| Key Points: – DJT shares soar on investor optimism around Trump’s 2024 election chances. – Rally at Madison Square Garden and support from figures like Elon Musk bolster stock. – While stock rises, Trump Media’s underlying financial challenges could impact long-term performance. |
Donald Trump’s Trump Media & Technology Group (DJT) stock has seen a surge following his rally at Madison Square Garden, as market excitement and the election’s proximity drive interest. Over the weekend, DJT shares rose by as much as 20%, boosted by investor anticipation surrounding the former president’s election chances. The stock now trades at its highest point since July, marking a substantial 235% increase from September’s lows.
This surge wasn’t limited to DJT stock alone. Related companies like Phunware (PHUN), which provides mobile advertising services connected to Trump, and conservative video platform Rumble (RUM) also experienced gains of over 3% and 6%, respectively. Market analysts suggest that DJT’s stock performance hinges largely on the election, making it highly volatile in the face of public opinion shifts.
Investors betting on DJT stock see the upcoming election as a major catalyst. If Trump wins, the stock is likely to benefit from positive sentiment and speculation around Truth Social, his social media platform under Trump Media & Technology. Trump’s recent rally, while controversial, has further stoked investor sentiment as prediction markets shift more favorably towards his presidential bid. Betting markets, such as PredictIt and Kalshi, have shown Trump gaining ground against Democratic nominee Kamala Harris, adding to the optimism fueling DJT’s stock momentum.
However, experts warn of potential volatility. With a highly polarized market reaction to Trump’s campaign, a loss in the election could drive DJT’s stock down dramatically. Investment fund CEO Matthew Tuttle, who currently holds put options on DJT stock, predicts that a Trump loss could send the stock’s value tumbling to zero. Analysts advise caution, citing a “buy the rumor, sell the fact” approach for DJT stock tied to the November results.
The uptick in DJT’s value comes after a volatile period that included a drop in share price following the end of a lockup period for some early investors. Trump’s presence on Truth Social, which he launched post-2021 after being removed from traditional platforms, has continued to fuel speculation on the stock. Elon Musk, a known supporter of Trump, attended Trump’s rally alongside other influential figures, creating a spectacle that resonated with supporters and media alike. Trump and Musk’s association has generated media buzz, with Trump even suggesting a potential cabinet position for Musk, though the Tesla CEO’s involvement remains unofficial.
Despite recent stock performance, Trump Media’s fundamentals raise concerns. For the quarter ending June 30, DJT reported a $16.4 million net loss, with revenue down 30% year-over-year to $837,000. Half of these losses were linked to expenses associated with the company’s SPAC (Special Purpose Acquisition Company) deal. DJT also disclosed earlier in the month that its COO had stepped down in September, indicating potential instability within its management team.
As Trump Media gains attention in the market, its financial landscape remains a key factor for investors who are looking beyond the election.