Donald Trump Tries to Take His Merit for MAGA Stock Rise

On Feb 12, 2020 at 11:18 am UTC by Teuta Franjkovic · 4 min read
Donald Trump Tries to Take His Merit for MAGA Stock Rise
Photo: World Economic Forum / Flickr

President Trump called four big tech companies with trillion-dollar market caps, Microsoft, Apple, Google and Amazon, the MAGA club. MAGA is also a short form of ‘Make America Great Again’, a favorite slogan of Trump and his supporters.

United States President Donald Trump called out four tech giants for becoming a trillion-dollar companies – thanks to his merits. And not just that. We all remember his slogan ‘Make America Great Again’ (MAGA), right? Well, he went that far to call Microsoft, Apple, Google and Amazon – MAGA. Yep, you read that right.

According to a press pool report, Trump said:

“For 144 days, we set a record stock market. It means 401Ks, it means jobs. Four trillion dollar companies: Apple, Amazon, Google, Microsoft. You have MAGA. The trillion dollar club.”

It is the truth though that some people on Wall Street did actually use that term to name the group of stocks that have brought the market to grow. Those stocks did add $520 billion in market cap this year alone. However, we also have a name for these companies. But we prefer the term GAMA.

Trump Blames Others When Stocks Fall

However, Trump has almost always been taking credit for the stock market’s gains. And, let’s not forget – he has been blaming others when indexes would start to drop. Just on Tuesday, he blamed Federal Reserve Chairman Jerome Powell for the fact that the Dow Jones Industrial Average turned lower after opening in the green. Powell started yesterday his semi-annual Congress testimony shortly after markets opened on Wall Street.

Trump then wrote:

“When Jerome Powell started his testimony today, the Dow was up 125, & heading higher. As he spoke it drifted steadily downward, as usual, and is now at -15. Germany & other countries get paid to borrow money. We are more prime, but Fed Rate is too high, Dollar tough on exports.”

Be it as it may, the stock market is currently living through its longest bull market ever. It all began back in 2009 when Barack Obama was still president. It continued under Trump as well.

FTC Reviewing Big Tech Acquisitions

However, we shouldn’t forget that the Trump administration sometimes had pretty strained relationship with some big tech companies. Trump’s comments came just hours after the Federal Trade Commission pledged to examine prior acquisitions by all four companies. The FTC said it will review past acquisitions made by five big technology companies – Apple Inc., Facebook.Inc., Alphabet Inc., Microsoft Corp. and Amazon.com Inc. – in order to determine if there had been antitrust violations under the Hart-Scott-Rodino Act.

The announcement reads:

“The orders will help the FTC deepen its understanding of large technology firms’ acquisition activity, including how these firms report their transactions to the federal antitrust agencies, and whether large tech companies are making potentially anticompetitive acquisitions of nascent or potential competitors that fall below HSR filing thresholds and therefore do not need to be reported to the antitrust agencies.”

So, the two members of the ‘MAGA’ stock group are also part of FAANG, a term widely known on Wall Street. Its parts are tech stocks Facebook, Amazon, Netflix and Google, whose parent’s name is Alphabet.

Adding More Stocks to the ‘MAGA Family’

Some analysts are arguing that Microsoft should be added to the ‘family of the biggest’ as well. Microsoft shares gained 55.3% in value last year That outperformed the 28.9% return of the S&P 500 index. Tesla, on the other hand, recently reported that its global deliveries rose more than 50% last year. It said it delivered a record of about 112,000 vehicles in the fourth quarter and about 367,500 for the full year.

Microsoft (MSFT) was rising in premarket by 0.93% to $186.16 at 5:38 am ET, Tesla (TSLA) was growing 0.99% to $782.06 at 5:39 am ET. Facebook (FB) stock was up 0.54% to $208.30 at 5:40 am ET while Amazon (AMZN) grew by 0.61% to $2,164 at the same time. Alphabet (GOOGL) was up 0.72% to $1,521 at 5:41 am ET.

Business, Editor's Choice, Markets, News, Stocks
Teuta Franjkovic
Author: Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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