A victory for Donald Trump in the November presidential election could have widespread implications for a host of industries, from big tech M&A to electric vehicle makers, say analysts.
Former President Trump made a triumphant appearance at the Republican National Convention Monday just days after a failed assassination attempt in Pennsylvania. Trump, who appeared with his ear bandaged following the shooting, secured the GOP nomination at the Convention and has chosen Ohio junior senator J.D. Vance as his running mate.
Analysts have been weighing the potential impact of a Trump White House. “In our view in the scenario that Trump wins the White House in November and a much weaker FTC and friendlier Beltway for deals, we would expect an accelerated M&A environment to take place for Big Tech and believe a potential Google/Wiz deal would be just the tip of the iceberg to a massive M&A cycle for Big Tech in 2025,” wrote Wedbush analyst Dan Ives, in a note released Sunday.
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“We have seen every Big Tech deal scrutinized over the past few years as the FTC and Lina Khan have aggressively been focused on blocking tech deals of all shapes and sizes from the likes of Amazon, Microsoft (e.g. Activision), Google, and Meta among others,” wrote Ives.
On Sunday the Wall Street Journal reported that Google parent Alphabet Inc. GOOG, +0.75% GOOGL, +0.79% is in advanced talks to buy cybersecurity startup Wiz for roughly $ 23 billion in what would be the tech giant’s largest-ever acquisition. Neither Alphabet nor Wiz has yet responded to a request for comment.
Alphabet Inc. Cl A ended Monday’s session up 0.8%, and is up 0.3% in premarket trades Tuesday. Alphabet Inc Cl C closed up 0.8% Monday and its up 0.4% premarket.
Google parent Alphabet may buy cloud-security startup Wiz in $ 23 billion deal: report
Trump’s VP pick has also piqued interest in what his possible administration could mean for the tech sector. Vance has experience in venture capital, where he worked alongside influential billionaire investor and XLK XLK entrepreneur Peter Thiel, the co-founder of PayPal Holdings Inc. PYPL, +0.33%, Palantir Technologies Inc. PLTR, +2.14%, and Founders Fund.
Tesla Inc. TSLA, +1.78% and SpaceX CEO and X owner Elon Musk praised Trump’s decision to choose Vance as his V.P. on Monday.
“Congratulations @JDVance1! Excellent decision by @realDonaldTrump,” he wrote on X, formerly Twitter.
“TRUMP VANCE,” added Musk, in a subsequent post. “Resounds with victory.”
Musk fully endorsed Trump’s campaign for the presidency shortly after Saturday’s assassination attempt.
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In a note released July 11 Wedbush analyst Ives examined the prospects for the electric vehicle industry under a Trump administration. “We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled, however for Tesla we see this as a potential positive,” he wrote. “Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the US market over the coming years.”
Tesla shares, which ended Monday’s session up 1.8%, are up 1.3% in premarket trades Tuesday.
Trump’s possible international trade policy is also attracting attention. In a note released Monday Stifel analyst Drew E. Crum said that the possibility of tariffs has been weighing on toymaker Mattel Inc. MAT, -0.30%.
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“The bear thesis on MAT for most of the year has centered on a weaker ’24 toy outlook and difficult 2H Barbie comps, while persistent macroeconomic headwinds, rising shipping costs, and the prospect of a Trump Presidency (and accompanying tariffs), have been more recent (and incremental) drags, in our opinion,” he wrote. “The stock may lack a near-term catalyst, but we’re becoming increasingly more constructive on Mattel’s 2025-’26 entertainment line-up, the company’s investment grade balance sheet is in arguably the best shape it’s been in over the last decade, and valuations are cheap, all of which may appeal to investors with more of an intermediate/longer-term time horizon.” Stifel maintained its buy rating for Mattel.
Mattel shares, which ended Monday’s session down 0.3%, are down 0.7% in premarket trades Tuesday.