7 Stocks I’m Buying NOW‼️December 2025

Here's a comprehensive summary of the YouTube video transcript, maintaining the original language and technical precision:

Key Concepts

• Long-Term Investing: The presenter's investment philosophy focuses on holding stocks for multiple years to achieve significant returns, rather than short-term trading.
• Valuation: The importance of Price-to-Earnings (P/E) ratios and how they impact stock performance over the long term. High P/E ratios can lead to poor returns even for fundamentally strong companies.
• Subscription-Based Software (SaaS): A business model where customers pay recurring fees for software access, common in cloud-based services.
• Direct-to-Consumer (DTC): A business strategy where companies sell products directly to end consumers, bypassing traditional retailers.
• Customer Acquisition Cost (CAC) & Lifetime Value (LTV): Implicitly discussed in the context of customer loyalty and recurring revenue.
• Word-of-Mouth Marketing: The significant impact of recommendations from friends, family, and colleagues on consumer purchasing decisions, especially for B2C companies.
• CAGR (Compound Annual Growth Rate): A metric used to project the potential annualized return of an investment over a specified period.
• Flywheel Effect: A concept where various business components reinforce each other, leading to continuous growth and improvement.

Seven Stocks for December 2025

The presenter outlines seven stocks they are currently buying, emphasizing a long-term investment horizon and focusing on future growth potential rather than past performance. The selection includes a mix of growth, value, and dividend stocks.

1. Salesforce (CRM)

• Current Status: Trading at $232 per share. The stock has experienced a 5% decline over the past five years, indicating a period of underperformance for shareholders.
• Business Model: Salesforce provides cloud-based software-as-a-service (SaaS) solutions to businesses, enabling them to manage customer relationships, sales, advertising, customer service, and online stores. It operates on a subscription basis, offering a customizable "Swiss Army knife" for business needs.
• Key Strengths:
  • Subscription Revenue: A recurring revenue model that provides stability.
  • Scalability: Caters to businesses of all sizes, from medium to large enterprises with millions of customers.
  • Customization: Businesses can tailor the platform to their specific requirements.
  • App Marketplace: A built-in ecosystem for third-party developers to create and sell add-on tools.
  • Constant Updates: Salesforce manages software updates and security, relieving businesses of this burden.
• Reason for Past Underperformance: Overvaluation in 2021, with P/E ratios reaching as high as 164. The market was valuing companies at unsustainable levels due to stimulus and low interest rates.
• Current Valuation & Future Outlook:
  • Trailing 12-month P/E: 33
  • Forward P/E: 28
  • 2-Year Forward P/E: 18
  • The presenter believes these P/E ratios are now attractive, projecting a 2x to 3x stock price increase over the next five years.
• Growth Drivers: Core business growth, price increases, new product offerings, and the recent acquisition (likely referring to Slack, though not explicitly named) and the monetization of "Agent Force" (AI capabilities).
• Projected CAGR:
  • Bull Case: 14% revenue growth, 22% net income growth, 25-26% CAGR (based on 29-34 P/E).
  • Base Case: 12% revenue growth, 20% net income growth, 18-24% CAGR (based on 27-32 P/E).
  • Bear Case: 6% revenue growth, 10% net income growth, 3-9% CAGR (based on 22-27 P/E).
• CEO Trust: High confidence in CEO Marc Benioff, citing his track record of building Salesforce into a global enterprise.

2. Amazon (AMZN)

• Current Status: Stock performance over the past five years has been 46% up, which the presenter considers "not that impressive" given the company's growth.
• Business Model: Described as a "giant connected playground" focused on customer ease and speed.
  • E-commerce: The "everything store" selling a vast array of products, both directly and through third-party sellers.
  • Fulfillment by Amazon (FBA): A service where Amazon stores, packs, and ships products for third-party sellers, enabling fast delivery.
  • Amazon Prime: A subscription service offering benefits like fast shipping and streaming.
  • Amazon Web Services (AWS): A major revenue driver providing cloud computing infrastructure to other companies, including Netflix and the CIA.
  • Advertising: Revenue generated from product advertisements on the platform.
  • Gadgets: Sales of devices like Echo and Kindle.
  • Other Businesses: Includes Whole Foods and Twitch.
• Flywheel Effect: Low prices and vast selection attract customers, which in turn attracts more sellers, further expanding selection and lowering prices.
• Reason for Past Underperformance: Historically high P/E ratios (ranging from 51 to 106) meant investors were paying a premium, limiting significant stock gains despite massive company growth.
• Current Valuation & Future Outlook:
  • Trailing 12-month P/E: 33
  • Forward P/E: 2
  • 2-Year Forward P/E: 29
  • The P/E ratio is no longer considered a problem.
• Growth Drivers: Incredible revenue growth (approaching $700 billion annually, with a projection to hit $1 trillion within five years), uptrending gross and net margins, and outstanding operating cash flow growth (projected to reach $200-$300 billion annually). Shareholder equity is also significant, nearing $400 billion.
• Projected CAGR:
  • Bull Case: 14% revenue growth, 20% net income growth, 22-26% CAGR (based on 35-40 P/E).
  • Base Case: 12% revenue growth, 18% net income growth, ~20% CAGR (based on 33-38 P/E).
  • Bear Case: 10% revenue growth, 15% net income growth, 13-17% CAGR (based on 30-35 P/E).
• Investment Thesis: Amazon offers an excellent risk-reward profile, especially considering the long-term spending by consumers and businesses on its platforms and services. It's framed as an opportunity to "give back to yourself" by investing in a company you'll use extensively.

3. The Cheesecake Factory (CAKE)

• Current Status: Trading at $47 per share. The stock has gained 24% over the past five years, not including dividends.
• Business Model: Operates a portfolio of restaurant concepts.
  • Cheesecake Factory: The flagship, high-volume, well-known brand.
  • North Italia: A higher-end Italian concept.
  • Flower Child: A mass-market, accessible concept with a focus on healthy options, with many products in the $10-$20 range and significant to-go business (50% of revenue).
  • Other Concepts: Testing and potentially scaling brands like Blanco and Culinary Dropout.
• Growth Strategy: Massive expansion of North Italia and Flower Child locations over the next 5-10 years, with projections of up to 700+ locations for Flower Child.
• Reason for Past Underperformance: The stock was difficult to value five years ago due to pandemic-related closures and subsequent operational challenges (social distancing). When it became re-profitable, P/E ratios were high (e.g., 300, then 35).
• Current Valuation & Future Outlook:
  • Trailing 12-month P/E: 14
  • Forward P/E: 13
  • 2-Year Forward P/E: 11
  • The P/E ratio is now considered very attractive and historically low for the company.
• Key Strengths:
  • Strong Customer Reviews: Phenomenal reviews for North Italia and Flower Child locations, indicating customer satisfaction and repeat business.
  • Word-of-Mouth Potential: Positive reviews are crucial for driving organic growth, especially for B2C companies.
  • Share Buybacks: The company is reducing its outstanding shares, boosting Earnings Per Share (EPS).
  • Dividend Payer: Provides income to shareholders.
• Projected CAGR:
  • Bull Case: 9% revenue growth, 11% net income growth, potential for 30%+ CAGR (assuming a re-rating to 28-33 P/E).
  • Base Case: 7% revenue growth, 9% net income growth, 27-33% CAGR (assuming a re-rating to 25-30 P/E).
  • Bear Case: 5% revenue growth, 5% net income growth, 6-14% CAGR (remaining in the 14-19 P/E range).
• Re-rating Potential: The presenter argues that accelerating revenue and net income growth, coupled with margin expansion from the growing North Italia and Flower Child segments, justifies a higher P/E ratio than the current "crap range" of 14.

4. Nike (NKE)

• Current Status: Trading at $65 per share. The stock has declined 52% over the past five years, a significant underperformance.
• Business Model: A global leader in athletic footwear and apparel, with an incredibly strong and almost unassailable brand.
• Reason for Past Underperformance:
  • Slight Valuation Issue: A minor overvaluation in the past.
  • Strategic Misstep (CEO John Donahoe): A push towards a direct-to-consumer (DTC) strategy, reducing reliance on retailers. This strategy, while potentially increasing margins on paper, weakened relationships with crucial retail partners (e.g., Foot Locker). Retailers, needing to survive, began promoting competing brands, strengthening Nike's competitors. This also alienated customers who preferred the in-store shopping experience.
• Turnaround: The return of Elliot Hill as CEO is seen as the catalyst for a significant turnaround. Hill, who was instrumental in Nike's past growth, is reversing the DTC-centric strategy and rebuilding relationships with retailers.
• Evidence of Turnaround:
  • Revenue Growth: Nike has moved from negative 12% revenue growth to positive 1% quarter-over-quarter, indicating a significant inflection point.
  • Historical Growth: Prior to the consulting CEO, Nike consistently delivered 4-12% revenue growth. Elliot Hill is expected to return the company to this steady growth trajectory.
• Future Outlook:
  • Revenue growth is expected to accelerate to 5-15% annually, which is sufficient for significant stock appreciation without needing hyper-growth rates.
  • Margins are expected to trend upwards.
  • EPS is projected to increase.
  • The company is expected to regain trust with Wall Street analysts and investors.
• Investment Thesis: The stock is currently trading at 2015 price levels, despite the turnaround already underway. This presents a compelling opportunity to buy a strong brand at a discounted valuation.

5. ELF Beauty (ELF)

• Current Status: Trading at $76 per share. The stock has performed exceptionally well over the past five years, with a 248% increase.
• Business Model: A fast-growing cosmetics and beauty company.
• Growth Drivers: Massive revenue growth over the past few years.
• Recent Weakness:
  • Tariffs: Expected to hurt margins in the short term, but the company plans to offset this with pricing, with margins projected to inflect positive again in 2026.
  • Acquisition of Rhode Beauty: The acquisition of Hailey Bieber's company has incurred costs and impacted margins in the short term.
• Long-Term Vision: The presenter is "100% convinced" ELF will become a "cosmetics giant," comparable to L'Oreal (market cap $234 billion), from its current $4.5 billion market cap.
• Acquisition Strategy: ELF has acquired "cult-like" brands such as Notorium and Rhode Beauty. Rhode Beauty, in particular, has a strong following among Gen Z and is in its early stages of expansion (selling on road.com, Amazon, and recently Sephora).
• Investment History: The presenter has been a long-term investor in ELF, having made a 953% return on an earlier investment. They are actively buying more shares at an average price of $63.
• Competitive Landscape:
  • ELF differentiates itself by understanding modern marketing and product trends for younger demographics (Millennials, Gen Z).
  • It operates in a space between small influencer brands, high-end luxury brands (Chanel, Hermes), and older, less digitally savvy mass-market brands.
  • Large conglomerates like Procter & Gamble are less likely to acquire smaller brands like Rhode Beauty, leaving ELF well-positioned to acquire and scale them.
• Future Outlook: ELF is expected to continue acquiring brands and become a dominant player in the cosmetics industry.

6. FuboTV (FUBO) & The Honest Company (HNST) - "Two Buck Chucks"

These two stocks are presented together as "two buck chucks" (low-priced stocks) with significant turnaround potential.

• FuboTV (FUBO):

  • Current Status: Trading at $2.90 per share, up 77% in the past year.
  • Key Developments:
    • Hulu Plus Live TV Acquisition: This strategic move has been completed.
    • Partnership with Disney: Disney now owns approximately 70% of the new entity formed by the Hulu Plus Live TV acquisition.
    • Path to Profitability: The company is positioning itself for sustainable profitability and revenue growth.
    • Strengthened Balance Sheet: Holds hundreds of millions of dollars in cash with minimal debt.
  • Investment Thesis: Fubo is no longer as speculative as it once was. The partnership with Disney, which owns key sports networks, is crucial. The move is seen as a strategic play to counter the growing power of YouTube TV (Google).

• The Honest Company (HNST):

  • Current Status: Trading at $2.72 per share, severely mispriced according to the presenter. The stock has been "decimated" over the past year.
  • Turnaround Under New CEO: The company was on the verge of bankruptcy but is now profitable with a strong balance sheet ($70 million cash, negligible debt).
  • Strategic Focus: The new CEO is divesting from product categories that hurt margins and expansion.
  • Investment Thesis: The stock is severely undervalued, potentially due to short-term sentiment and tax-loss harvesting. The presenter believes investors are not looking at its long-term potential.

7. Adobe (ADBE)

• Current Status: Trading at $322 per share.
• Presenter's Engagement: The presenter has extensively discussed Adobe in two recent videos and has personally invested $22,000 in the stock.
• Investment Thesis: Adobe is identified as a "growth stock" and the "number one stock" the presenter intends to buy for the remainder of 2025. (Further details are deferred to the previously mentioned videos).

Conclusion and Key Takeaways

The presenter emphasizes a long-term investment strategy, focusing on companies with strong business models, growth potential, and attractive valuations. Key themes include:

• Valuation Matters: Overpaying for even great companies (like Salesforce and Amazon historically) can lead to poor returns. Current market conditions offer opportunities to buy strong companies at more reasonable valuations.
• Business Model Strength: Companies with recurring revenue (SaaS), strong brands (Nike, Amazon), or expanding multi-concept portfolios (Cheesecake Factory) are favored.
• Leadership Trust: Confidence in experienced and proven CEOs (Marc Benioff, Elliot Hill) is a significant factor.
• Turnaround Potential: Stocks like Nike, FuboTV, and The Honest Company are highlighted for their potential to rebound from past struggles due to strategic shifts and improved fundamentals.
• Long-Term Vision: The presenter reiterates the importance of focusing on the long-term prospects of great companies, as short-term market noise is transient.

The presenter also reminds viewers that their private stock group is closing to new members on December 14th, offering access to courses, community, and exclusive content.