Stocks To Watch | Meet the 'MAGA 7': The Market's New Dominators Post-Trump Win

AppLovin Corporation -11.85%
Robinhood Markets, Inc. -6.82%
MicroStrategy Incorporated Class A +0.98%
Tesla Motors, Inc. -2.19%
UBIQUITI INC -3.10%

AppLovin Corporation

APP

0.00

Robinhood Markets, Inc.

HOOD

0.00

MicroStrategy Incorporated Class A

MSTR

0.00

Tesla Motors, Inc.

TSLA

0.00

UBIQUITI INC

UI

0.00

The "MAGA 7" refers to the seven stocks that have surged the most since Donald Trump’s election victory, each boasting a market cap exceeding $15 billion as of November 5. These companies include  AppLovin Corporation(APP.US) ,  Robinhood Markets, Inc.(HOOD.US) ,  MicroStrategy Incorporated Class A(MSTR.US) ,  Tesla Motors, Inc.(TSLA.US) ,  UBIQUITI INC(UI.US) ,  Coinbase Global, Inc.(COIN.US) , and  Williams-Sonoma, Inc.(WSM.US) .

For years, the “Mag 7” stocks have dominated the market. However, with Trump’s return to the White House, a new group of stocks has captured traders' attention and has experienced significant gains since the presidential election.

The "MAGA 7" comprises stocks with a market capitalization of over $15 billion as of November 5, and the greatest gains since Trump's election. These companies are either directly or indirectly related to Trump and his government policies or have risen on the wave of a bull market.

The ascent of the MAGA 7 reflects market expectations regarding Trump administration policies, particularly in the realms of cryptocurrency and technology. 

Let’s get to know these rising stars of "MAGA 7"

1. AppLovin – AI-Powered Advertising Giant

Since Trump's election, shares of AppLovin Corporation(APP.US) have surged by 107.3%, with a market cap touching $114.9 billion. The company’s AI-driven ad recommendation engine AXON, coupled with initial successes in its e-commerce pilot projects, has fueled this stock price explosion.

Benchmark analyst Mike Hickey believes AppLovin's expansion into new areas like e-commerce and connected TV will be crucial growth drivers for future revenue and profit expansion.

2. Robinhood – Beneficiary of Crypto Trading Boom

On election night, Robinhood Markets, Inc.(HOOD.US)  reported its most active trading night ever. Since the presidential election, its stock has risen by 92.9%, with its market cap ballooning from $22.06 billion to $42.56 billion.

Mizuho Securities analyst Dan Dolev notes:

"A more crypto-friendly government with less stringent regulation could accelerate Bitcoin adoption, driving broader user engagement in crypto trading activities."

3. MicroStrategy – Big Bet on Bitcoin

MicroStrategy Incorporated Class A(MSTR.US), a business software company and crypto investor, is another winner among the MAGA Seven. Trump's campaign promise to establish a strategic Bitcoin reserve has propelled MicroStrategy's stock up 74.06% since Election Day, taking its market cap to $97.73 billion.

The company has made Bitcoin its primary reserve asset and continues to expand its holdings, with a new round of capital raising further boosting its strength.

4. Tesla – Dual Category Star

Tesla Motors, Inc.(TSLA.US)  is the only company in both the Mag7 and MAGA 7 groups. CEO Elon Musk has close ties with Trump and has been appointed co-head of the new 'Government Efficiency Department.'

Musk supported Trump’s re-election campaign last year, donating about $200 million and attending rallies with Trump. This has pushed Tesla's stock up 69.6%, swelling its market cap to $1.37 trillion.

5. Ubiquiti – Dark Horse in Network Technology

Shares of UBIQUITI INC(UI.US)  have soared 224.04% over the past 12 months, rising 56.3% post-election. The company has hit revenue records for two consecutive quarters.

Analysts have taken note. BWS Financial recently hiked its Ubiquiti target price from $385 to $440, citing the likelihood of December quarter results exceeding expectations. Analyst Hamed Khorsand wrote:

"Ubiquiti has provided exact product launch timelines, which should boost full-year order rates."

6. Coinbase – Leader in Crypto Trading

Coinbase Global, Inc.(COIN.US) is positioned to benefit from the Trump administration's cryptocurrency strategy. Since November 5, Coinbase’s stock has surged 52.3%, with the market cap reaching $73.97 billion.

Raymond James analyst Patrick O'Shaughnessy stated in a recent report:

“With significant re-acceleration in trading volumes and rising crypto valuations, Coinbase has seen improvements post-election. The Trump administration has signaled a more favorable regulatory environment for the crypto sector, reviving bullish sentiment and eliminating long-standing regulatory uncertainties."

7. Williams-Sonoma – The Unexpected Winner

Despite not being traditionally seen as a “Trump stock,” Williams-Sonoma, Inc.(WSM.US)  has hit record highs post-election. Since November 5, its stock has risen 50.4%, with its market cap climbing to $24.97 billion.

On a recent Q3 earnings call, CEO Laura Alber said the company’s strategies to reinvigorate growth, bolster customer service, and drive earnings are working.

Morgan Stanley recently raised its target price for Williams-Sonoma to $170, citing consistent revenue and sustained strong margins. Analyst Simeon Gutman said this indicates Williams-Sonoma’s performance aligns with company projections.

Every question you ask will be answered
Scan the QR code to contact us
whatsapp
Also you can contact us via