World Stock Watch

In just four weeks, the United States will head to the polls to decide the nation’s trajectory for the next four years. While not every piece of legislation emanating from Washington, D.C. has a direct impact on the stock market, the economic policies implemented by the incoming administration will undoubtedly shape the landscape for corporate America. Democratic presidential nominee Kamala Harris has proposed a range of sweeping reforms aimed at reducing food and drug costs, expanding tax credits for middle-class families, and decreasing the federal deficit by increasing the corporate tax rate by 33%. While some businesses may thrive under a Harris administration, others may struggle to adapt.

Three influential stocks that could potentially plummet if Harris wins in November are Meta Platforms, Novo Nordisk, and Apple. Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, may face increased scrutiny due to Harris’s previous comments suggesting that the company should be broken up and regulated as a utility. Furthermore, a higher corporate tax rate could expose the widening losses in its Reality Labs segment, which focuses on augmented/virtual reality devices and metaverse ambitions.

Novo Nordisk, a Danish pharmaceutical company, has seen significant success with its GLP-1 drugs, Ozempic and Wegovy. However, Harris’s push to lower prescription drug costs could impact the company’s ability to maintain its high prices for these treatments. With Ozempic driving future earnings growth and supporting the company’s high earnings multiple, any uncertainty surrounding domestic drug pricing could halt Novo Nordisk’s upward momentum.

Apple, the largest publicly traded company by market cap, may also struggle if Harris wins. A higher corporate tax rate could reduce the company’s ability to fund share buybacks, which have been instrumental in increasing its earnings per share. Additionally, Harris’s proposal to tax unrealized capital gains could impact Apple’s wealthiest shareholders, potentially leading to a decline in the company’s stock price.