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Trump trades tank across the board as bust-up with Musk unravels into public brawl

Investments premised, in part, on ties to Trump 2.0 suddenly look riskier.

6/5/25 2:10PM

Trump trades stumbled hard amid a bizarre, live-on-TV spat between President Trump and erstwhile political ally Elon Musk.

It was perhaps the clearest demonstration that some of those investing in the so-called Trump trades — shares of companies with ideological, financial, or professional ties to the reality-TV-star-turned-president that have seen their shares surge since his 2024 election victory — were, in part, making a bet that these companies will remain in Trump’s good graces long enough to monetize some of that political juice.

That bet suddenly looks a lot more precarious after the bizarre White House press conference, where the president and the world’s richest man swapped insults and castigations using their mediums of choice — Trump, a bank of television cameras, and the Tesla CEO, through X, the social media site he purchased in 2022.

As silly as the specter was, it’s worth noting that there are real business implications at stake. Trump alleged that Musk’s recent campaign to kill a tax-cutting bill making its way through Congress came because it included provisions doing away with key tax incentives for electric vehicles that have been crucial to Tesla.

That means, to the extent that traders have been betting that the Trump administration would bend key government policies to shield and/or reward close political and financial allies like Musk — a pretty fair definition of corruption, by the way — were wrong, at least in this instance.

That reality seems to be prompting a bit of reconsideration for those who have been riding Trump-related trades. Shares of Palantir, Trump Media & Technology Group, GEO Group, as well as bitcoin all slumped somewhat in the aftermath of the Musk spat, which the president has apparently now taken to Truth Social.

Luke Kawa

12h

Opendoor soars as co-founders Keith Rabois and Eric Wu added to board of directors, Shopify COO Kaz Nejatian appointed as new CEO

Opendoor Technologies is soaring after announcing that two of the online real estate company’s co-founders, Keith Rabois and Eric Wu, have been added to its board of directors. Rabois will serve as Chairman.

The company said Wu and Rabois’ VC firm are buying $40 million in Opendoor stock via a private investment in public equity (PIPE) financing.

In addition, Opendoor has poached Shopify COO Kaz Nejatian to serve as its new CEO after Carrie Wheeler resigned in mid-August.

“Literally there was only one choice for the job: Kaz. I am thrilled that he will be serving as CEO of Opendoor,” said Rabois.

The company touted that it’s “going into founder mode” with these additions in its press release, with lead independent director Eric Feder championing this injection of “founder DNA.”

That exact phrase, “founder DNA,” was used by Eric Jackson, architect of the initial rally and social interest in Opendoor, as he openly campaigned for these very two individuals to be added to the board.

This underscores how far the company is willing to go in embracing a new strategy of listening to its investors (particularly the most prominent one, it seems!) as management aims to engineer a fundamental turnaround in its business to match the optimism embedded in its stock price.

Nia Warfield, Luke Kawa

12h

Three stocks power S&P 500 to fresh record closing high

Eighty-three basis points of today’s return in the SPDR S&P 500 ETF, more than 2x its daily gain, were attributable to Oracle and the two leading US chip designers, Nvidia and Broadcom.

Oracle’s RPO Remaining Performance Obligations

What is an RPO, the number that drove Oracle’s giant share move?

Matt Phillips, Max Knoblauch15h

Luke Kawa

16h

“Pokemon” trading cards skyrocketing in value and GameStop’s collectibles business taking off are two sides of the same coin

The Wall Street Journal’s fantastic piece “The Hot Investment With a 3,000% Return? Pokémon Cards” includes this vignette:

“...the cards caught fire among amateur investors during the pandemic. As some investors banded together to spark the GameStop meme stock mania, a more fringe group of traders, also stuck at home and armed with cash from government stimulus, began scooping up Pokémon cards.”

And the connection between “Pokemon” cards and the video game retailer is in fact even closer than that:

GameStop’s collectibles business played a big role in why it smashed Q2 revenue expectations! Sales in this segment exceeded $227 million, while the two analysts that provided forecasts had an average estimate of $170.4 million. Fiscal year to date, sales of collectibles make up 25.8% of its revenues, up from 16.4% at this time last year.

The company significantly expanded its footprint in the “Pokemon” trading card world in 2024 by launching in-store buying and selling of individual cards, and introduced “Power Packs,” which include one card graded at 8 or above by the Professional Sports Authenticator, in its most recent quarter.

As a 35-year-old man who still plays “Pokemon” (Nuzlockes are peak math + strategy entertainment!), thinks the release of “Pokemon Go” marked the peak for Western civilization, and considers Christmas 1998 to be the second-best day of his life because it’s when he got “Pokemon Red,” I personally view the outperformance of “Pokemon” cards as being indicative of the power of nostalgia coupled with a drop-off in child rearing by millennials, leaving more room for discretionary purchases and investments.

And the nostalgia business seems like a great place to be.

The Hot Investment With a 3,000% Return? Pokémon Cards

“...the cards caught fire among amateur investors during the pandemic. As some investors banded together to spark the GameStop meme stock mania, a more fringe group of traders, also stuck at home and armed with cash from government stimulus, began scooping up Pokémon cards.”

And the connection between “Pokemon” cards and the video game retailer is in fact even closer than that:

And the nostalgia business seems like a great place to be.

Luke Kawa

17h

Oracle’s hyperscaler competitors lag after the cloud computing giant’s blowout revenue forecast

Oracle’s forecast for mind-blowing revenue growth through its fiscal 2030 is lifting most AI-adjacent stocks today.

However, the ones being left behind in this rising tide, falling or lagging well behind Morgan Stanley’s basket of AI tech beneficiaries (up 5.8% as of 12:22 p.m. ET), are its fellow hyperscalers.

Microsoft and Alphabet, which also have massive cloud divisions, are positive — but only just. Amazon, whose cloud revenue growth was deemed a disappointment relative to peers this quarter, is down 2.8%. Meta is down 1.2%.

This suggests, at the very least, that traders aren’t mapping Oracle’s outlook for Nvidia-like revenue growth onto the other major cloud players or one of their biggest customers.

Trump trades tank across the board as bust-up with Musk unravels into public brawl

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The Hot Investment With a 3,000% Return? Pokémon Cards

Oracle’s hyperscaler competitors lag after the cloud computing giant’s blowout revenue forecast

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