10 very hot growth stocks to profit from a Trump pump

Four more years of US President Trump's administration seeking to run the economy hot and grow its way out of debt via massive tax cuts and huge fiscal deficits paint an arguably bullish picture for growth shares.

Trump has no serious commitment to balance the budget other than DOGE, with fiscal deficits close to 7% of gross domestic product adding around $1 trillion to the US debt pile every 100 days or so. 

Last week, the US President even said he wants the US Federal Reserve to lower borrowing rates to 1% to match the construction billionaire's business philosophy of using debt and low rates to create growth. 

Looking ahead, any signal the market gets that a Trump puppet will get into the US Federal Reserve as chairperson is likely to have a dramatic impact on markets as they start to price in more cheap money.

Most of the US administration's other core policies, including those of US Treasury Secretary Scott Bessent, revolve around keeping short-end bond rates capped via lower overnight rates from the Fed, stablecoins to fund short-end treasury issues, and changes to bank regulations so they can hold more treasuries. 

All up, the plan to refinance debt at the short end at lower rates means we can also likely expect the yield curve to continue to steepen.

Last week, National Australia Bank pointed out that the spread between US 5-year and US 30-year treasuries - as a benchmark for steepening - has now widened to 103 basis points at its highest since 2021. That was the last time tech and growth stocks peaked after a massive bull run.

I'd caution this preceded the bust in 2022, but given it's obvious the plan is to run the economy hot via cheap rates and tax breaks, let's look at some growth favourites that I expect may go higher, even if they fall into the punt, social trading, or cheap money winner categories.

10 stocks to watch 

Circle (NYSE: CRCL) just posted a blowout initial public offer (IPO) as the stablecoin issuer's shares doubled from US$31 to US$69 on the 5 June offer date and fetched $US180.43 last week. 

A six bagger in just over three weeks means it's one of the hottest IPOs in Wall Street history, as traders price in its potential as a stablecoin issuer and facilitator. Stablecoins are lucrative and a great business model as issuers can earn yields on the assets they use to back them. The Trump admin is big on stablecoins and check out the GENIUS Act to learn more. 

Uber (NYSE: UBER) - needs no introduction and is turning into a rideshare and delivery giant with a potential moat alongside network effects. Its delivery business posted $US3.8 billion in revenue in the first quarter, versus $US6.5 billion from ride sharing. Free cash flow jumped 66% to US$2.25 billion to mean it trades on around 21 times annualised free cash flow at US$191 per share, with a growth trajectory. The market's worried Tesla pushes it out of the autonomous vehicle race, but I expect it gets bid higher if Tesla is yet to solve full autonomy. 

Coinbase (NASDAQ: COIN) - this is a bellwether for animal spirits in markets and the US administration's push to support digital tokens and willingness to trash the value of the dollar to manage its debt. Coinbase stock is up 37.4% this year, although roughly flat since it IPO'd at the peak of the last crypto and zero-interest rate policy mania in April 2021. 

Life360 (ASX: 360) - this is the fast growing family tracking smartphone app that is adding users and sales at scale. It now has a whopping 83.7 million monthly active users, so families can keep an eye on what their kids and partners are up to. The company last had cash on hand of $170 million, with potential to grow organically and into other verticals. However, I must say the valuation looks a little stretched at $31.43 per share. So I might give it a miss for now.  

Microstrategy (NASDAQ: MSTR) - this is another pure play bet on the bitcoin mania and power of social media or meme-based trading to produce new narratives and indefinite asset price bubbles. If we assume bitcoin is a bellwether for fiscal stupidity, it's also likely to move higher over the next four years. However, the strategy of its founder Michael Saylor is not that different to me raising money to bet on red at the casino's roulette table. It works great until it doesn't and is a faith-based gamble. 

BYD (SHE: 002594) - this is the hybrid electric vehicle business using new technologies and cheap labour to produce low-cost cars. Traditional hybrids are petrol engines with a battery and motor, whereas BYD hybrids have a small petrol motor charging the battery. It also has ultra-fast charging technology and long ranges as investors begin to price in a technological edge. Recently it started outselling Tesla for the first time. 

Crowdstrike (NASDAQ: CRWD) - I am kicking myself for missing the growth in cybersecurity stocks and it's hard to go past one of the world's leading online security players. Crowdstrike's growth rates are insane and this is a highly profitable business with best-in-class offerings.

ASML (AMS: ASML) - every global fund manager (and their grandmas) seem to be in this artificial intelligence play. ASML supplies semiconductor design technology for microchips and appears to be sitting in a growth sweet spot with a competitive advantage. A clue to its strong position is that net profit margins in the first quarter were sky high at 30.4% as it posted earnings per share of €6. The stock is off 28% in the last year and now trades on 28 times annualised earnings per share, which could be an opportunity.

MercadoLibre (NASDAQ: MELI) - is another stock I am furious about missing out on. I've watched it rise 10-fold since it first came onto my radar in 2017. It's an online retailing giant across South America and has expanded into payments and (no surprise) crypto. It's growing profits and sales fast, although the geographic risk is something to consider.

MongoDB (NASDAQ: MDB) this is a stock I used to own and regret still not owning. The company sells online or cloud-based databases that are used at the back of technology stacks for enterprises' online activities. It's a challenger to $US590 billion database giant Oracle and has grown extremely quickly over the past five years. The stock has come off recently to US$209, as it missed very high growth expectations.

As a footnote, many investors would rather put pins in their eyes than own some of these crypto and growth type stocks that rely on animal spirits and increased money supply being funnelled into speculative assets. 

This list should also be taken as a list of stocks I don't own, but ones I suspect will outperform in a general liquidity fuelled bull run or may outperform on the basis of strong competitive positions and profit growth.