Trade Alert – January 23, 2026

COF – We have been watching Capital One for some time now. This past week or so has seen a lot of news around the company that has affected the share price negatively. First, President Trump called for a 10% cap on interest rates for credit cards. That knocked the stock down by about 5%. This idea sounds great to the public, but in reality would hurt the very people it purports to help. Credit cards would simply not be extended to people with lower credit scores. So I view this as an issue with very little chance of coming to fruition. Second, Capital One released their earnings yesterday for Q4 and results came in short of expectations. Much of the miss was caused by the closing of the Discover purchase, which is now closed. Furthermore, they announced the purchase of a company called Brex for $5.15B. Again, in the long run, this is a positive as it brings them into the B2B game and the ability to compete with the likes of American Express. They now own the payment processing through the Discover acquisition, the B2B through Brex, and the budding physical branch business. All of this compliments the existing credit card business. The aptly named CEO, Richard Fairbank is the founder of the company, and I love his entrepreneurial spirit.
with all of this said, we will open a position in COF.