As Donald Trump’s potential second term approaches, his policies and market sentiment may benefit certain stocks. Investors are focusing on various sectors like energy, defence, and manufacturing, which could thrive under his administration. Some companies are likely to benefit from his inauguration due to expected policy changes.
How Trump Tarrif can benefit the American Economy?
Trump’s tariffs could benefit the American economy by protecting domestic industries and promoting local manufacturing. Recently, Trump had plans to impose tariffs on imports from Canada, Mexico, and China, which can benefit the U.S. aims to reduce foreign competition, which could create jobs. Additionally, these tariffs may generate significant federal revenue, helping fund infrastructure projects and reducing dependency on other countries.
What is fuelling the rally?
Before the election, the assassination attempt had helped his base to keep his strong polling position. The policies of the Biden administration especially on inflation and foreign aid, might have shifted voter sentiment. The support from influential figures like billionaire Elon Musk has also benefitted Trump’s campaign messaging which has strengthened his appeal across various demographics. After the election win, the influence on the policies can be in greater effect favoring Musk and companies related to Trump.
Listed below are some of the stocks Stocks that might benefit before the Trump Swear-in ceremony.
Trump Media & Technology Group Corp
Trump Media & Technology Group Corp. (TMTG) is a media and technology company founded in 2021, operating the social media platform Truth Social. Its business model focuses on promoting free speech and countering perceived censorship by larger tech companies, aiming to provide a platform for conservative voices and content. The potential partnerships with conservative entities could improve Trump Media’s user base and revenue.
With a market capitalization of Rs. $7.76 billion, the shares of Trump Media & Technology Group Corp closed at $35.79 per equity share, up 1.59 percent from its previous day’s close price of $35.23.
Tesla
Tesla, Inc. is an American multinational company focused on electric vehicles (EVs) and clean energy solutions. Its business model integrates the design, manufacture, and sale of EVs like the Model 3 and Model Y, alongside energy products such as solar panels and battery storage systems, promoting sustainable energy use globally. The Trump victory can boost Tesla as its investors anticipate regulatory easing for autonomous vehicle development and growth.
With a market capitalization of Rs. $1.45 trillion, the shares of Tesla closed at $462.25 per equity share, up 7.35 percent from its previous day’s close price of $430.60.
Palantir Technologies
Palantir Technologies Inc. is a software company specializing in big data analytics, founded in 2003. Its business model revolves around providing advanced data integration and analysis platforms, notably Palantir Gotham and Foundry, to government and commercial clients, enabling them to make data-driven decisions across various sectors including defense, healthcare, and finance. The Trump administration may favor defence spending which might benefit Palantir’s government contracts and data analytics services.
With a market capitalization of Rs. $187.58 billion, the shares of Palantir Technologies closed at $82.38 per equity share, up 2.09 percent from its previous day’s close price of $80.69.
MicroStrategy
MicroStrategy Incorporated is an American company founded in 1989, specializing in business intelligence (BI) and analytics software. Its business model focuses on providing enterprise solutions through cloud-based services and licensing, enabling organizations to analyze data for decision-making. Additionally, it has gained attention for its significant Bitcoin holdings. Trump’s policies may support Bitcoin adoption which might positively impact MicroStrategy’s cryptocurrency investments and market positioning.
With a market capitalization of Rs. $87.70 billion, the shares of MicroStrategy closed at $358.18 per equity share, up 7.81 percent from its previous day’s close price of $332.23.
Conclusion
These above stocks might benefit from the Trump election win and these company stocks have already delivered huge returns. However, the Investors need to assess the companies and make decisions with their own analysis before investing into the speculation. Analyzing companies reduces the risk of losing capital in the long run. Over the period, investors need to look into the sectors that might benefit or be affected by Trump’s actions over the period.
Written by Santhosh S
Disclaimer
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