Trump Media and Technology Group stock (DJT) on Tuesday looked set to extend its five-week rally as investors bet on an improved chance of Donald Trump winning the November presidential election. The stock rose another 11% in pre-market trading.
The stock closed more than 21% higher on Monday following the former president and Republican candidate’s highly criticized rally held at Manhattan’s Madison Square Garden (MSG) over the weekend. At current levels, the stock is trading at its highest since early June, and the stock is up about 240% from its September lows.
Other Trump-related stocks also moved in tandem with DJT. Conservative-leaning video platform Rumble (RUM) rose nearly 15% on Monday, but was up about 6% early Tuesday. However, mobile advertising software company Punware (PHUN) fell 11% in the market after erasing Monday’s intraday gains to close flat.
Trump’s rally sparked a backlash from both sides of the political spectrum after comedian Tony Hinchcliffe made inflammatory jokes about Latinos and the black community, and anti-immigrant comments also dominated headlines. .
The soaring price of DJT stock is unlikely to continue in the short term. One active investor warned that DJT stock could drop to $0 if Trump loses next week’s election.
“This is a 1/2 bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, said Monday on Yahoo Finance’s Catalyst show.
Mr. Tuttle, who currently owns a put option on the stock, said the stock’s price movement depends on a trading strategy of “buying rumors and selling facts.”
“The day after he wins, this is going to collapse,” he surmised. “If he loses, I think it will be zero.”
Shares of the company that runs Truth Social, the Republican candidate’s social media platform, have risen recently as betting markets at home and abroad shift in favor of Trump’s victory, leading to a rise in shares of Polymarket, PredictIt, All prediction sites such as Calci 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.
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Former Republican presidential candidate Donald Trump speaks at a campaign rally at Madison Square Garden on Sunday, October 27, 2024 in New York. (AP Photo/Evan Vucci) · ASSOCIATED PRESS
President Trump’s recent campaign surge, including a recent stop at a McDonald’s in his hometown of Pennsylvania, follows Elon Musk’s appearance at a rally in Butler, Pennsylvania, earlier this month. 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 also the owner of social media platform He has openly expressed his support. President Trump has said he would consider adding Musk to his Cabinet, but the businessman even said he wouldn’t be able to do so “because of everything going on.”
Musk attended Sunday night’s MSG event along with UFC President Dana White, former professional wrestler Hulk Hogan, and House Speaker Mike Johnson.
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. Her most recent rally was held in Houston, Texas on Friday.
Democratic presidential candidate Vice President Kamala Harris speaks at a community rally at the Alan Horwitz “Sixth Man” Center on Sunday, October 27, 2024 in Philadelphia. (AP Photo/Susan Walsh) · ASSOCIATED PRESS
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 in question.
DJT’s second-quarter results reported in August revealed a net loss of $16.4 million, about half of which was related to costs related to 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 earlier.
Earlier this month, the company revealed that its COO had resigned in September.
Trump maintains a roughly 60% interest in DJT. At more than the current price of $47 per share, Trump Media would have a market capitalization of about $9.5 billion, and the former president’s stock holdings would be worth about $5.7 billion.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canalEmail LinkedIn, alexandra.canal@yahoofinance.com.
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