Quite a few tech stocks have dropped since the conclusion of the Presidential Election 2016 where Donald Trump won the electoral vote. In fact, popular market stocks such Amazon, Google, and Facebook fell during the first few days of the President Elect’s victory. Even though they have bumped back up since then, each still remains lower than pre-election.
That is, except for Microsoft (MSFT) which is at an all-time high! In fact, MSFT has risen nearly 5% in lieu of Trump’s effect on stocks. CNN Money reports that speculation is rising among investors and fund managers about the reason that Microsoft could be pulling ahead compared to its competitors.
“One possible reason? The likelihood of lower taxes thanks to a Trump administration and Republican-controlled Congress,” CNN theorized today stating that repatriating the $111.1 billion dollars held in the tech giant overseas could be brought to invest in U.S. infrastructure.
However, a simpler speculation is that Microsoft CEO Satya Nadella has been more cordial than many other tech companies towards the President Elect Donald Trump. Nadella even congratulated the victory over Hillary Clinton and agreed to meet with the administration this Wednesday with other tech leaders.
Of course, on an unrelated note to election’s effect on the economy, Microsoft’s growth towards cloud computing could have just come at a more convenient time.
Why do you think the MSFT stock has risen as of late? Be sure to let us know what your thoughts are in the comments below.Further reading: Donald Trump, Election 2016, Microsoft, MSFT, Stock