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I'm writing to you today from a hotel room at the Cannes Lions Advertising Festival in France, where my esteemed colleague Rachel Akufo and I are gearing up to deliver a ton of on-air investor content for Yahoo Finance this week.
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Now, on the subject of technology, beaches, and loud music…
Over the past few weeks, there have been a number of headlines about Silicon Valley's growing support for former President Donald Trump, which has angered many on the left.
Prominent technology entrepreneur David Sachs hosted a fundraiser for Trump in San Francisco earlier this month, which reportedly raised millions of dollars for the presidential campaign.
Earlier, on May 30, Sean Maguire, a partner at Sequoia Capital, posted a lengthy message on X expressing his support for Trump.
“I donated $300,000 to Trump. I am prepared to lose friends. Here's why: In 2016 I was sold on the media hype and scared of Trump, so I donated to Hillary Clinton's campaign and voted for her. By 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 lifetime and I support Trump,” Maguire wrote.
Tesla (TSLA) CEO Elon Musk, who has been increasingly friendly towards President Trump, responded to the post by saying, “I think you're right.”
It's a somewhat interesting response, given that the Biden administration has done everything in its power to jump-start the EV industry, which is still seen as led by Musk and Tesla.
At first glance, it seems surprising that Silicon Valley elites are publicly supporting Trump after his recent legal troubles.
Joe Biden won California by about 30 points in the 2020 presidential election, marking the fourth consecutive time a Democratic candidate has received more than 60% of the vote in the state.
Secondly, the Biden administration has doubled down on investment in semiconductor manufacturing in the US, which has boosted sentiment about the future of the tech industry and added further bullish momentum to stocks.
And finally, the stock market continues to break records under Biden, meaning Silicon Valley's wealthy just got even richer.
But in the end, this tap from Trump may not come as a surprise to anyone.
These are forward-thinking people who are thinking about how to protect their enormous wealth (which, as this new data from San Jose State University shows, is enormous), their businesses, and their investments.
Many of them expect tighter regulation under a Democratic president, especially as AI advances rapidly and puts jobs at risk.
It's not my place to say whether they're right or wrong, I just want to let you know what some of the people I'm talking to are thinking right now.
Take Max Levchin, CEO of Affirm (AFRM), a level-headed veteran tech entrepreneur who moved to the US from Ukraine as a teenager.
He has long avoided publicly commenting on politics, but on this week's Opening Bid podcast (listen here), he raised a valid point that may reflect the sentiment of many in Silicon Valley.
“I pride myself on being apolitical, for very good reasons, and one of the things I learned pretty early on at Affirm is that we have something that appeals to both parties,” Levchin said. “San Francisco leans left of the left and left of the center, but we make products that people who wear MAGA hats use.”
Levchin added that he never hosts political fundraisers at his home.
But we expect other Silicon Valley companies will do the same, because it seems like a good business strategy for preserving wealth.
Brian Sozzi Editor-in-Chief of Yahoo Finance. Also,Starting BidPodcast. Follow Sozzi on Twitter/X Brian Sozzi and LinkedInHave a tip on a deal, merger, activist situation, etc.? Email brian.sozzi@yahoofinance.com. Are you a CEO and would like to appear on Yahoo Finance Live? Email Brian Sozzi.
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