Stocks bought by Politicians this week

Hello Seven Lakers,

below a summary of relevant events happened in the stock market in the last week

📈 1/ Stocks and sectors bought by US politicians last week

This week, the trading activity at Capitol Hill was substantial, with 61 transactions taking place

Semiconductors and Software were the most invested sectors

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🏦 2/ US Politicians potential insider trading: NVIDIA part of government AI initiative, senator invested right before

Nvidia Corp (NVDA:US) recently joined the elite club of U.S. companies with a $1 trillion market value, reflecting the chipmaker's significant role in the AI boom.

Nvidia's dominance in graphics processing units (GPUs) for AI applications, including ChatGPT, has positioned it as a key player in the market.

In January 2024, the US National Science Foundation launched the NAIRR, a collaborative effort with 10 federal agencies, 25 private sector organizations, and nonprofits to research AI in a progressive move.

Nvidia is one of the program's major contributors, offering $30 million worth of cloud resources.

The program also involves Congress passing laws and distributing funds to enhance AI research and accessibility.

Unsurprisingly, the chain sees many Congress members investing in tech and AI stocks. One notable investment was by Sen. Markwayne Mullin who bought up to 104 NVDA shares on January 2.

Since then, the stock has surged by 27.73%. Other semiconductor stocks that Sen. Mullin reported investments in include Advanced Micro Devices Inc, Applied Materials Inc, and Lam Research Corp.

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📄 3/ Interesting stock market stories

STORY #1: Tesla faces challenges

Electric Powered Vehicles (EVs), notably Tesla (TSLA:US), have gained attention in the automotive sector.

Tesla recently recalled almost 200,000 Model S, X, and Y vehicles in the U.S. due to a rearview software glitch reported by the National Highway Traffic Safety Administration (NHTSA).

The recall aims to address a software malfunction affecting driver visibility during reversing, posing a risk of collisions.

Tesla faced investor concerns despite a profitable earnings call, with earnings falling short of analysts' expectations.

Daniel Ives of Wedbush Securities proposed a 10-point plan, including a $10B buyback, halting price cuts, and suspending Elon Musk's stock sales, in response to the investor concerns.

Congressman Ro Khanna divested $1,000 to $15,000 worth of TSLA shares in November, amidst Tesla's stock price declining by over 24% year-to-date.

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STORY #2: Politicians making money while Oracle moves to AI

Oracle Corp (ORCL:US) is an American company providing global products and services for enterprise information technology, offering cloud-based solutions and application licenses.

Rep. Thomas Kean Jr. bought up to 150 ORCL shares on Dec 14, 2023, valued between $1,001 and $15,000.

On January 29, ORCL stock closed at $113.75, marking its second consecutive day of losses, but it had a +30.22% climb in the past year.

Since Kean's purchase, ORCL shares have surged by almost +13.40%.

Oracle introduced the Oracle Cloud Infrastructure Generative AI (OCI GenAI) service in early January, targeting applications with large language models for enterprise use.

Oracle anticipates rapid growth in cloud infrastructure revenue, potentially doubling every two years, with GPU's cluster technology attracting leading AI start-ups like Adept AI, Cohere, and Elon Musk's xAI.

Other Congress members who invested in ORCL in 2023 include Representatives Ro Khanna, Greg Stanton, Michael Guest, and Josh Gottheimer. Gottheimer, Khanna, and Stanton also sold ORCL not long after purchasing stakes.

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STORY #3: The NYCB fallout caused banking stocks sell off

New York Community Bancorp Inc. (NYCB) has experienced a significant 37% decline in stock value due to a surprise quarterly loss and a substantial cut in dividends, triggered by its strategic move to acquire assets from Signature Bank last year.

Politicians have been observed selling off stocks in the finance sector, raising concerns about the relationship between political decisions and personal financial interests.

Recent politician trades in the banking sector include Rep. Blake Moore selling Bank of America Corp (BAC) shares on Jan 19, 2024, Rep. Jared Moskowitz selling Seacoast Banking Corp of Florida (SBCF) shares on Dec 14, 2023, and Sen. Jerry Moran selling shares of The Bank of New York Mellon Corp (BK), Bank of America Corp, and U.S. Bancorp (USB) on Dec 14, 2023.

Notably, all of the mentioned stocks are down, possibly reflecting the ripple effect of NYCB's decline.

The question arises whether these stock sales indicate insider knowledge or are merely strategic portfolio adjustments in anticipation of market volatility.

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📄 4/ Political Trading Bot

As you may remember, we have a trading bot that buys the same stocks as politicians

The bot is offered by the SEC registered broker QB, which will perform the trades. We will just provide them with the necessary data to execute

This means that every time politicians buy sizable amount of stocks, the bot buys those stocks as well

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• We launched in May 2022 and the performance was +24% return

• Performance since April 2020 was +237% return