9 Stocks That Could Make You Rich
In a Nutshell
The video analyzes nine stocks with potential for significant returns, featuring established companies like IMAX, Reddit, Mercado Libre, Adobe, Nike, Rollins, and Copart alongside fast-growing names like Nbias Group and Cava. Key investment themes include IMAX's potential surge pricing model, Adobe and Nike as deep-value turnaround plays, and Nbias Group's momentum-driven infrastructure expansion, while noting the ongoing Paramount-Warner Brothers Discovery merger drama with California.
These notes were generated by AI and may contain inaccuracies.
The Joseph Carlson Show covers nine stocks that could make investors wealthy. None of these stocks are in the portfolio, so there will be no discussion of Meta, Uber, Door Dash, Texas Roadhouse, or Costco. All nine companies are brand new to the analysis.
There's a major news item regarding David Ellison, owner of Paramount, who is attempting to buy Warner Brothers Discovery. California is suing Ellison, prompting him to threaten pulling Paramount out of California, which could result in Hollywood losing Paramount.
IMAX is the first stock highlighted. The latest movie released was The Odyssey, which is projected to do over a billion dollars in sales and was shot 100% using IMAX cameras. IMAX is compared to S&P Global and Moody's in that it sets a standard for how movies should be made.
Christopher Nolan contacted IMAX years ago to use IMAX for The Odyssey, securing release time and exclusivity, which explains why The Odyssey had IMAX while the new Spider-Man did not. IMAX movies require filming in a specific style with huge film cameras that capture detail digital cannot replicate.
The misconception about IMAX is that it simply means a tall or square screen. In reality, IMAX cameras collect more detail with more pixels and resolution, capturing more data to display on larger screens while maintaining detail. IMAX also has specific audio standards and audits theaters globally to ensure consistent quality.
IMAX stock is up 40% this year and 100% over the past year. Current multiples show a 27 forward PE ratio with a 4.5% free cash flow yield, or normalized 3.5% free cash flow yield after accounting for stock-based compensation.
The key insight is that IMAX is being priced on current financials as if organic growth will continue at historical rates. However, there's potential for IMAX to be treated more like a concert with surge pricing and demand-based pricing. Currently, tickets sell for $15-20, but secondary markets show first-week IMAX 70mm tickets for Nolan's The Odyssey selling for $300-$1,000, indicating significant demand.
IMAX cannot set ticket prices itself since it doesn't own theaters, but companies like AMC may eventually implement surge pricing. Upcoming releases include Dune 3, with movies already lined up for 2027, 2028, and 2029.
Reddit revenue was only $93 million in 2020 when it went public. Revenue has since grown dramatically to $500 million in trailing 12-month periods, nearly doubling year-over-year initially. Reddit monetizes AI companies including Google, ChatGPT, OpenAI, and Claude by licensing human conversation data for training purposes.
The majority of revenue comes from organic advertising that's highly granular, targeting specific subreddits with relevant products. A running subreddit advertises running shoes, while a battle station subreddit advertises mechanical keyboards and standing desks. Reddit has a $30 billion market cap with significant growth rates.
Mercado Libre is the best company in South America and is similar to Amazon but focused on financial services rather than cloud hosting. Fintech monthly active users grew from 49 million in 2024 to 88 million currently, with significant credit card growth.
The total addressable market extends beyond Latin American retail to include any money movement including spending, saving, borrowing, or transferring. The company is sacrificing short-term profitability for growth, with the stock price relatively flat over five years despite substantial revenue growth.
Four companies are identified as turnaround plays: Adobe, Nike, Rollins, and Copart. A turnaround play involves companies currently performing poorly with significantly depressed stock prices that may recover.
Adobe is down from $660 to $255 per share, representing a 60-70% decline. Nike peaked around $180 per share. Rollins was trading at $65 per share. Copart is also down significantly.
Adobe's revenue shows 13% year-over-year growth with consistent quarterly increases over the past 10 years. The company is pivoting to become the central platform for AI creativity and productivity across web, mobile, and conversational surfaces, trading off lower future revenue growth for faster user acquisition on free platforms.
Adobe trades below a 10 forward PE ratio with a 10.4% free cash flow yield, pricing in anticipated capital destruction and slower growth.
Nike's revenue, EBIT, net income, and free cash flow are all in decline. The company trades at a 24 forward PE ratio with a 3.6% free cash flow yield. Current declines are self-induced by management through inventory reduction, moving away from direct-to-consumer sales, and discounting old product.
If Nike's brand can sustain premium pricing and margins recover after these changes, the stock may be deeply undervalued.
Rollins is a pest control company that traded at a 57 trailing PE ratio and 2% free cash flow yield. After missing earnings expectations, it now trades at a 33 PE ratio and 3.5% free cash flow yield. Pest control is a reliable business as customers view it as a must-have expense for homeowners and property owners.
Copart operates an online auction platform for totaled vehicles. Insurance companies send totaled vehicles to Copart, which handles storage, listing, and auctioning to dismantlers, rebuilders, used car buyers, and exporters. Copart charges service fees without owning inventory.
The company was expected to grow 13-15% annually but revenue growth stopped, showing less than 2% growth in the past year. Approximately 70% of the revenue deceleration is attributed to tough hurricane-related comps, with only 30% being organic. Insurance costs have also increased, leading to more liability-only policies.
Nbias Group
Nbias Group is one of the most popular stocks online, with widespread investor interest except for Michael Bur. Michael Bur listed that he was short this company at around $210 per share, and the stock being up 23% today is not helping his short position. Bur is already deeply in the red on this position, though he may hold it long enough for the price to decline.
Looking at the company's organic growth over the past 2 years reveals strong revenue performance. Trailing 12-month quarterly revenue was $und00 million in Q4 of 2024, rising to 877 million in Q1 of 2026. This revenue growth is driving the stock's rapid movement. The stock is up 176% and can surge 20% or more in a single day.
These hyped, momentum-driven stocks require caution due to their volatility. Investors should understand that 10-20% price swings are common when holding these companies. A massive group of investors constantly follows Nbias Group, and the tremendous momentum can carry the stock further and longer than many believe.
Beyond the technicals and hype, Nbias Group has strong fundamentals. The company has access to Nvidia GPUs, power, and financing. Customers prepay for capacity, and Nbias Group reinvests all incoming money into building additional capacity. Their scale produces at 40-50% margins. Infrastructure continues to grow along with IBIDA and earnings. As long as revenue growth continues at the current pace, momentum is likely to persist.
Cava
Cava sells Chipotle-like food with Mediterranean and Greek influences, served in bowls. The food is healthy and Cava is a well-liked company. Many people appreciate these bowls. Cava remains in the early stages of a restaurant with a proven concept, currently operating 476 locations with potential to expand to multiple thousands of locations. This represents enormous growth potential ahead.
The company has demonstrated that people enjoy this type of healthy, easy-to-justify food. Many customers develop a pattern of eating there at least once a week, creating loyalty and brand recognition. Cava offers a meal that is both healthy and well-liked by most people.
Investors have long sought the next Chipotle - a company that would grow rapidly and expand across America with thousands of locations. Cava's stock rocketed from $40 to $140 between 2023 and 2024 due to the growth story and potential, though valuation metrics were extremely high at the time. The stock has since settled to around $60-$70 per share.
Revenue is growing consistently with 26% year-over-year growth, which is very fast. Restaurant locations are expanding by about 20% year-over-year across the United States. With the long runway of growth, proven track record, great unit economics, and the stock having declined around 50%, this appears worth considering.
Paramount and Warner Brothers Discovery Merger Situation
David Ellison stated he will pull Paramount out of California starting October 1st if the state refuses to negotiate a settlement in the antitrust suit. Ellison told Paramount senior executives last week that he will relocate operations outside California if the deal does not close by September 30th. Sources confirm the final hurdle to closing the Paramount and Warner Brothers Discovery merger is the antitrust case. If Rob Bont, the attorney general for California, does not agree to negotiate a settlement by then, the company will begin exiting California starting October 1st. Ellison informed the team that the Paramount and Skyboard board has approved this move.
Being the son of Larry Ellison, one of the richest people on Earth, David Ellison was able to buy Paramount, a major studio, and has enough money and influence to potentially buy Warner Brothers Discovery with Paramount. Ellison appears to be the most privileged individual in this situation, unlikely to be deterred by an attorney general in California. The situation pits an unstoppable force against an immovable object.
Rob Bont responded that in the span of weeks, Paramount agreed to halt the merger until the court decision or until June 2027, asked for a November trial, and is now attempting to blackmail the state into letting an illegal deal through. Bont stated that Paramount has lost the plot and continues to lose in court.
David Ellison is going to any ends to make this deal succeed, largely using his father's money. California is suing the company, claiming the merger is illegal despite it passing every other regulatory body, including European regulations and the Department of Justice. Everyone has approved the deal except for California and 12 other states. When Ellison responds that if California does not like the company and sues them, they will move away, California reacts with indignation at the threat to relocate operations from a state currently suing the business. However, Ellison naturally wants to move from a state that wants his company to fail and a merger to fail that he desperately needs to survive.
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