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    • Private prisons, crypto stocks even gain Tesla after Trump’s victory
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    Private prisons, crypto stocks even gain Tesla after Trump’s victory

    Vaseline Posted on

    Topline

    Tesla may have been the most prominent stock market winner this past week, but there are several stocks that have outperformed the Elon Musk-led car company thanks to similar optimism about macro conditions under the new administration.

    Key facts

    Tesla shares’ 39% gain from last Tuesday’s close through Monday is by far the largest among all 101 U.S. publicly traded companies valued at $100 billion or more, more than double the 18% rally of the the second best performer of that bunch, software defense contractor Palantir.

    But other smaller companies have surpassed Tesla since Donald Trump secured a second presidential term, several of which are law enforcement-related areas that could benefit from Trump’s border control and tough-on-crime agendas.

    The only S&P 500 company to surpass Tesla is Taser’s parent company Axon company at 40%, while shares of multi-billion dollar private prison companies KernCivic And Geo group— which are Immigration and Customs Enforcement contractors — are up 76% and 75%, respectively, since Election Day.

    And a slew of cryptocurrency-related stocks have skyrocketed in the past week as the world’s largest digital asset soared to a record above $86,000 as traders reacted to Trump’s embrace of the industry during his campaign.

    Crypto exchange Coin base shares are up 67% since last Tuesday MicroStrategya 35-year-old enterprise software company best known for its roughly $25 billion in bitcoin holdings has posted a 49% gain, while shares of crypto-leaning retail investing platform Robinhood have risen 31%, just behind Tesla.

    Bitcoin mining stocks have similarly risen as the companies involved in the energy-intensive process of unlocking bitcoin on the digital blockchain enjoyed a double boost from a surge in cryptocurrency interest and hopes for regulatory easing for the sector. Clean spark, Riot platforms And Marathon digital have increased by 67%, 54% and 54% respectively.

    Why private prison shares have risen so much

    Shares of CoreCivic and Geo Group were further boosted Monday by Trump’s appointment of Tom Homan as his “border czar,” with the former acting ICE director championing a “humane” but “necessary mass deportation operation.” In a conference call last Thursday, Geo Group Chairman George Zoley said he expects the government to fund 70,000 to 100,000 beds in ICE detention centers, about double the 41,500 beds currently funded. Geo Group could increase the number of operational beds in the ICE detention center from 13,000 to 31,000 next year, predicts Brendan McCarthy, an analyst at the independent research firm Sidoti. McCarthy expects 2025 sales of $3 billion for Geo Group, up 24% from 2024 blended sales.

    Important background

    US stocks have risen almost across the board since the election, with the blue chip Dow Jones Industrial Average up 5% and the small company Russell 2000 up 8% since last Tuesday. This broad rally has several directions, but the potential for lower corporate tax rates and an expected rebound in mergers and acquisitions activity under the looming Trump administration are among the key factors behind the financial markets’ surge. Bernstein analyst Gautam Chhugani, who last week correctly predicted that bitcoin would soar to over $80,000 if Trump won, titled his weekly note to clients “Welcome to the crypto bull market – buy everything you can,” reflecting the almost euphoric attitude that prevails among cryptocurrencies. investors.

    Read more

    ForbesWhat you need to know about Trump’s new ‘border czar’ Tom HomanBy means of Mary Whitfill Roeloffs

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