.1%, and 1.5%, respectively, in the past three quarters, well below what experts thought it would be coming into the year. That’s not a great rate of growth given the level of capital investment and there are plenty of signs consumers are being squeezed by high oil prices and interest rates. The problem is, I don’t think either can or will get any better anytime soon. More on that in a moment. Why Gasoline and Interest Rates Will Stay High One of the big misses a lot of prognosticators and CEOs made coming into 2026 was expecting interest rates to be lowered, boosting economic growth. For
The Oil Price & Interest Rate Problem

$JOBY Just Put Its Unit Economics on the Table

$Joby Aviation, Inc.(JOBY)$ is making the eVTOL story a little easier to actually model. A new unit economics tool lets you play with the numbers yourself — how many rides per day does an eVTOL need, what price per ride makes the business profitable, and how quickly can the aircraft pay for itself? That last part is especially important. The site now has two models: ✈️ eVTOL Economics Test ride volume, pricing, profitability and payback period. 🚗 Autonomous Vehicle Economics Look at the potential ROI of an autonomous vehicle. The idea is simple: instead of just talking about the future of air taxis and autonomy, put the assumptions into a model and see what actually has to happen for the economics to work. And payback period may be one of the most
$JOBY Just Put Its Unit Economics on the Table

Tesla’s Robotaxi “Launch” & The Autonomy Business Model

A large percentage of the Asymmetric Portfolio is invested in companies that could have major tailwinds from autonomous driving. My thesis is that many companies will make autonomous vehicles, leading to the modularization of components and technology, and aggregators like $Uber(UBER)$ ( ▼ 0.26% ) and $Lyft, Inc.(LYFT)$ ( ▼ 3.24% ) being huge winners as supply is commoditized. The view of a more autonomous future is consistent with many investors, but how I envision that future is very different. The market still thinks that $Tesla Motors(TSLA)$ ( ▼ 5.92% ) — who first promised Teslas could soon drive across the country fully autonomously in January 2016 — will d
Tesla’s Robotaxi “Launch” & The Autonomy Business Model

Cost Over Safety. That’s the Tesla FSD Debate. 👀

The argument around $Tesla Motors(TSLA)$ ’s FSD has become pretty simple. Cost vs. safety. Tesla’s approach has always leaned heavily toward making autonomy work with a simpler hardware stack. But real-world driving isn’t predictable. When something goes wrong, safety often comes down to redundancy — having another system available when the first one fails. That’s why the FSD debate isn’t really just about whether the system can drive. It’s about whether the system has enough backup when the real world throws something unexpected at it. Tesla says FSD is still supervised and does not make the vehicle fully autonomous. That distinction matters. The bigger question is whether a lower-cost approach can eventually deliver the level of redundancy peopl
Cost Over Safety. That’s the Tesla FSD Debate. 👀

Apple Is Raising Prices. The Real Question Is Volume. 🍎

$Apple(AAPL)$ ’s recent revenue growth hasn’t only come from selling more iPhones. A big part of it has been getting customers to spend more and moving them toward higher-priced models. That works — until the price increases start changing buying behavior. With potential price hikes reaching 20–30%, the next step gets much more interesting. 📈 Higher prices can keep revenue growing. 📉 But if those prices start hitting unit demand, volume could take a meaningful hit. That’s the balance I’ll be watching over the next 18 months. Can Apple keep growing revenue faster than it loses volume? 👀
Apple Is Raising Prices. The Real Question Is Volume. 🍎

Go to Tiger App to see more news