Call it the junior Trump Bump—the stocks of several obscure companies have soared in recent weeks after announcing tie-ups with Donald Trump Jr., the President-elect's eldest son.
Shares of PSQ Holdings (PSQH), the operator of "anti-woke" marketplace PublicSquare, nearly tripled in value on Tuesday when it named Trump Jr. to its board of directors. He's expected to hold the position until at least the company's 2026 annual shareholder meeting.
The announcement came just a week after Unusual Machines (UMAC), a drone parts supplier, announced it had appointed Trump Jr. to its advisory board, igniting a flurry of speculative buying. Investors traded 56 million shares the day of the announcement, more than twice the stock's total volume since it began trading in February. As of mid-November, Unusual Machines had just 8.3 million outstanding shares to trade.
Since last month's presidential election, the stocks of several companies have soared on their proximity to Trump. Tesla (TSLA) shares have gained nearly 50% thanks to Chief Executive Officer (CEO) Elon Musk's close relationship with the President-elect. Shares of Liberty Energy (LBRT) rose 12% the week after Trump named its CEO, Chris Wright, as his Energy Secretary.
The two companies are both small and new. PSQ Holdings went public via a merger with a special purpose acquisition corporation (SPAC) in July 2023. Shares began trading above $10 that month but had slid to just over $2 by the time Trump Jr. joined the board. In its most recent quarterly results, it reported a net loss of $13.1 million on $6.5 million in revenue.
Unusual Machines has been public for less than a year. It lost $2.1 million on $1.5 million of revenue in the three months through September.
Each stock's surge has ballooned its market capitalization. PSQ Holdings' market value stood at about $167 million at midday on Thursday, while Unusual Machines' was about $126 million.
Trump Jr. and his siblings are not expected to take roles in the White House next year, though he and his younger brother Eric were active on the campaign trail. They are expected to remain close to their father and have at least some influence over who gets his ear.
Trump Jr.'s work with the two companies will deepen his involvement with the "anti-woke" economy. Shortly after his father was re-elected, Trump Jr. joined 1789 Capital, an investment firm "that provides financing to companies in the budding Entrepreneurship, Innovation & Growth ('EIG') economy." The firm was founded by Omeed Malik, a former hedge fund advisor at Bank of America Merrill Lynch and CEO of the SPAC that took PSQ Holdings public.
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