Nancy Pelosi is betting on these eight stocks in 2022.
Members of Congress are currently allowed to buy and sell individual stocks as long as they disclose their trades within 45 days. In September, House Democrats released the Combating Financial Conflicts of Interest in Government Act that would ban members of Congress and their immediate families from trading individual stocks. However, that bill has stalled in the House amid criticism that the new proposed rules would actually decrease transparency. Democratic House Speaker Nancy Pelosi has attracted a large following of stock traders on social media platforms in recent years thanks to the strong returns both she and her husband, financier Paul Pelosi, have generated in the market. In fact, Pelosi’s stock-trading performance was reportedly the sixth best in Congress in 2021. Here are Nancy Pelosi’s eight most recent stock purchases.
Microsoft Corp. (ticker: MSFT)
Microsoft is one of the world’s largest professional software and cloud services providers. In May, Pelosi purchased 50 Microsoft call options with a $180 strike price expiring in June 2023. Since Pelosi disclosed her Microsoft purchase, the stock is down more than 13% as of Oct. 11. Microsoft recently reported fiscal fourth-quarter earnings and revenue that fell short of consensus analyst estimates. However, the company said its Intelligent Cloud segment revenue was up 20% from a year ago, while Azure and other cloud services revenue grew 40%. Microsoft also reported an impressive $16.7 billion in net income in the fourth quarter.
Apple Inc. (AAPL)
The iPhone maker is the most valuable public company in the U.S. stock market with a market capitalization of about $2.2 trillion. Pelosi has actively traded Apple throughout 2022. She first purchased 10,000 shares of Apple stock by exercising Apple call options back in January 2022. In May, Pelosi added to her Apple stake by buying 100 Apple call options with a strike price of $80 expiring in March 2023. Just days later, Pelosi disclosed an additional purchase of 50 Apple call options with an $80 strike price expiring in June 2023. In June, Pelosi sold 50 Apple call options with a $100 strike price prior to their June 17 expiration.
Tesla Inc. (TSLA)
Tesla is the largest U.S. electric vehicle maker with a market cap of about $680 billion. In March, Pelosi purchased 2,500 shares of Tesla by exercising 25 call options with a strike price of $500. Pelosi purchased those call options way back in December of 2020. Between the time the purchase was disclosed and the time she exercised the options, Tesla’s share price climbed 41.4%. So far, Pelosi hasn’t done as well with her Tesla stock as she did with the Tesla call options. Tesla shares are down about 25% since she exercised her options.
AllianceBernstein Holding LP (AB)
AllianceBernstein is a leading investment manager. Pelosi purchased 10,000 shares of AllianceBernstein in January 2022. In July, the company reported a 9.8% drop in revenue, a 32.1% drop in operating income and a 4.7% drop in average assets under management in the second quarter. AllianceBernstein blamed its poor numbers on the difficult environment, including accelerating inflation, rising interest rates and geopolitical uncertainty in the market. Despite the lackluster numbers, Pelosi still benefits from AllianceBernstein’s 11.4% dividend. The stock has generated a loss of about 23% since Pelosi disclosed her purchase in January.
Walt Disney Co. (DIS)
Walt Disney is a diversified media and entertainment company that operates theme parks, movie and television studios, cruise lines and other businesses. Disney also runs the Disney+, ESPN+ and Hulu streaming services. Pelosi purchased 10,000 shares of Disney in January 2022 by exercising 100 Disney call options with a strike price of $100. Pelosi purchased those 100 call options back in December 2020. In December 2021, Pelosi also purchased 50 Disney call options with a $210 strike price expiring in January 2023. Since Pelosi exercised her Disney call options in January, the stock is down about 32%.
PayPal Holdings Inc. (PYPL)
PayPal is a digital and mobile payments platform. In January 2022, Pelosi exercised 50 call options with a strike price of $100 to purchase 5,000 shares of PayPal. Pelosi had previously disclosed two large purchases of at least $750,000 in PayPal stock in June 2020. For the first half of 2022, Pelosi’s PayPal investment performed terribly. The stock was down more than 50% and was one of the worst performers in the entire S&P 500. However, PayPal shares jumped more than 13% on Aug. 3, 2022, after activist investor Elliott Management disclosed a $2 billion stake in the company.
American Express Co. (AXP)
American Express is a financial services company that specializes in credit cards and travel-related services. In January 2022, Pelosi purchased 5,000 shares of American Express by exercising 50 call options with an $80 strike price. Pelosi had also previously purchased at least $100,000 in AXP stock back in June 2020. American Express shares are up 50% since Pelosi made her large purchase in 2020, but they are down about 13% since she added to her stake by exercising her call options in January 2022. Pelosi is in good company in American Express, given it’s also one of the largest holdings of billionaire investing legend Warren Buffett.
Salesforce Inc. (CRM)
Salesforce is a market leader in cloud-based customer relationship management software and services. In December 2021, Pelosi purchased 130 Salesforce call options with a $210 strike price expiring on Jan. 20, 2023. These options are now only about three months from expiration, and the stock is trading at around $156 — well below the strike price. Salesforce shares are down about 42% since the purchase was disclosed, and Pelosi has likely taken a big hit on the position. Salesforce reported solid 21.7% year-over-year revenue growth in its fiscal second quarter, but net income dropped 87% from a year ago.
8 top Nancy Pelosi stocks to buy:
Microsoft Corp. (MSFT) Apple Inc. (AAPL) Tesla Inc. (TSLA) AllianceBernstein Holding LP (AB) Walt Disney Co. (DIS) PayPal Holdings Inc. (PYPL) American Express Co. (AXP) Salesforce Inc. (CRM)
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8 Top Nancy Pelosi Stocks to Buy originally appeared on usnews.com
Update 10/12/22: This story was published at an earlier date and has been updated with new information.
