Summary
Highlights
The presenter reflects on 2025's financial performance, noting it was a successful year, though not a 'banger' year. The public account grew from just under $3 million to over $3.7 million. Acknowledging that Meta's stock performance held back the overall portfolio, the presenter expresses long-term faith in Meta. The video then transitions to discuss five exciting stock opportunities for 2026 and future years.
Nike's success is attributed to its dominance in sports-specific products, innovation, and strategic athlete and league sponsorships. The brand effectively creates exclusive customer loyalty. Despite competition, Nike's substantial investment in athletes and sports leagues allows it to maintain its market leadership. The stock is currently seen as a 'generational discount,' trading at market cap levels of 2015-2016 and a price-to-sales ratio last seen in 2013. The new CEO, Elliot Hill, has successfully turned around the business, consistently beating revenue and earnings per share expectations. Operating income is also bottoming and trending up, and margins are stabilizing, anticipating future growth especially with a reset in the US and China markets. The stock is predicted to reach $100+ in 2026 or 2027.
Celsius has effectively marketed its energy drinks to the fitness community, a demographic previously underserved by traditional energy drink brands. They’ve also successfully tapped into the female demographic with their Alani Nu brand and recently acquired Rockstar from Pepsi, which now has an 11% ownership stake in Celsius, incentivizing its success. The company shows strong revenue, earnings per share, and free cash flow growth. The presenter provides conservative projections, with base case annual returns of 14-19% and bold case returns of 25-30%, indicating significant upside potential. Celsius faces less competitive threat than other brands due to its unique marketing and established market share.
AMD is highlighted as a compelling buy despite its recent appreciation. Its three core businesses are data center, client and gaming, and embedded. The data center segment, driven by the MI450 chip, is expected to be a major growth driver for revenue and profitability. The gaming and client segments also show strong growth. The embedded segment, though smaller now, has long-term potential. CEO Lisa Su is credited with transforming AMD from a struggling company into a $350 billion powerhouse with the potential to reach a $1 trillion market cap this decade. Projections suggest a compounded annual growth rate of 30-50% in the coming years, with the stock potentially reaching $500 to $1,000 per share.
E.L.F. Beauty, known for its affordable cosmetics, has successfully expanded its brands, including the popular ELF brand, Notorium in skincare, and the recently acquired Road (Hailey Bieber's company). The company excels in marketing across various platforms, including YouTube, Instagram, TikTok, and even Roblox, demonstrating a forward-looking approach. A recent $1 price increase on its affordable products is expected to significantly boost margins and earnings in 2026 without alienating its customer base. The potential overruling of Trump-era tariffs could further enhance profitability. Historical performance shows E.L.F.'s ability to navigate challenges like tariffs. Projections estimate annual growth rates in the 20-30% range.
Despite its 'hated' status, PayPal, which also owns Venmo, is presented as a strong company with robust financials. Key metrics like total payment volume (up 8%), operating income (up 9%), net income (up 24%), and earnings per share (up 32%) demonstrate its health. Free cash flow also saw significant year-over-year increases. PayPal's application to become a bank could provide further avenues for growth and lending. With a current 'dirt cheap' valuation (forward P/E of 11), there's little valuation downside. Even conservative projections suggest an 11-16% compounded annual growth rate, outperforming the S&P 500 in a bare-case scenario. The presenter believes a valuation upgrade is likely, turning 'PainPal' into 'FunPal' in 2026 and 2027.