This is not an easy week for the President. Trump has faced widespread backlash for his reluctance to condemn the rioting of alt-right protesters in Charlottesville, Virginia over the weekend. As business leaders left Trump’s Manufacturing Council in protest, the President decided to end the council altogether. On August 16, he sent this tweet:
But Trump is unlikely to forget the business leaders that left the council before he shut it down. And stocks that face the wrath of Trump may see share prices crashing. On August 16, for example, Donald Trump briefly wiped around $5.7bn off the valuation of e-commerce giant Amazon. Shares in AMZN dropped 1.2% after Trump tweeted that Amazon is ‘doing great damage to tax-paying retailers.’
So which companies could be next? Here are some business leaders that are unlikely to be in Trump’s good books right now:
1. Merck (NYSE: MRK): Ken Frazier of Merck Pharma- one of the largest pharmaceutical companies in the world- was one of the first to leave the council on Monday. His resignation was met with this Tweet from the President:
TipRanks shows the stock has a Moderate Buy analyst consensus rating (4 buy, 3 hold and 1 sell rating). The average analyst price target of $68 comes in at 8% above the current share price.
2. Intel (NASDAQ: INTC): CEO Brian Krzanich was the third business leader to quit the council on August 14. He made this statement on his departure:
I am not a politician. I am an engineer who has spent most of his career working in factories that manufacture the world’s most advanced devices. Yet, it is clear even to me that nearly every issue is now politicized to the point where significant progress is impossible. Promoting American manufacturing should not be a political issue.
The stock has a Moderate Buy analyst consensus rating based on 25 recent ratings. The $39 average analyst price target is a 9% upside from the current share price.
