Is This the Best AI Play of 2026?

Martin (0:00)

If every one user is more valuable for me, because I have high margins, I can spend much more money on one user than my competitors, because I am making more money out of that user. So it gives them a certain edge, which they could eventually use as well.

LGD Set (0:16)

What's up, everybody? It's LGD Set here, and welcome to Milk Road Stocks, the daily market show that has a new mission in life, become the number one influencer for companies that no one has ever heard about. Today is September 29th, 2026 What the hell is Bending Spoons? Until a few weeks ago, no one at Milk Road or probably even in our audience, although you guys are pretty sharp, knew about this company. But ever since Vincent gave us a deep dive on the business, just a few weeks back, it has caught the eye of other investors here on our team. Today, Martin, our lead researcher, is on the show to present his own in-depth valuation model for this very unique business that basically acquires slow growth software companies and revitalizes them using AI and turns them into very profitable businesses. We get pretty technical on this show, but at the end, Martin will reveal whether he's got this one in his portfolio or not, so make sure you stick with us. If you do want to see what he is investing in right now, it's just a dollar to take a peek at his portfolio at the link below and to catch the next wave of the AI trade whenever it gets going. Martin, good morning. Today, we're going to talk about Bending Spoons, and this is a company that I didn't know existed until a few weeks ago, and Vincent told us about it. I only just realized the last couple of days that I guess it's a matrix analogy, because you're bending the spoon, the little kid is bending the spoon. Although I don't know, maybe that's not what the name is supposed to be, but I assume that that's the main reason that is called Bending Spoons, but we're going to learn a lot more about it today than just what the name is based on.

Martin (1:39)

You're actually right. That's the idea behind it.

LGD Set (1:42)

It is. Okay. It's like using your mind to bend something, or just like that they're going to do something cool, they're going to do something that you didn't think was possible.

Exactly. That kind of thing. Cool. Great.

Martin (1:53)

Today, I'm going to talk about Bending Spoons, obviously. We have been looking at Bending Spoons over the past few weeks, as LG said, and we had a good discussion with Vincent about Bending Spoons because we both really like the company. We both built a different model.

Today, I want to present you with my model, which suggest in my base case that the fair value for this company should be something around 48 bucks, which is 45 percent higher than the current price. So I'm going to walk you through my model and I'm going to share my rational and my assumption so you can make your own opinion and make your own judgment.

LGD Set (2:33)

When you say model, what do you mean? What's the difference between you and Vincent's model? What are your models?

How do you come up with your models?

Martin (2:41)

I think we use the same approach because you have multiple ways how you can build a model. Maybe you are trying to predict their future cash flows, or maybe you are just trying to summarize the different parts of their business at the current value. There are different ways how you can approach this. I think we have similar approach, but we have different assumptions.

I'm going to present my assumptions and why I think these numbers are my own estimates and why I believe that these numbers are relevant and they are fair to have. Got it.

LGD Set (3:18)

Okay, that makes sense. Let's get into it.

Martin (3:19)

Obviously, right now, Bending Spoons trading 33 bucks and my base case or my fair value right now should be much higher and something around 48 bucks. But before I explain everything, I should share some context about what Bending Spoon does and how they make money.

Today, Bending Spoons is a company that's buying different companies.

Right now, the market cap is 42 billion and they have debt 5 billion. If you look at the companies, you should not only look at market cap because you are also buying the debt. Enterprise value is right now 24, 7 billion. They are making like 20, 26 guidance for the revenue are at 2.8 billion, and their adjusted operating margins are 45 percent, which is pretty good. We also have to say, they have made over 50 acquisitions since they started. It's not a newcomer because right now, it feels like this market is getting very hot. Because the idea is super compelling. Everyone wants to use AI, but only few companies know how to use AI effectively. Bending Spoons is not saying like, hey, we have got a solution for you. They are saying, we know how to use AI, but we are going to acquire you, and we are going to just transform your business. You can see some of the numbers here. They are growing pretty nicely over the last few years, and this should set up the context for the whole company. Just so you know of their current portfolio, all the companies that they own today, they have access to 5 million monthly active users across all these platforms. That's pretty insane number. There's seven, eight billion people on this planet, and they have access to 500 million monthly active users. Not all of them are paying obviously, but if you bring that operational excellence to those companies, at some point you will be able to monetize them somehow.