Summary
Highlights
The speaker's October stock pick, PayPal, experienced a significant surge following positive news. The stock, which had been 'basing' for three years, saw almost a 100% gain in options for those who invested the previous day. The speaker emphasizes that this is just the beginning of a potential long-term upswing for PayPal, advising against immediate selling despite potential pullbacks.
POET, a small-cap stock previously recommended by the speaker, also saw a substantial increase. After an initial pullback, the speaker advised buying at $5.30, leading to a significant rally towards a $9 target. The speaker highlights the importance of stop-losses and reassessing trades, even after being stopped out, as demonstrated with POET.
The speaker welcomes viewers to Wall Street, encouraging them to participate in the investor economy, especially in the era of AI. He stresses the importance of staying informed and notes that he consistently provides big tech and small-cap stock picks, which have been successful.
The major news for PayPal is the unveiling of PayPal Ads Manager, enabling small businesses to generate new revenue streams through retail media. This AI-driven move is seen as crucial for PayPal to differentiate itself in a competitive market, potentially leading to significant growth, especially if they execute well and show strong earnings.
Analyzing PayPal's chart, the speaker points out a stop-loss at $66. He highlights a confirmed buy signal on the MACD (Moving Average Convergence Divergence), indicating a potential continued upward trend. The speaker anticipates a slight price pullback (a 'flag') which he views as a buying opportunity, emphasizing disciplined position sizing and gradual investment.
Reviewing POET's chart, the speaker reinforces his bullish stance and the stock's adherence to an ascending channel with a $9 target. He suggests that if POET can reclaim and consolidate above $9, it could potentially reach as high as $20. He advises letting runners run after initial targets are met and raising stop losses.
The speaker concludes by noting the market's current strength, with September and October yielding positive results, and an unfazed response to bad news. He also mentions Amazon as another stock he's watching, having 'nibbled' on it and planning to buy more if it continues to climb.