Summary
Highlights
Last Minute 2025 Buys: TSLZ (Tesla Hedge)00:00:00
With nine trading days left in 2025, Jeremy is making his final big buys, likely his last for the year. His first purchase is TSLZ, a 2x leveraged ETF against Tesla stock, bought at $10.35. He uses it as a portfolio hedge, believing a market downturn would significantly impact Tesla, making TSLZ profitable. He acknowledges Tesla's excellent vehicles but notes their growth challenges and the overhyped nature of robotaxi opportunities, which he expects to generate profit much later.
Adobe (ADB): A Misunderstood Money Maker00:04:10
Jeremy bought 25 shares of Adobe at $347.66. He considers it a straightforward buy due to its strong business model and a low 2-year forward P/E of 14 for a company with double-digit growth. He projects 10% average revenue growth and 12% net income growth, leading to a 20% CAGR, implying Adobe is a very misunderstood stock.
American Express (AXP): Best Business Model00:05:42
He purchased 20 shares of American Express at $380, highlighting its subscription-based business model and strong market position. He anticipates 8-10% average annual revenue growth and 12-15% net income growth, translating to a 16-26% CAGR. He sees American Express as a very difficult company to disrupt and one that provides consistent long-term returns.
Salesforce (CRM): Undervalued with Strong Growth00:08:12
Jeremy added Salesforce (CRM) shares at $255.12, noting it's another misunderstood stock. He points to a 2-year forward P/E of 20, double-digit revenue growth, and strong expected earnings per share growth. His projections indicate 12% average revenue growth and 20% net income growth, resulting in a 13-18% CAGR, positioning it as a significant outperformer to the S&P 500.
AMD: An Opportunistic Buy00:10:43
He bought 20 shares of AMD at $208.46, despite already having a substantial position. He couldn't resist buying more after a recent dip, citing CEO Lisa Su's conservative projections of 35% annual revenue growth for the next 3-5 years, which he believes could be even higher. His base case projects 35% revenue growth and 45% net income growth, leading to a 34-40% CAGR and a potential stock price of $600-$800 by 2029.
Celsius Holdings (CH): Dominating Energy Drinks00:13:34
Jeremy acquired Celsius Holdings shares, liking it as a high-confidence buy even in the $40s (after previously buying in the $20s). He highlights the competitive energy drink market, where Celsius, alongside Red Bull and Monster, is a major player with popular brands like Celsius, Alani, and Rockstar (acquired from Pepsi). He believes Celsius is well-positioned for significant growth and market dominance in the coming years due to strong distribution and market shifts.
Cheesecake Factory (CAKE): A Top Restaurant Opportunity00:15:00
He continues to buy Cheesecake Factory stock, calling it one of the most attractive opportunities in the restaurant industry. He encourages listening to their recent Barclays investor conference for insights into the company's brands like Cheesecake Factory, North Italia, and Flower Child.
Meta: Continuing to Invest in a Long-Term Winner00:15:58
Jeremy purchased Meta stock again, despite holding a significant position with a much lower cost basis. He stresses that current stock price is irrelevant if projections show strong future returns. His Meta projections anticipate 15% (potentially 17-18%) average revenue growth and 18% net income growth, leading to a stock price between $1,300 and $1,500 by 2029, a more than double-up from current levels.
AI & Bitcoin: Growth Trajectories and Market Doubts00:19:35
Tom Lee discusses investor skepticism around AI and Bitcoin. He notes high visibility for AI but questions its valuation. For crypto, he sees a strong fundamental story with favorable regulations and Wall Street interest, but also pricing uncertainties. Both segments face investor questions about the sustainability of their growth rates and whether peak bullishness has passed. Jeremy expresses disinterest in Bitcoin, emphasizing his preference for strong business models over speculative assets.
AI Business Models and Valuations00:23:01
The discussion continues on the evolution of AI business models, with a prediction that the market will be huge by enabling existing workers. The conversation evaluates whether current valuations reflect the changing business models (from asset-light to asset-heavy) and potential rerate for AI stocks like Nvidia. Jeremy acknowledges the potential for Nvidia's margins to plummet in future years due to increased competition, a risk not present in more stable companies like Costco or Walmart, justifying their different valuations.