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I come to you today from a hotel room at the Cannes Lions advertising festival in France, preparing to release a ton of live, investor-friendly content for Yahoo Finance this week, alongside esteemed colleague Rachelle Akuffo.
We will be talking to the companies in attendance, including Spotify (SPOT), Pinterest (PINS), Meta (META) and Google (GOOG).
Follow the action on Yahoo Finance here.
Now, while I’m talking about technology, the beach and loud music…
There have been a lot of headlines in recent weeks in Silicon Valley, throwing more and more support at former President Donald Trump (which upset many on the left).
Famed tech entrepreneur David Sacks launched a fundraiser for Trump in San Francisco earlier this month that reportedly brought in millions for his presidential campaign.
Prior to that, on May 30, Sequoia Capital partner Shaun Maguire opened a long publish on the X, expressing support for Trump.
“I just donated $300,000 to Trump. I’m prepared to lose friends. Here’s why. In 2016, I had drunk the media Kool-Aid and was scared to death of Trump. As such, I donated to Hilary Clinton’s campaign and I voted for her. In 2020, I was disillusioned and didn’t vote – I didn’t like either option. Now, in 2024, I believe this is one of the most important elections of my life and I am supporting Trump.”
Tesla (TSLA) CEO Elon Musk – who is increasingly sympathetic to Trump – responded to the post by saying, “I think you’re right.”
A somewhat interesting response, considering that the Biden administration has strived to turbocharge the electric vehicle industry – of which Musk and Tesla are still seen as leaders.
At first glance, Silicon Valley elites’ public support for Trump after his latest bout of legal troubles seems surprising.
Joe Biden won California in the 2020 presidential election by about 30 points. This marked the fourth consecutive election in which the Democratic candidate exceeded 60% of the vote in the state.
Then the Biden administration doubled investment in US semiconductor manufacturing. This has lifted sentiment about the future of the tech industry and has undoubtedly added another layer of optimism to its shares.
And last but not least, the stock market continues to break records under Biden. Meaning: Silicon Valley’s rich just got richer!
But when all is said and done, perhaps this pat on the back from Trump shouldn’t surprise anyone.
These are forward-thinkers who think about the future, considering how to protect their immense wealth (and it is, indeed, immense, as this new data of San Jose State University programs), its businesses and its investments.
Many of them predict stricter regulation under a Democratic president, especially as AI accelerates and puts jobs at risk.
It is not for me to say whether they are right or wrong; I just want to share how some of these people I talk to are thinking right now.
Take the example of veteran technology entrepreneur Max Levchin, CEO of Affirm (AFRM), who came to the US from Ukraine when he was a teenager.
For a long time he avoided making public statements about politics, but he raised a fair point in Opening bid podcast this week (listen here) which may reflect the sentiment of many in the Valley.
“I’m proud to stay out of politics for good reasons. I think one of the things I learned early on at Affirm is that we appeal to both sides of the aisle,” Levchin said. “San Francisco leans left and left, left of center — and yet you’re building products that will be used by someone with a MAGA hat.”
Levchin adds that he will never hold political fundraisers at his home.
However, others in the Valley are expected to do so as it appears to be a good business tactic to protect wealth.
Brian Sozzi is the executive editor of Yahoo Finance. He is also the host of “Opening bid“podcast. Follow Sozzi on Twitter/X @BrianSozzi and so on LinkedIn. Tips on business, mergers, activist situations or anything else? Email brian.sozzi@yahoofinance.com. Are you a CEO and want to participate in Yahoo Finance Live? Email Brian Sozzi.
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