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Who would've known that these Chinese companies would outperform Trump and Musk?

January 30, 2025

Who would've known that these Chinese companies would outperform Trump and Musk?

American President Donald Trump and his South African Special Assistant, Elon Musk, aim to revolutionize our country while hoping to enrich themselves boosting the shares of their publicly traded companies. We are long on the Trump Media & Technology Group (Ticker: DJT) and short on Tesla Inc. (Ticker TSLA). So far, we are losing money on both positions. DJT went down instead of up. Tesla went up instead of down. 

DJT Stock. Down 11% in the last three months. 

  • The Trump Media & Technology Group Corp. (Ticker: DJT) closed today (Jan 30, 2025) at $31.60. This represents a decrease of $19.91, or approximately 39%, from its intraday high of $51.51 on October 29, 2024. On October 30, 2024, DJT closed at $35.40. Today's price represents a decrease of $3.80, or approximately 11%, over the three-month period.
TSLA Stock. Up 55% in the last three months. 

  • Tesla's stock (TSLA) closed today at $400.28. On December 18, 2024, Tesla had reached an intraday high of $488.54. This represents a decrease of $88.26, or about 18%, from its peak. However, Tesla is still ahead on a three month basis. On October 30, 2024, Tesla closed at $257.55. Today's closing price still represents an increase of $142.73, or approximately 55%, over the three-month period.

Being up 55% in just three months puts Tesla almost at the top of large cap U.S. publicly traded companies in the period. From the list of 5 high performers below, only Palantir Technologies Inc. (PLTR) beat Tesla in the past three months.

1. Palantir Technologies Inc. (PLTR): Up 79% in last three months

  • October 30, 2024, Closing Price: $12.50. January 30, 2025, Closing Price: $22.36. Price Increase: $9.86. Percentage Gain: 78.88%

2. Tapestry Inc. (TPR): Up 54% in last three months

  • October 30, 2024, Closing Price: $28.00. January 30, 2025, Closing Price: $43.10. Price Increase: $15.10. Percentage Gain:** 53.93%

3. Tesla Inc. (TSLA): Up 51% in last three months

  • October 30, 2024, Closing Price: $265.50. January 30, 2025, Closing Price:** $400.28. Price Increase: $134.78. Percentage Gain: 50.76%

4. Axon Enterprise Inc. (AXON): Up 44% in last three months

  • October 30, 2024, Closing Price:** $150.00. January 30, 2025, Closing Price: $216.50. Price Increase: $66.50. Percentage Gain: 44.33%

5. United Airlines Holdings Inc. (UAL): Up 41%

  • October 30, 2024, Closing Price: $39.20. January 30, 2025, Closing Price: $55.30. Price Increase: $16.10. Percentage Gain: 41.07%

These companies are operating in sectors expected to do well during the Second Coming of Trump. 

1. AI. Palantir Technologies Inc. (PLTR): This software company specializes in AI big data analytics, offering platforms for government operations (defense and intelligence) and for commercial applications (healthcare and finance). These four sectors are expected to continue experiencing robust growth in the United States of Trump and Musk.

2. Luxury. Tapestry Inc. (TPR): Luxury retailer owner of luxury lifestyle brands Coach, Kate Spade, and Stuart Weitzman has seen stronger than expected sales due to the economic boom in the United States and abroad. Luxury is the need that begins when real needs end. The amount of rich and affluent Americans in the U.S. is expected to continue increasing in the next years. 

3. Hype. Tesla Inc. (TSLA): This company began as an automaker then called itself a clean energy company and now pretends to be an AI company. The company has missed earnings and is not doing well, however, the market believes in Elon Musk and hopes that he can milk Trump to the benefit of Tesla shareholders.  

4. Police State. Axon Enterprise Inc. (AXON): This public safety technology is poised to gain from the anticipated increase in the Trump police state. Axon develops technology and weapons products for law enforcement and civilians. Its product lineup includes conducted electrical weapons (such as the Taser), body-worn cameras, and digital evidence management solutions. This company can be expected to continue doing super well in the new police state evolving in our country.

5. Travel. United Airlines Holdings Inc. (UAL): This airline is benefiting from increased demand for travel in the vibrant and strong American economy. It could also benefit from deregulation and lower fossil fuel prices. We are not investing in an airline and would not recommend doing it. It's a tricky industry and a money pit most of the time. It's future is always up in the air.  

Over the past three months, several Chinese publicly traded companies have experienced significant increases in their stock values. Of course, hindsight is 20 /20 and it is easy now how all these Chines companies beat Trump and Musk in the last three months. 

  1. Kingsoft Cloud Holdings Ltd. (KC): Current Price (January 30, 2025): $13.28. Price on October 30, 2024: $5.50. Increased by $7.78, a 141% gain.
  2. GDS Holdings Limited (GDS): Current Price (January 30, 2025):$23.05. Price on October 30, 2024: $10.25. Increased by $12.80, a 125% gain.
  3. Qifu Technology Inc. (QFIN): Current Price (January 30, 2025): $42.19. Price on October 30, 2024: $18.75. Increased by $23.44, a 125% gain.
  4. Atour Lifestyle Holdings Ltd. (ATAT): Current Price (January 30, 2025): $28.20. Price on October 30, 2024: $14.75. Has increased by $13.45 for a 91% gain.
  5. Trip.com Group Ltd. (TCOM): Current Price (January 30, 2025): $73.50. Price on October 30, 2024: $39.50. Has increased by $34.00, an 86% gain.

1. Atour Lifestyle Holdings Ltd. (ATAT): Atour is a leading hospitality and lifestyle company in China, recognized as the largest upper midscale hotel chain in China as of the end of 2023. The company operates a diverse portfolio of lifestyle hotel brands and is notable for being the first Chinese hotel chain to develop a "scenario-based" retail business by which hotel rooms are turned into showrooms for selling products. Think about product placement in TV shows and movies adapted to the hospitality industry. 

2. Trip.com Group Ltd. (TCOM): Online travel agency and one of the world's largest travel service providers. Founded in 1999, the company operates several travel fare aggregators and metasearch engines, including Trip.com, Skyscanner, and Ctrip. It offers services in multiple languages and supports a vast network of hotels, airlines, and attractions globally.

3. Kingsoft Cloud Holdings Ltd. (KC): A leading cloud service provider in China, offering a comprehensive range of services, including computing, storage, and networking solutions. The company serves various industries, such as gaming, video, and enterprise services, leveraging its robust infrastructure and technological expertise.

4. GDS Holdings Limited (GDS): Developer and operator of high-performance data centers in China. The company provides colocation, managed hosting, and cloud services to a diverse customer base, including internet companies, financial institutions, and enterprises. GDS is known for its strategically located facilities and mission to provide excellent services. 

5. Qifu Technology Inc. (QFIN): Formerly known as 360 Finance, this is a fintech platform in China that offers a range of consumer finance products. The company utilizes AI to offer personalized financial solutions and has established a significant presence in the Chinese consumer finance market.

These companies have benefited from the rebound of the travel and tourism industry in China, which was wiped out during the COVID19 pandemic amidst the draconian control measures imposed by the Chinese Communist Party (CCP). Now that COVID19 is well in the rear view mirror, travel is moving forward. In addition to travel, technology and finance are also strong in China and can be expected to continue growing there and worldwide in the coming years. 

Now you know it. 

www.creatix.one

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