Trump Media and Technology Group stock (DJT) closed in afternoon trading on Wednesday as investors bet on former President Donald Trump’s chances of winning the November election in two weeks. The price rose by about 5%, widening the range of increase.
The move comes after the stock hit its highest since July on Tuesday, with shares closing up nearly 10%.
Other Trump-linked stocks also moved in tandem with DJT, with mobile ad software company Punware (PHUN), which has ties to the former president, gaining about 15% on Wednesday after rising more than 40% in the previous session.
Conservative-leaning video platform Rumble (RUM) was an early riser, rising as much as 8% on Wednesday. However, by the afternoon, the stock had lost its gains, with shares down 4%.
Shares of the company that operates Truth Social, the Republican candidate’s social media platform, have soared recently as domestic and international betting markets shift in favor of Trump’s victory, and shares of Polymarket, PredictIt, Calci and others have soared recently. All prediction sites are pointing to Trump winning. His presidential chances are ahead of Democratic candidate and current Vice President Kamala Harris.
But national polls show both candidates are running incredibly close races, especially in key battleground states like Pennsylvania and Michigan, which will likely decide the fate of the election.
The stock price recovery comes after the stock traded at its lowest level since the company’s debut following the end of a much-touted lock-up period last month. Stocks were also under pressure, as previous polls in early September showed Harris with a slight lead over the former president.
President Trump’s latest campaign boost comes on the heels of Elon Musk’s appearance at a rally in Butler, Pennsylvania, earlier this month, and a stop at a McDonald’s in his home state of Pennsylvania. It was the same location where the former president survived an assassination attempt in July.
Musk, a tech billionaire who is CEO of Tesla (TSLA) and SpaceX and owner of social media platform X (formerly Twitter), has turned to Trump ahead of next month’s election. He has openly expressed his support for the President Trump has said he would consider adding Musk to his Cabinet, but the businessman even said he would not be able to do so “because of everything going on.”
Musk told the crowd at the rally that Trump is the only candidate who can “defend American democracy,” adding that if Trump doesn’t win, this will be “the last election.”
Meanwhile, Ms. Harris has begun a spate of recent media appearances, facing pressure to decide how to fund her proposals on the economy and immigration.
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Republican presidential candidate and former President Donald Trump at a McDonald’s restaurant in Feasterville-Trevose, Pennsylvania, on October 20, 2024 (Win McNamee/Getty Images) · Win McNamee via Getty Images
Trump founded Truth Social after being banned from major social media apps such as Facebook (META) and Twitter (now X) following the January 6, 2021, Capitol riot. Trump has since returned to those platforms. He officially returned to X in mid-August after a hiatus of about a year.
But as Truth Social seeks to challenge the social media establishment, its fundamentals have long been questioned.
DJT’s second-quarter results reported in August revealed a net loss of $16.4 million, about half of which was related to costs associated with the company’s SPAC transaction. The company also reported revenue for the quarter that ended June 30 of just under $837,000, down 30% from a year ago.
Earlier this month, the company revealed that its COO resigned in September.
Trump maintains a roughly 60% interest in DJT. At its current price of more than $35 per share, Trump Media would have a market capitalization of about $7.1 billion, and the former president’s stock holdings would be worth about $4.3 billion. Shortly after the company’s public debut, Trump’s stake was valued at just over $4.5 billion.
Democratic presidential candidate Vice President Kamala Harris speaks with reporters in front of City Hall at the Royal Oak Theater on Monday, October 21, 2024 in Royal Oak, Michigan. (AP Photo/Jacqueline Martin) · ASSOCIATED PRESS
Trump Media listed on the Nasdaq in late March after merging with special acquisition vehicle Digital World Acquisition Corporation. However, the stock has had a turbulent run since then, and this movement is usually associated with volatile conditions, causing the stock to oscillate between highs and lows. news cycle.
The stock price has fallen about 8% over the past six months, a significant improvement from the rally since the stock hit its lowest point last month.
Interested parties, including the former president, were subject to a six-month lock-up period before they could sell or transfer their shares. The lockup period expired on September 19, but President Trump said at the time that he would not sell his shares.
“I have no intention of selling,” the former president said at a press conference before the end of the lock-up period. “I love it. I use it as a way to get my words across.”
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canalEmail LinkedIn, alexandra.canal@yahoofinance.com.
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