Must-Watch Stocks as Trump Takes Office

As President-elect Donald Trump prepares to take office on January 20, 2025, investors are keenly observing certain stocks that may be influenced by his administration’s policies. Here are some must-watch stocks:

Tesla (TSLA)

The incoming Trump administration’s policies on electric vehicles (EVs) are drawing scrutiny, particularly regarding their potential impact on companies like Tesla (TSLA). Trump has criticized federal spending on EVs, labeling it part of the “Green New scam,” and suggested that the industry’s focus on EVs could facilitate China’s dominance in the global auto sector.

Despite this, Tesla’s stock has experienced notable gains, closing at $426.50, up 3.06% from the previous close. This uptick comes amid concerns that the new administration might eliminate the $7,500 federal tax credit for electric vehicles, potentially increasing costs for consumers and affecting Tesla’s sales. However, investors remain optimistic, believing that Tesla’s established market presence and scale could provide a competitive advantage even without federal subsidies. 

Additionally, Tesla CEO Elon Musk‘s involvement with the new administration, including his role in the Department of Government Efficiency, suggests a potential for favorable policies towards self-driving technology, aligning with Tesla’s plans to launch a robotaxi service in late 2025. 

Currently, analysts have given Tesla stock a Hold rating, however this may change depending on how Trump’s administration navigate U.S EV policies.

Marathon Digital Holdings (MARA) and MicroStrategy (MSTR)

Cryptocurrency-related stocks have surged following Trump’s election victory, with Bitcoin surpassing $104,000. This rally is largely attributed to President-elect Donald Trump’s pro-crypto stance, which has bolstered investor confidence in the digital asset market. During his campaign, Trump pledged to transform the U.S. into the “crypto capital of the planet,” a commitment that has resonated with both individual and institutional investors, according to The Times.

Analysts suggest that Trump’s anticipated policies, including the establishment of a national Bitcoin reserve and the appointment of a “crypto czar,” have created a favorable environment for cryptocurrencies. These initiatives are expected to reduce regulatory hurdles and encourage broader adoption of digital assets.

As a result, companies with significant Bitcoin holdings or operations, such as MicroStrategy and Marathon Digital Holdings (MARA), have experienced notable stock price increases. Marathon Digital Holdings saw its stock price rise to $19.91, an 8.85% increase, while MicroStrategy’s (MSTR) stock climbed to $396.50, up 8.11%. These gains reflect optimism about a crypto-friendly administration, especially with the appointment of Paul Atkins, a former SEC commissioner and digital assets expert, to lead the SEC.

Looking at the TipRanks Stocks Comparison tool, analysts are bullish on both MSTR and MARA.

Trump Media & Technology Group (DJT)

Trump Media & Technology Group (DJT), the parent company of Truth Social, is currently trading at $40.03, reflecting a slight decrease of 2.37% in the past 24 hours. Despite this dip, TMTG’s close association with the incoming administration positions it favorably for future policy support, particularly in the tech and media sectors.

President-elect Donald Trump’s administration is anticipated to implement policies that could benefit platforms like Truth Social. For instance, Trump has expressed intentions to reform Section 230 and introduce a Digital Bill of Rights, aiming to address perceived biases in content moderation by major tech companies. Such measures could create a more favorable operating environment for TMTG, potentially enhancing its market position.

However, it’s important to note that DJT stock has exhibited high volatility, often influenced more by political dynamics than fundamental business metrics. The company’s revenue streams remain limited, and it has yet to achieve profitability. 

Therefore, while the political climate may offer certain advantages, investors should remain cautious and consider the inherent risks associated with such speculative investments.

Liquefied Natural Gas (LNG) Stocks

The administration’s plans to lift restrictions on liquefied natural gas (LNG) exports are poised to significantly impact the U.S. energy sector. This policy shift aims to bolster the economy by an estimated $1.3 trillion and double LNG export capacity over the next five years. Major energy corporations stand to benefit from these changes.

Cheniere Energy (LNG)

Cheniere Energy (LNG), currently trading at $252.76, is a leading producer and exporter of LNG in the U.S. The company’s Sabine Pass and Corpus Christi facilities are among the largest in the nation, positioning Cheniere to capitalize on increased export opportunities.

Shell (SHEL)

Shell (SHEL), with a stock price of $66.72, has substantial LNG operations globally. The company is involved in various LNG projects, including the Prelude floating LNG facility in Australia. Shell’s extensive experience and infrastructure in the LNG market make it well-suited to benefit from expanded U.S. export policies.

Chevron (CVX)

Chevron (CVX), trading at $161.47, is a significant player in the LNG sector. The company operates the Gorgon Project in Australia, one of the world’s largest natural gas developments. Chevron’s global LNG portfolio positions it advantageously to leverage increased U.S. LNG exports.

While these companies are set to gain from policy changes, analysts anticipate potential challenges. Environmental groups may pose regulatory and litigation obstacles, despite promises to roll back regulations. The expansion of LNG exports aligns with the administration’s broader energy strategy to achieve energy independence and strengthen geopolitical alliances through energy trade.

Investors can compare LNG stocks using TipRanks’ Stocks Comparison tool. Analysts deem all 3 stocks a Strong Buy.

Key Takeaway

President Trump’s policy shifts are reshaping the market, offering both opportunities and challenges for investors. From Tesla’s potential gains in autonomous technology to cryptocurrency stocks riding a pro-Bitcoin wave, each sector offers unique prospects. Trump Media & Technology Group may benefit from regulatory changes in tech, while LNG companies like Cheniere, Shell, and Chevron stand poised to capitalize on increased export opportunities. However, investors should weigh optimism against potential risks, as these developments hinge on policy execution and market reactions.