Stock prices of Trump allies soar after election

Tech billionaire Elon Musk and President-elect Donald Trump have spent time together almost every day since the election. The two addressed lawmakers in Washington, D.C., sat ringside at a UFC fight in New York City and attended a rocket launch in South Texas.

Investors also seem to be paying attention. Shares in Musk’s Tesla Inc. have soared nearly 40% since Trump was reelected about two weeks ago. But electric car makers aren’t the only Trump allies to enjoy a surge in stock prices following his victory.

As first reported by The New York Times, shares of Apollo Global Management, the investment firm whose CEO Mark Rowan is said to be under consideration as Treasury secretary, rose more than 12%.

Similarly, Palantir, a data analytics company founded by longtime Trump supporter Peter Thiel, has risen 23% since Election Day.

Private prison company GEO Group donated $500,000 to a pro-Trump super PAC, and company executives Brian Evans and George Zoley each made individual contributions to support Trump. The company’s stock price has soared 87% since the election.

Shares of the featured companies have far outperformed the S&P 500 index, which is up about 2.5% since Election Day.

Tesla did not immediately respond to ABC News’ requests for comment, nor did Apollo Global Management, Palantir or GEO Group.

Tom Essay, president of financial data firm Sevens Report Research, said the big gains in a range of stocks tied to Trump’s allies are a sign that some investors believe the president will reward his friends with preferential treatment. He said that he was expressing his view.

“The market is incredibly sensitive and tries to take advantage of every stock it can,” Essay told ABC News. “This definitely reflects people’s perception of Trump.”

Trump’s transition team did not immediately respond to ABC News’ request for comment.

Experts told ABC News that a new presidential administration typically bodes well for some industries and bad for others, depending on the incoming president’s policy priorities. . President Trump has touted policy proposals widely seen as pro-business, including deregulation and extending the landmark tax cuts enacted during his first term.

Some experts said part of the rise in the stock prices of some companies with ties to President Trump could be attributed to an overall shift toward pro-business policies.

“It’s not unusual to see stocks rise in sectors where the new administration is likely to do better than past policies,” CNBC founder Tom Rogers told ABC News.

But the surge in prices of certain stocks associated with Trump’s allies points to an entirely different trend stemming from the view that Trump is a trading leader and may face fewer guardrails in a second term. Mr. Rogers also said that

“Trump has created a new demographic of people who are more likely to support or hate corporations based on their political views and their level of support for themselves,” Rogers added. “It’s natural for the market to consider these factors.”

In recent weeks, some top CEOs have appeared to be seeking improved relations with Mr. Trump.

Days before this year’s election, Amazon executive chairman and Washington Post owner Jeff Bezos blocked the paper’s plans to endorse Vice President Kamala Harris. “There is no quid pro quo of any kind at work here,” Bezos said in an op-ed for the newspaper discussing the decision. Bezos acknowledged that the decision could present “indications” of a conflict of interest.

In the days after the election, Mr. Trump announced that Mr. Bezos, Apple CEO Tim Cook, Google CEO Sundar Pichai, and OpenAI CEO Sam Altman ( We received congratulatory messages from the CEO and others.

Tesla may find itself in trouble under the Trump administration. The president-elect has harshly criticized the electric car industry and vowed to eliminate subsidies given to electric car buyers. Still, Tesla’s stock price has risen as Musk has emerged as a top advisor to President Trump, including his selection as co-chair of the new Government Efficiency Commission.

“The fact that Elon Musk is so close to the administration, and indeed joins it in some capacity, suggests that all this talk won’t hurt his company. ” said finance professor Nejat Seihun. The University of Michigan, which studies market activity, told ABC News.

Many of Trump’s other allies have made gains for their companies since the election.

TKO Group Holdings is the parent company of Ultimate Fighting Championship and is led by CEO Dana White, who also addressed Trump supporters at last month’s Republican National Convention and rally at Madison Square Garden. Since President Trump’s victory, TKO Group’s holdings have increased by more than 10%.

A spokesperson for TKO Group Holdings did not respond to ABC News’ request for comment.

Steve Schwartzman, a Republican mega-donor who endorsed Trump in May, heads asset management giant Blackstone. The company’s stock price has increased about 9% since voting day. Energy pipeline company Energy Transfer, whose chairman Kelsey Warren donated $5 million to a pro-Trump super PAC, has seen its stock rise more than 6% in the past two weeks.

Neither Blackstone nor Energy Transfer immediately responded to ABC News’ requests for comment.

Indeed, some companies with ties to President Trump and his allies have seen their stock values ​​decline since the election. Shares in Las Vegas Sands, the casino owned by Trump megadonor Miriam Adelson, have fallen about 2% over the past two weeks. Trump-owned Truth Social has seen its stock price fall more than 13% since Election Day.

Some experts told ABC News that the surge in some companies with ties to Trump could quickly fade.

“If someone who was supposed to be friendly to the Trump administration doesn’t get what corporate interests are looking for, then that atmosphere may come out for the first time,” Rogers said. “It’s probably a logical bet for now.”

Seihun of the University of Michigan agreed. “This initial buying is a very strong fear of missing out,” he said.