🎯 4 Stocks That Move With US Politics

Welcome back to another issue of Trendline!

Tariffs are still dominating the news cycle, but something else caught my eye.

Yesterday, a penny stock, Salem Media, skyrocketed 283% after news broke that Donald Trump Jr. and his wife took a stake in the right-wing Christian radio network.

Penny stocks are the wild west, and I recommend readers of this newsletter steer clear. But naturally, I got curious: Which other stocks benefit from political affiliation, either explicitly or indirectly?

Let’s take a look👇

Note that this post is not intended to generate any political commentary (I am not interested in US politics). I’m curious about these stocks purely from an “outside-in” perspective.

1) AXON: Axon makes TASERs and body cameras, but it’s real engine is software. In 2024, Axon crossed $1B in annual recurring revenue, selling software services to police departments who use the company’s products for digital evidence and records systems.

With local law enforcement as its core customer, Axon tends to benefit from pro-policing rhetoric and spending, often championed by right-leaning politicians.

The stock is up +687% in the last 5 years, but has seen a drawdown of 20% from its peak in the tariff driven market correction, signalling a good buying opportunity.

2) FOX: Fox News needs no introduction. As the leading conservative media network, it plays a central role in shaping the right-wing discourse in US.

Revenue jumped +21% YoY in Q4 2024 after Trump was re-elected, highlighting how the company’s fortunes rise with political tailwinds. The stock is up +60% over the past 12 months, far outpacing the S&P 500’s +8%.

3) Rumble: While researching this post, I came across Rumble - a video platform positioned as a “free speech” alternative to YouTube, with a strong user base among right-wing creators and audiences.

The company is still unprofitable but has grown revenue by +142% in last 2 years to reach ~$95.5 million in 2024.

Note that the company went public via SPAC route in 2022, which has less regulatory scrutiny than the traditional IPO process. Historically, SPAC-backed stocks haven’t performed well for investors.

4) Truth Social: If Rumble is the alt-right version of YouTube, then Truth Social is the alt-right version of Twitter. Launched by Donald Trump after being banned from mainstream platforms in 2021, Truth Social positions itself as a censorship-free platform for conservative voices.

Unlike Rumble, its financials are extremely weak: just $3.6 million in revenue in 2024 against more than $180 million in operating expenses.

Yet the market cap topped $10 billion at its October 2024 peak and remains above $4 billion today.

Truth Social operates less as a business and more as political vehicle, making it highly volatile and deeply tied to Trump himself, who owns 52% of the company.

Important Disclaimer: The content in this newsletter is for educational and informational purposes only and should not be considered financial or investment advice. Always do your own research or consult a professional before making financial decisions.