As former President Donald Trump charges toward the Republican presidential nomination, a surge reminiscent of the meme-stock saga is unfolding in companies tied to the tycoon.
Stocks linked to Trump have experienced significant rallies following his victory in the Iowa primaries, with Phunware Inc. (NASDAQ:DWAC) soaring by over 400% and 180%, respectively.
Similarly, PSQ Holdings Inc. (NYSE:RUM) and mortgage giants Fannie Mae (OTCPK: FNMA) and Freddie Mac (OTCPK: FNMA) have seen gains between 30% and 45% since the year’s start.
What do these stocks have in common with Trump?
The Trump Connection: A Closer Look At The Surging Stocks
- Phunware Inc.: Phunware is a software company known for developing a mobile app for Trump’s 2020 presidential campaign. The company has seen its stock skyrocket following Trump’s recent political advancements.
- Digital World Acquisition Corp.: A special purpose acquisition company (SPAC), DWAC has been in the spotlight for its planned merger with Trump Media & Technology Group. This union, however, has faced regulatory hurdles for over two years.
- PSQ Holdings Inc.: PSQ Holdings, an online marketplace championing “freedom-loving Americans,” boasts Donald Trump Jr. as an investor. The company, which reported $3 million in revenue in the first nine months of last year, gained attention when Trump Jr. participated in its NYSE opening bell ceremony last July.
- Rumble Inc.: Rumble is a video-sharing platform offering unrestricted content sharing, appealing particularly to conservative voices who have been banned on other platforms. Rumble also formed a technology and cloud-services partnership with Truth Social, Trump’s social media venture.
- Fannie Mae and Freddie Mac: Both mortgage firms are anticipated to benefit under a second Trump presidency. The two have been under government conservatorship since the 2008 financial crisis, and Trump has shown interest in privatizing these firms. Their stocks, currently trading over-the-counter at around $1 each, have garnered attention with the prospect of Trump’s return to office. Keefe, Bruyette & Woods analyst Bose George recently upgraded Fannie Mae and Freddie Mac from Underperform to Market Perform and said he sees the possibility of a close election as a reason for the near-term climb in the value of the stocks.
Chart: Price Performance Of Trump-Tied Stocks In 2024
Read now: 2 Stocks Surging on Donald Trump’s Presidential Bid
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