Stock manipulation under the protection of the law: The president recommended, and the stock jumped by 100%

Infrastructure and computing giant Dell will publish its financial reports for the second quarter of the year this evening (Tuesday), after the close of trading. Analysts estimate that the company's revenue will stand at 45 billion dollars — a growth of almost 50% compared to the same period last year. Regarding earnings per share, the estimate is that the growth will be even greater and will reach almost double that of the same period.

Dell's stock has captured a lot of attention in the last year due to the fact that the company serves as a central factor in AI infrastructure. The explanation is simple: if companies like Nvidia produce the "brain" — the artificial intelligence chips, the Dell company is the one that provides them with the "body and engine". In other words, Dell takes these powerful chips and builds around them the super-servers and complex storage systems that allow organizations and companies that want to run models themselves to do so, without relying on cloud giants.

Public support from the President

But what stood out most of all was the support, not to say public recommendation, of President Donald Trump for the company. At an event held last May, the President said:

"Go and buy Dell, they are great".

Following these words, the company's stock jumped by almost 14% the day after. In July, at an event at the White House marking the launch of the American savings plan for every child, Trump repeated his recommendation to buy Dell and again boosted the stock by almost 5%.

The conflict is that the President himself held Dell shares even at the time of the statement. The White House did claim that the President has no direct control over trading decisions, that the assets are held in a trust managed by his children, and that "the President acts only for the benefit of the American public". However, many ethics experts doubt this, since Trump does not hold a true blind trust but a regular stock portfolio, so that in the bottom line he is still exposed to profits and losses from the stocks.

Fantastic financial data

Either way, the company's stock has risen exactly 100% since Trump's recommendation in May until today. However, it is important to note that at the end of May a phenomenal financial report was also published that sent the stock soaring, but there is no doubt that the President's spirit helped quite a bit. Since the beginning of the year, the stock has risen by 250%, and in the last five years it has recorded a meteoric jump of more than 800%. Today, the company's value stands at about 300 billion dollars, with a price-to-earnings ratio of 36.