Matt Frankel

I've been calling it the cheapest Mag7 stock for the past year or so.

But to be fair, their AI models really didn't have that much to do with my thesis.

It's really just the strength of the Google brand, what they're doing in cloud and things like that.

It wasn't their LLMs.

My longer answer is, it depends what all these look like valuation-wise and revenue-wise and momentum-wise when they go public.

That has a lot to do with it.

Are we talking about a profitable open AI that has $70 billion in revenue, or are we talking about a company that's still hemorrhaging money?

For me, it really depends how the IPO process shakes out.

One of the most misunderstood parts of Klarna, particularly in the space, is that, one, they're a bank.

Number two, they're trying to disrupt more than the buy-now-pay-later space.

Just to put some numbers out there, about 2% of payment volume in the U.S.

overall retail is buy-now-pay-later today.

Credit and debit cards combined for about 70%, which is about half and half credit and debit.

The subscription products are not cheap, over $500 a year for the top-tier membership.

But as you mentioned, they include things like airport lounge access.

Another big one is travel insurance, which I currently pay over $400 for an annual travel insurance policy.

They're competing with cards like the Amex Platinum card that charges $895 a year.

It might be a little more of a value than they're getting credit for.

That's just one example of how they're trying to disrupt.

I'm not 100% sold that the membership program is going to be a massive success, but it's an interesting approach to try to attract customers who might want some of these perks, but don't want to sign up for such a high-end credit card.