Three recent splits, three oversold charts, and clear levels to
watch. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
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[Morning Watchlist]
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Dear Fellow Investor,
3 SPLIT STOCKS THAT COULD SOAR IN 2026
Always keep an eye on stock splits.
A split doesn’t change a company’s intrinsic value. You still own
the same slice of the same business—just divided into more shares at
a lower price per share. But splits can matter for two practical
reasons:
*
ACCESSIBILITY AND PSYCHOLOGY. A $500 stock can feel “expensive”
even if valuation is reasonable. Split it 10:1 and suddenly it’s a
$50 stock, which tends to look more approachable to a wider set of
investors.
*
LIQUIDITY AND ATTENTION. A lower share price can increase trading
activity, improve liquidity, and expand participation—especially
among retail investors and employees purchasing through company
programs.
Historically, there’s also evidence that stocks can perform well
after split announcements. Morningstar notes that, citing Bank of
America research, stocks have outperformed following split
announcements, with average one-year returns of 25% versus 12% for the
S&P 500, and that stock splits have been picking up again after a long
lull.
Of course, not every split is bullish. Some splits occur right before
a market pullback, and a split doesn’t protect a stock from earnings
disappointments or valuation compression. The key is to treat a split
as a POTENTIAL SIGNAL OF MANAGEMENT CONFIDENCE and as a CATALYST FOR
RENEWED DEMAND, then confirm it with the chart and the fundamentals.
Here are three split stocks with setups that could be worth watching
into 2026.
-------------------------
COMPANY: NETFLIX (SYM: NFLX)
POST-SPLIT PULLBACK, AD BUSINESS MOMENTUM
In November, shares of Netflix split 10:1.
Since the split, the stock has pulled back and is now trading around
$94.50. The pullback has left the stock technically oversold, with
momentum indicators (RSI, MACD, and Williams’ %R) suggesting the
selling pressure may be stretched.
From here, we would like to see NFLX stabilize and begin reclaiming
key short-term levels. A first upside objective would be a rally back
toward $110 in the new year. That level matters because it would
represent a meaningful retracement of the post-split decline and could
shift sentiment from “fade the split” to “buy the dip.”
WHAT COULD DRIVE UPSIDE
The most important fundamental development is advertising. Netflix is
building a second growth engine beyond subscriptions, and the company
is on pace to double its ad business revenue year over year. If that
trend persists, the market may increasingly view Netflix as a hybrid
subscription-plus-ad platform with a broader path to profitability and
cash flow.
WHAT WE’RE WATCHING NEXT
*
PRICE ACTION AROUND SUPPORT: Oversold can stay oversold. We want to
see higher lows and constructive accumulation days.
*
AD REVENUE PROGRESS: If ad growth continues to surprise to the upside,
it can help justify a stronger multiple.
*
MARGIN AND CASH FLOW: The market will reward ad growth more if it
translates into improving operating leverage.
*
CONTENT CADENCE AND CHURN: Sub growth still matters; content missteps
can hit engagement.
RISK FACTORS
If ad momentum slows or competition intensifies (both in streaming
and ad-supported offerings), NFLX could remain range-bound. Also, if
the broader market de-risks early in 2026, higher-multiple media/tech
can get repriced quickly.
-------------------------
_Equiscreen_
ZENATECH (NASDAQ: ZENA): THE SMALL-CAP DRONE DISRUPTOR DELIVERING
1,225% REVENUE GROWTH AS AI, DEFENSE, AND DRONE-AS-A-SERVICE CONVERGE
INTO THE NEXT MAJOR INFRASTRUCTURE BOOM.
[[link removed]]
[DRONE] [[link removed]]
ZenaTech (NASDAQ: ZENA) is rapidly emerging as a standout name in one
of the fastest-growing technology sectors in the global economy:
AI-powered drones and autonomous services.
In Q3 2025, the company reported an eye-catching 1,225% year-over-year
revenue increase, with revenue growing sixfold over the first nine
months of the year, driven largely by its scalable Drone as a Service
(DaaS) model, which already accounts for 82% of quarterly revenue.
Rather than selling just hardware, ZENA delivers a full, end-to-end
ecosystem—combining AI-enabled drones, subscription-based services,
and enterprise software—allowing government and commercial customers
to deploy mission-critical drone solutions without upfront costs,
pilots, or regulatory friction.
With real-world deployments across defense, infrastructure,
agriculture, logistics, and public safety, ZENA is transforming drones
from niche tools into essential operational infrastructure.
What truly puts ZENA on the radar is its alignment with powerful macro
tailwinds and disciplined execution. U.S. policy shifts favoring
domestically built, NDAA-compliant drones, restrictions on Chinese
components, expanding defense engagement, and U.S.-based manufacturing
in Arizona all strengthen the company’s competitive position.
At the same time, ZENA is aggressively scaling through acquisitions,
targeting 25 DaaS locations by mid-2026, while expanding its federal
presence near Washington, D.C. As AI, automation, and defense
modernization accelerate, ZENA positioning itself as a foundational
platform in the future of autonomous operations—backed by explosive
growth, recurring revenue, and global expansion.
DISCOVER WHY ZENA IS BECOMING ONE OF THE MOST COMPELLING EMERGING
NAMES IN THE DRONE AND AI INFRASTRUCTURE ECONOMY
[[link removed]]
-------------------------
Company: O’REILLY AUTOMOTIVE (SYM: ORLY)
Split-driven accessibility, oversold reset
A few months ago, O’Reilly Automotive split 15-FOR-1.
Management framed the split as a practical move to make shares more
accessible—particularly for employees participating in the company
stock purchase program. As CEO Brad Beckham noted, the split helps
team members acquire whole shares more readily through payroll
deductions (at a 15% discount under the program).
Since the split on June 10, ORLY ran from about $90 to a high of
$108.72. It has since pulled back to around $92.25, which is creating
what looks like a “second chance” entry area for investors who
missed the initial post-split run.
Technically, ORLY also appears oversold on RSI, MACD, and Williams’
%R, suggesting the pullback may be overextended.
From here, we’d like to see ORLY rebound and initially retest $100.
WHY THIS SETUP IS INTERESTING
The auto parts business is often resilient because it’s tied to the
installed base of vehicles on the road. When consumers delay buying
new cars, they frequently maintain older vehicles longer—supporting
demand for replacement parts and routine maintenance. That can create
steadier revenue patterns than many other consumer categories.
WHAT WE’RE WATCHING NEXT
*
SUPPORT CONFIRMATION NEAR THE LOW $90S: We want to see selling
pressure fade and buyers defend the area.
*
SAME-STORE SALES AND TICKET TRENDS: These are key indicators of
underlying demand and pricing power.
*
MARGIN RESILIENCE: Distribution, labor, and logistics costs can
pressure profitability if not managed well.
*
COMPETITIVE INTENSITY: Keep an eye on pricing and promotions across
the space.
RISK FACTORS
If the economy weakens meaningfully and miles driven declines, parts
demand can soften. Additionally, if the stock market rotates away from
“steady compounders,” ORLY’s near-term upside may be more
limited.
-------------------------
_Crypto 101_
LAST CALL: THE MEMECOIN STILL AT PENNIES
[[link removed]]
Quick reminder before this opportunity slips away.
My analysts Brian and Joe have identified their #1 memecoin for
January 2026.
Plus, it could see big gains this month if the broader market bounces.
It's still trading for pennies. It has viral potential, real utility,
institutional interest building, and a capped supply with a built-in
burn mechanism.
Their track record with memecoins has been remarkable recently:
→ $PEPE: 1,570%
→ $REKT: 3,110%
→ $DogWifHat: 8,200%
→ Plus a bunch of "quick flips" gaining 300%-1,100% in days
They don't find coins like this every week. When they pound the table,
I pay attention.
And right now, the setup is perfect.
The market is oversold. January historically delivers some of crypto's
biggest rallies. And if a rally hits, memecoins could see the most
explosive gains of all.
This coin is priced in pennies right now. I don't expect that to last.
GET THE #1 MEMECOIN FOR JANUARY 2026
[[link removed]]
-------------------------
COMPANY: SERVICENOW (SYM: NOW)
POST-SPLIT DIP, CYBERSECURITY CATALYST
Shares of ServiceNow split 5:1 on December 18, a move aimed at making
shares more affordable for investors.
Now trading around $153.89, the stock is sitting on support dating
back to April and is also technically oversold on RSI, MACD, and
Williams’ %R. This is the kind of setup that can lead to a sharp
rebound if the broader market cooperates and buyers step in.
From here, we’d like to see NOW begin refilling its bearish gap,
with an initial objective around $175.
THE CATALYST TO WATCH
A key development is ServiceNow’s agreement to buy cybersecurity
startup Armis for $7.75 billion. CEO Bill McDermott said the deal will
bolster the company’s cybersecurity capabilities in the age of AI
and more than triple its market opportunity for security and risk
solutions, as noted by CNBC. He also emphasized that in an AI-driven
world—particularly with autonomous agents—enterprises need
stronger protection because intrusions can be extremely costly.
This matters because cybersecurity has become a board-level priority,
and AI expands the attack surface. If ServiceNow can integrate
security and risk solutions into its platform workflow DNA, it can
deepen customer lock-in and expand wallet share.
WHAT WE’RE WATCHING NEXT
*
EXECUTION AND INTEGRATION: Large acquisitions can create turbulence;
the market will look for clear synergy and roadmap milestones.
*
PLATFORM ATTACH RATES: The best outcome is customers adopting security
modules as part of broader workflow modernization.
*
NET RETENTION AND LARGE DEAL ACTIVITY: These are key signals of
enterprise confidence and expansion spending.
*
TECHNICAL RECLAIM OF THE GAP: Rebounding to $175 would indicate a
meaningful change in near-term sentiment.
RISK FACTORS
Enterprise software can be sensitive to IT spending cycles. If CIO
budgets tighten, deal cycles can elongate. Also, acquisitions carry
integration risk, and any signs of decelerating growth can pressure
valuation.
-------------------------
_Trading Whisperer_
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Other ETFs proved that once compliance friction drops, capital
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This one focuses on the system that never sleeps. Commerce,
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IF YOU BELIEVE THAT SPEED AND PREDICTABILITY ARE THE NEXT MOAT IN
FINANCE, THIS IS THE CLEAN WAY TO EXPRESS THAT CONVICTION.
[[link removed]]
-------------------------
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