For those who aren’t living under a rock, we’re in an election year. That means investors looking for ways to play a shifting political landscape are often assessing opportunities in the stock market to benefit from short-term trends. One such stock that appears to be garnering outsized attention in this regard today is Phunware (NASDAQ:PHUN), with PHUN stock roughly doubling from yesterday’s close in early afternoon trading.
Much of this move has to do with Trump’s recent “trifecta” of wins in the Idaho, Michigan and Missouri caucuses. The former president is now much closer to clinching a GOP nomination, setting the stage for what most believe will be a rematch between the former president and current president, Joe Biden.
Let’s dive into why Phunware is surging in the manner it is today and what investors may want to watch when it comes to this company moving forward.
Why Is PHUN Stock Rocketing Higher Today?
It’s important to note that today’s move isn’t unusual for Phunware. Following Trump’s win in Iowa earlier this year, PHUN stock more than quadrupled in a single trading day. So, today’s move could be considered relatively muted compared to previous rallies in the Trump-linked stock.
The Trump campaign had previously worked with Phunware to develop software related to a phone app used for the former president’s campaign in the past. These ties have led some traders to view Phunware as a proxy, of sorts, for the Trump re-election campaign. Thus, any sort of bullish commentary around the former president drives increased interest in this stock.
Trump may also be benefiting from a Supreme Court ruling that just came through that Trump will be allowed on the ballot in Colorado. The justices struck down the state’s Supreme Court’s decision to ban Trump under the 14th Amendment’s Insurrection disqualification section.
For those looking to continue to trade PHUN stock as a proxy of election sentiment moving forward, it should be noted that PHUN stock did dip significantly following January’s move, post Iowa results. Thus, today’s rally should be kept in context.
But for now, Phunware clearly has some strong momentum, and it appears this stock will remain a focal point for certain investors for the time being.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
