Donald Trump launched his “$ Trump Meme Coin just before his inauguration in January. – Jim Watson/AFP via Getty Images
President Donald Trump dominates the political scene in Washington, DC and the news and developments throughout the country and the rest of the world. Probably not since Franklin Roosevelt had an incoming president in 1933, such an impact made so quickly.
But these “Trump Times” offer difficult times for Maga investors so far.
Since the inauguration of Trump in January, shares in the president’s vehicle, Trump Media & Technology Group DJT, have plummeted. The $ Trump Trumpusd and $ Melania Melaniausd cryptocurrencies have collapsed. And Elon Musk currently has the costs of his close association with the Trump administration and Maga Nation: Tesla’s stock price TSLA has almost halved since the inauguration, which Musk cost, the CEO of the company, almost $ 100 billion.
Au.
“Buy the rumor, sale on the news”, as they say on Wall Street, and when it comes to Trump Financial Bets, that has absolutely been the profitable trade – so far in any case.
Take Trump Media & Technology Group, who owns the President’s Truth Social, a rival of Musk’s X. Donald Trump uses the platform to make announcements and comments, but that does not help from external investors. The share price has been halved since the inauguration, from $ 40 to $ 20. If you have purchased the shares on election day, you have now lost more than 40% of your money. You are actually in red if you have bought the stock at almost every point in the past year.
‘DJT’ became public by an inverted merger: In fact, Trump has combined his truth of social operation with a paper ‘Shell’ company that was already on the stock market. If you bought this share after Trump won the Iowa -Caucuses in January last year, when the price reached $ 50, or when the merger completed in the spring, when it reached $ 66, you are immediately lucky.
The smart move was to buy the shares before Trump won the Caucuses from Iowa, when the stock price was $ 17, and to sell it immediately afterwards for a quick profit of 200%. Your correspondent (who is not allowed to do speculative stock market betting with his own money) has kicked himself because he did not write that story in advance.
It would also have been a smart move to buy the share during a silence in March, when it was as low as $ 36, and then to sell during the frenzy at the end of the month when the merger was completed and the ticker changed.
There was also an opportunity to make money when buying the share after the presidential debate in September, when Democratic nominated Kamala Harris was at the forefront of the polls and the Trump campaign seemed to be in the Goldrums.
But in any case you wanted to cash in when the good news struck – Trump won the Caucuses from Iowa, won the elections, are inaugurated.
You even had to be a bat to earn a dollar from the cryptocurrencies, or meme coins, launched by the president and the First Lady. Both were launched during the weekend before Monday, January 20, inauguration. According to price data that is monitored by Cryptocurrency website coinmarketcap.com, in both cases you had to buy the coins and then sell it again within a few hours to make a money. By the time Trump took the oath, they were already in free fall.
Oops.
As far as Tesla is concerned: the collapse of the stock price has wiped out almost $ 600 billion from the market value of the company since 20 January.
The stock is now back to where it was just before the elections – and where it was when Trump left the office in January 2021, in that regard.
The Tesla shares flourished after the presidential election last fall. You have to assume that a lot of buying came from Maga Nation. What else had changed? Elon Musk was one of the then candidate Trump’s greatest cheerleaders and was already tapped to become a member of the administration to run the budget -cutting “Doge” team.
The share went from $ 213 before the elections to $ 480 mid -December.
It should have been painfully clear that Musk’s Washington, DC, Adventure brought huge business risks to the company. In a Venn diagram there is very little overlap between “people who buy electric vehicles such as Teslas” and “people who vote for Donald Trump.” How many things can Musk do at the same time?
Tesla is now threatening to become the button from the left. The beer brand cratered two years ago when a marketing connection with Transgender Tiktok personality Dylan Mulvaney encouraged a boycott of conservative beer drinkers.
It turns out that “people who buy Budweiser -Bear” and “people who are enthusiastic followers of transgender -influencers on TIKTOK” is another VNN diagram with very little overlap.
Perhaps Musk can build the Tesla brand under Maga Nation by entering Teslas in Nascar varieties, or cyber trucks in a demolition derby. Recent news about the Cybertruck you can ask how that would work. But I bet that many people would watch.
Tesla is particularly vulnerable because it is such a “growth” supply. In contrast to so-called value shares, such as Bud Light-parent Anheuser-Busch Inbev Bud, the stock market appreciation of Tesla overwhelmingly depends on the hope of the future instead of profit in the here and now.
The shares of Tesla still sells annual income for an eye-watery 80 times, even after the fall of the share price.
Anheuser-Busch shares, on the other hand, sell annual income for only 16 times.
“Elon Musk,” a friend of Wall Street jokes, “is now the Rudy Giuliani of electric vehicles.”
Former mayor of New York Giuliani, once a national hero, is one of those who count the costs of his close association with Donald Trump.
It should be noted that not everyone has lost from these companies. Trump and his family members have a cost -based cost of effective zero in his shares and cryptocurrencies, which means that every nickel is of remaining value profit. Trump’s 115 million ‘DJT’ shares are still worth around $ 2.3 billion, even against today’s share price. His 80% share of all outstanding $ Trump “coins” is valued at around $ 1.8 billion, according to the data from Coinmarketcap. The residual value of all $ Melania coins is around $ 380 million.
In the meantime, if you are a fan of ironies, Anheuser-Busch Inbev, who collapsed after Maga Fan Kid Rock launched the boycott two years ago, is now Booming. It has risen 30% since January 20.
