Please ensure Javascript is enabled for purposes of website accessibility

2 Stocks We're Watching This Week

By Motley Fool Staff - Oct 13, 2019 at 8:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Here are two stocks that could have an interesting week or so ahead of them.

Each week, Industry Focus: Financials host Jason Moser and contributor Matt Frankel, CFP, each discuss one of the stocks they're keeping an eye on. Jason has PayPal (PYPL -1.28%) toward the top of his watch list, while on a related note, Matt is keeping an eye on Facebook (META -1.22%) after PayPal decided to bail out of Facebook's Libra cryptocurrency initiative.

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.

This video was recorded on Oct. 7, 2019.

Jason Moser: OK, Matt, we're going to wrap the week up as always here with One to Watch. What is your One to Watch for our listeners this week?

Matt Frankel: Continuing our discussion about Libra, I'm keeping an eye on Facebook. I want to see how they react to PayPal jumping out, if any. I want to see if Visa and Mastercard do end up jumping out. And I think if you see a bunch more jumping out, they're going to toss the project out, or at least put the brakes on it. I think if they put the brakes on the project, Facebook's stock goes up. I think if you see all these partners jumping out and Facebook decides to push on with it, the stock might take a hit because of it.

Moser: Yeah, I could see that. You almost look at it and think, "Man, guys, take a hint. Don't waste any more time or money on it." I guess we'll see. I'm going to go in tandem with you here. I'm not looking at Facebook, but I'm looking at PayPal, ticker PYPL. This is a bit beyond the Libra news. Other than the Libra news, some of you may have seen last week, maybe the week before, news that PayPal, via a 70% interest, purchased in Chinese payments company GoPay. Now gives PayPal license to provide online payment services in China. If you are wondering if that's a big deal, we're talking about a market opportunity that by 2023 is projected to be around $96.73 trillion. Listen, that's a big market opportunity. I don't know that necessarily all applies to PayPal. But ultimately, we're talking about money that flows through these networks. That's PayPal's opportunity. If you're talking about a country the size of China, you're talking about a lot of money flowing through a big network. PayPal getting entry into that market, that was the hardest part. Now it's going to be just about building out products and services for more people.

You may wonder, why PayPal? Perhaps they're just seen as the best option in a tech-driven payments world. I'm not sure. We obviously like it for a lot of reasons. It's a company that was built on the technology as opposed to one that's pivoting toward technology. And then, you can't forget about the big cross-border opportunity. We've seen MasterCard and Visa both investing heavily in that opportunity. I think this is going to be a great long-term opportunity for PayPal. I was excited to see that news. How about you, Matt?

Frankel: Yeah, definitely. I am a big fan of PayPal, as you know. That's another one that I'm thinking about buying. When we were talking about recent stocks we bought, I haven't pulled the trigger yet, but that's one that I'm thinking about finally getting back into.

Moser: Alright, we'll let you shut up about it so you can at least take advantage of it if the opportunity arises.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jason Moser owns shares of Mastercard, PayPal Holdings, and Visa. Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook, Mastercard, PayPal Holdings, and Visa. The Motley Fool has the following options: short October 2019 $97 calls on PayPal Holdings. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Meta Platforms, Inc. Stock Quote
Meta Platforms, Inc.
$172.72 (-1.22%) $-2.12
PayPal Holdings, Inc. Stock Quote
PayPal Holdings, Inc.
$98.15 (-1.28%) $-1.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.