Nancy Pelosi is betting on these eight stocks.
In September 2022, former House Speaker Nancy Pelosi said the Senate would soon vote on a bill banning members of Congress from trading individual stocks. In 2023, however, Democrats no longer control the House, Pelosi is no longer House Speaker and there has yet to be a vote on congressional stock trading. Members of Congress are currently allowed to buy and sell individual stocks as long as they disclose their trades within 45 days. 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 on certain trades. Here are eight of Nancy Pelosi’s most-recent stock purchases.
Alphabet is the parent company of Google and YouTube, and is a global leader in online advertising. In September 2022, Pelosi purchased 20,000 shares of Alphabet by exercising 200 call options. Pelosi had purchased those call options back in December 2021. In the period between the options purchase and when she exercised them, Alphabet’s share price dropped 27.4%. So far, Pelosi hasn’t had much luck with her Alphabet stock. The company reported a third-quarter earnings and revenue miss in October, and the stock is down 14.9% between when Pelosi exercised her options and market close on Jan. 6.
Microsoft Corp. (MSFT)
Microsoft is one of the world’s largest professional software and cloud services providers. In May 2022, 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 13.4%. In October, Microsoft reported fiscal first-quarter earnings and revenue that exceeded consensus analyst estimates, but its cloud revenue and quarterly guidance fell short of Wall Street’s expectations. Microsoft’s net income also dropped 14% from the previous year to $17.6 billion in the quarter, but the company said it plans to moderate operating expense growth in 2023.
Apple Inc. (AAPL)
The iPhone maker is the most valuable public company in the U.S. market with a market capitalization of about $2 trillion. Pelosi 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 most valuable U.S. electric vehicle maker with a market cap of $385 billion. In March, Pelosi purchased 2,500 shares of Tesla by exercising 25 call options with a strike price of $500. Pelosi had purchased those call options back in December 2020. In the period between when the purchase was disclosed and when she exercised the options, Tesla’s share price climbed 36.1%. So far, Pelosi hasn’t done as well with her Tesla stock as she did with the Tesla call options. Tesla shares are down 61.1% 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 October, the company reported a 1.6% increase in revenue, an 11.6% drop in operating income, an 18.8% drop in earnings per share and a 5% drop in average assets under management in the third quarter. AllianceBernstein blamed its poor numbers on the difficult environment, including accelerating inflation and rising interest rates. Despite the lackluster numbers, Pelosi still benefits from AllianceBernstein’s 10.3% dividend. The stock has declined by 13%, including dividends, since Pelosi’s January purchase.
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 $130 strike price expiring in September 2022, which she let expire. Since Pelosi exercised her Disney call options in January 2022, the stock is down 31.6%.
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. Pelosi’s PayPal investment performed terribly in 2022. In fact, PayPal was one of the worst performers in the entire S&P 500 last year, declining 62.2%. PayPal has regained some bullish momentum in recent weeks, but it’s still down 53.2% since Pelosi exercised her PayPal call options in January 2022.
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 55.2% since Pelosi made her large purchase in 2020, but they are down 5.4% since she added to her stake by exercising her call options in January 2022. Pelosi is in good company in American Express, as it’s also one of the largest holdings of billionaire investing legend Warren Buffett.
8 top Nancy Pelosi stocks to buy:
— Alphabet Inc. (GOOG, GOOGL)
— 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)
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Update 01/09/23: This story was published at an earlier date and has been updated with new information.