Thanks to a string of well-timed trades and general strong stock picks such as the Nvidia (NASDAQ: NVDA) options purchase, the former Speaker of the House, Nancy Pelosi has become one of the most prominent celebrity investors and made an estimated $1 million in the first trimester of 2024
Still, as demonstrated by several of Warren Buffett’s red years in the last half a century, no investor is always a winner and one of Nancy Pelosi’s latest big trades is, so far, deep in the red.
The strange timing of Nancy Pelosi’s Palo Alto investment
Back on February 26, Representative Pelosi disclosed two purchases of Palo Alto Networks (NASDAQ: PANW) call options worth between $500,000 and $1 million, and $100,000 to $250,000 respectively.
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Perhaps uncharacteristically, the first and bigger purchase was made on February 12, approximately one week before a massive stock market plunge on weak guidance published along with an otherwise strong earnings report.
The timing was also, arguably, not unlike other Pelosi purchases given that the investment in the cybersecurity company occurred near the time Congress was briefed on a major national security issue and near the time Palo Alto CEO expressed his hope for a new government contract.
The second and smaller investment took place after the 1-day collapse at PANW’s yearly lows on February 21.
How much is Nancy Pelosi down on the PANW bet?
While the expiration date is still far away in 2025 meaning that no losses have necessarily materialized, Nancy Pelosi might end up significantly in the red given the current trajectory of PANW stock.
Since the first trade was made, Palo Alto shares fell approximately 27%. On the other hand, the stock rose slightly – by about 2.5% – since the second one.
Still, given PANW’s overall recent trend, an ultimate loss on the investment appears likely, despite the initial bullish momentum the news of the Pelosi purchase lent to the stock.
Indeed, while Palo Alto rose 37.13% in the last 52 weeks, year-to-date (YTD), PANW shares are down 6.71%.
The more recent trend fuels further concerns since, despite recovering slightly after the late February crash, Palo Alto shares are again sinking. The last 30 days saw PANW fall 9.99% and the firm is down 7.21% on the weekly chart.
Palo Alto also closed the latest full trading day – April 3 – 1.41% in the red at $269.54. Palo Alto price today stands at $271.35, as the stock climbed 0.67% in the premarket by press time.
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