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| The Comeback Trade That Still Moves Like a Meme |
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| Some stocks do not drift, they snap.
When a turnaround name keeps printing better fundamentals, every dip turns into a debate and every rip turns into a scramble.
This week's list leans into that energy with a mix of momentum, durable growth, and one cash-flow cleanup job. | |
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| | | | | | DraftKings (DKNG)
Catalyst: NFL playoffs and a cleaner profitability story
DraftKings is not just a sports app anymore, it is a recurring habit for a growing chunk of fans. The market's mood has shifted from pure growth to a simpler question: can this business keep expanding while turning into a cash generator, not a cash bonfire. The bull case is that customer acquisition has matured, hold rates are stable, and product improvements keep bettors engaged without spending like it is 2021.
Playoff season matters because it is a live stress test for engagement, promos, and operational discipline. If DraftKings shows it can pull handle after handle without juicing the numbers with reckless incentives, investors get more comfortable paying for the long runway.
What to watch: Net revenue growth, promo intensity, and any commentary on 2026 profitability targets. If management sounds confident without sounding salesy, the stock usually responds. |
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| | Hidden Winners Rising (Sponsored) | | | As 2025 winds down, the market is changing course.
Tech giants are cooling off, and the next big opportunities are emerging in
small-cap stocks.
Institutional investors are already starting to take notice, which means these opportunities won't last long.
The end-of-year rotation is underway, and history shows that early movers can capture some of the strongest gains.
Our End-of-Year Market Report outlines the small-cap stocks set for a breakout. Act fast before these opportunities tighten.
[Get the Free Report Now] | (By clicking the link above, you agree to receive emails from MarketCrux. You can opt out at any time. – Privacy Policy) |
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| | | Duolingo (DUOL)
Catalyst: Subscription flywheel and a long runway in education
Duolingo has turned learning into a daily streak game, and that is the secret sauce. The product is sticky because it is habit-driven, globally scalable, and easy to expand into adjacent categories. The stock tends to move when the company proves it can keep converting free users into paid subscribers while growing without blowing up costs.
This is one of those names where small KPI changes matter. A modest lift in paid conversion or retention can ripple through the model and make the long-term math look better fast.
What to watch: Subscriber adds, ARPU trends, and margin progress. If growth stays steady while profitability improves, the market stays willing to pay up. |
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| | | Celsius (CELH)
Catalyst: Distribution momentum and a narrative reset
Celsius is living the classic arc: hot story, crowded trade, then the reality check. That is why it can get interesting again. The setup now is whether distribution keeps expanding, shelf space stays durable, and brand momentum holds up as competition gets louder and promo games get more aggressive.
The bull case is simple. If velocity stays strong, the brand keeps earning its spot in the fridge. The bear case is also simple. If growth slows, valuation can feel like a trapdoor.
What to watch: Retail scan trends, distribution commentary, and guidance around growth and margins. If the company shows it can keep taking share without sacrificing profitability, sentiment can flip quickly. |
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| | | Warner Bros. Discovery (WBD)
Catalyst: Debt paydown and the streaming story stabilizing
This is not a glamour stock, it is a fix-it project. That is also the opportunity. When a company is heavily discounted for uncertainty, boring wins can matter a lot. Debt down, free cash flow up, and fewer strategic pivots that confuse everyone.
The market has punished mixed messaging here, so the bar is not perfection. It is credibility and consistency. If management keeps paying down debt and the streaming trajectory looks less chaotic, the multiple can improve even without a blockbuster hit parade.
What to watch: Free cash flow, leverage reduction cadence, and streaming profitability trajectory. If cash generation stays reliable and leverage keeps dropping, the stock can rerate on boring progress. |
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| | | Carvana (CVNA)
Catalyst: Demand resilience and execution discipline in used autos
This one still trades like it drank three energy drinks and stole your car keys. When it is working, the model looks powerful: scale, logistics, financing, and inventory management all feeding a flywheel. When it is not, it is a reminder that leverage and operational complexity bite hard.
The current setup is about whether the company can sustain profitability and volume growth without slipping back into bad habits. If it keeps showing discipline on unit economics, investors will keep treating pullbacks as entries. If fundamentals wobble, the unwind can be quick and ugly.
What to watch: GPU per unit, inventory health, and credit performance signals. If unit economics stay strong while volume grows, the stock can keep surprising. |
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| | Poll: Which feels more valuable than a raise? | |
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| | Final Word
This week is about setups that can actually move. The rebound trade is still volatile, but the fundamentals have been improving enough to keep the bulls loud. DraftKings has a seasonal spotlight and a profitability narrative to defend. Duolingo is the steady compounder if subscriptions keep climbing. Celsius is the brand story that needs proof on shelves, not hype on social. WBD is the cash-flow cleanup job where boring progress can drive outsized upside. Pick your lane, size positions with respect, and let the numbers decide who earns a bigger spot next week.That's all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia
Elite Trade Club |
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