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What you need to know
- Shares of PSQ Holdings, the owner of "anti-woke" marketplace PublicSquare, and Unusual Machines, a drone parts provider, each surged more than 200% after announcing relationships with Donald Trump Jr. in recent weeks.
- Both companies are not profitable and generate quarterly revenues of less than $10,000,000, yet they have market values in the nine figures.
- Trump Jr. will not be joining his father in Washington. However, he could have influence within the inner circle of his father.
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.
The operator of PSQ Holdings, PSQH (Shares), is a company that has shares of PSQ Holdings. “anti-woke” PublicSquare nearly tripled its value when Trump Jr. joined the board of directors. The position is expected to be held until the 2026 shareholder’s meeting.
This announcement was made just one week after Unusual Machines, a drone part supplier, had announced that Trump Jr. would be joining its advisory board. The news sparked a wave of speculation. On the day the announcement was made, investors bought and sold 56 million shares. This is nearly twice as much stock volume that has been traded since the company began trading. Unusual Machines’ outstanding stock was just 8,3 million shares at mid-November.
Stocks of various companies rose in value after the presidential election last month. Tesla’s (TSLA), shares are up nearly 50% due to Elon Musk, Chief Executive Officer of Tesla. Liberty Energy’s (LBRT) shares rose 12% in the week following Trump’s appointment of Chris Wright to be his Energy Secretary.
Stock Boosts for Small Business
These two firms are new and small. PSQ Holdings was listed in July of 2023 through a merger between a SPAC and a PSQ Holdings. The shares began to trade above $10 in July, but they had fallen below $2 when Trump Jr. was appointed. The company’s most recent quarter results showed a $13.1-million net loss on $6.5-million in revenue.
Unusual Machines is a public company that has existed for less then a year. In the third quarter, it lost $2.1m on revenues of $1.5m.
Market capitalizations have soared as a result of the stock price increases. PSQ Holdings market value was $167m at noon on Thursday. Unusual Machines stood at around $126m.
Trump Jr. at Wall Street
Trump Jr. is not expected to be involved in any way with the White House, even though his brother Eric was active on the campaign trail. The siblings are expected to stay close to their dad and to have some influence on who gets to hear his voice.
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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The Wall Street Journal “Unusual Machines (UMAC) – Historical Prices.”
Unusual machines “Form 10-Q.”
SPQ Holdings "Form 10-Q."
1789 Capital. “1789 Team.”
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