The stock market often reacts to big events in ways that signal potential shifts in the business landscape, and Donald Trump’s victory in this year’s election was no exception. As the markets surged, tech stocks reacted in different ways—some gaining rapidly while others lagged. What does this mean for Big Tech under a possible second Trump term? Let’s break down the winners, the losers, and the surprises that could shape the future of the industry.
Apple: At the Bottom of the List
When you think of tech giants, Apple is typically at the top of the list. However, following Trump’s win, Apple found itself among the slowest performers. The primary concern? The possibility of harsher tariffs on Chinese-made goods. Apple, which manufactures most of its iPhones in China, could face significant challenges if Trump implements the blanket tariffs he’s promised. While the company’s stock still saw a rise along with the broader market, its smaller gains compared to other tech players suggest that investors are wary of the potential economic disruption these policies could cause.
Tesla: The Undisputed Winner
Tesla, on the other hand, had a standout performance post-election. CEO Elon Musk’s support for Trump, paired with the president’s public praise for the electric vehicle (EV) mogul, has clearly benefitted Tesla. Despite the possibility of a reduction in electric vehicle incentives under a second Trump term, Tesla is in a strong position thanks to its massive scale and profitability. With government-backed incentives less critical now, Musk’s political backing seems to be paying off, and investors are clearly feeling optimistic about Tesla’s future growth under the Trump administration.
Google: A Surprise Gainer
Perhaps the biggest surprise is Google (or its parent company Alphabet), which saw significant stock gains after Trump’s victory. Although Trump has criticized Google in the past, the prospect of regulatory rollbacks in the future could benefit the search giant. Google stands to gain from lighter antitrust enforcement, which could remove some of the regulatory hurdles it has faced in recent years. Additionally, Alphabet’s investments in autonomous driving through Waymo might also get a boost, making the company a surprising winner in the current climate.
Meta: Political Overhang
Meta (formerly Facebook) appears to be one of the more vulnerable players in the Big Tech world after Trump’s win. Trump has made no secret of his disdain for Mark Zuckerberg and Meta’s political leanings, particularly after Zuckerberg’s financial support for voting initiatives in 2020. Given Trump’s animosity toward Big Tech, especially companies he feels have favored the Democratic party, Meta may face more scrutiny, and its stock hasn’t performed as well in the days following the election. Investors are likely cautious about the potential for political fallout that could drag down Meta’s growth under a second Trump term.
What This Means for Big Tech in the Future
The results of this election show how deeply the tech industry could be influenced by political leadership. While some companies, like Tesla and Google, stand to benefit from a Trump presidency, others, like Apple and Meta, face uncertain futures. As Trump potentially moves forward with policies aimed at reshaping industries, tech companies will have to adapt quickly to navigate this new landscape. For investors, it’s crucial to pay attention to how these companies position themselves as the regulatory environment continues to evolve.