A look back at history shows that the stock market has performed better under a democratic leader. It’s often the case that Democrats are proponents of programs that favor the the middle class, leaving Americans with more money to invest. The outcome of this election between Hillary Clinton and Donald Trump will likely breed similar results. Many on Wall Street anticipate a Donald Trump presidency would lead to massive volatility in the markets, while a Hillary Clinton presidency would closely mirror the Obama administration and hence keep things steady. If Hillary Clinton emerges victorious come November, there are several companies that should be high on investor’s wishlists.
Hillary Clinton has deep ties with Silicon valley and has cultivated relationships with some of tech’s titans, one of them being Facebook Inc (NASDAQ:FB)’s Sheryl Sandberg. The real upside for Facebook isn’t necessarily drawn out of the democratic proposed policies but rather the benefit of not having a Trump presidency. On multiple occasions, Trump has dismissed and antagonized the tech sector, calling out names like Apple and Amazon. Meanwhile, Hillary has advocated for greater investment in STEM education and expanding broadband access worldwide. A byproduct of greater internet access is more Facebook accounts and engagement. If Facebook can continue to grow its current user based, which is already enormous, then sky’s the limit for the social media company.
First Solar, Inc.
Clean energy is the sustenance of any Democrat’s platform and Clinton isn’t any different. Her campaign pledges to install 500 million solar panels by the end of her first term, roughly 7 times today’s capacity. This would give a huge boost for the otherwise struggling solar industry. First Solar, Inc. (NASDAQ:FSLR) has been one of the lone outperformers in the space, consistently topping earnings and revenue quarter after quarter. SolarCity might not see as much upside given its deep seated structural flaws and financial problems.
In the past, Hillary has supported net neutrality and the efforts to enforce open internet rules. Netflix, Inc.(NASDAQ:NFLX) has been one of the most outspoken champions of net neutrality. If there are any restrictions on download size or speed it could put a huge damper on Netflix’s business model which facilitates binge watching TV shows. Netflix is having a difficult 2016 after financial pundits prematurely lumped them in with Facebook, Amazon and Google (FANG). Shares are down 16% year to date and about 5% in the past 12 months. This comes after a string of weaker than expected earnings and decelerating user growth. A Clinton presidency wouldn’t necessarily jump start growth but it wouldn’t stunt it.
Cyberark Software Ltd
Cyberark Software Ltd (NASDAQ:CYBR) is one of the biggest threats to our national security and it’s only getting worse. In all likelihood, the next war won’t be on the ground but through computers. Clinton’s proposed plan on promoting secure networks include safeguarding the flow of information across borders while protecting online privacy and security. This is not a small feat and will take some of the greatest minds in Silicon Valley to keep our data safe. We have already seen an influx of companies begin to tackle these problems and under Hillary they will only grow larger. They include names like Cyberark, Cisco, FireEye, and Checkpoint.