DJT stock extends gains after shares surge to highest level since July on bets Trump will win US election
10/23/2024 19:25
Trump Media & Technology Group stock hit its highest level since July, adding to its recent rally.
Trump Media & Technology Group stock (DJT) extended gains on Wednesday, rising another 2% in premarket trading as investors bet on former President Donald Trump's improved odds of winning the November election in less than two weeks.
The moves come after the stock hit its highest level since July on Tuesday, with shares closing up nearly 10%.
Shares in the company, the home of the Republican nominee's social media platform Truth Social, have seen a recent surge as both domestic and overseas betting markets shift in favor of a Trump victory, with prediction sites like Polymarket, PredictIt, and Kalshi all showing Trump's presidential chances ahead of those of Democratic nominee and current Vice President Kamala Harris.
National polls, however, show both candidates in an incredibly tight race, especially in key battleground states like Pennsylvania and Michigan, which are likely to decide the fate of the election.
The recovery in shares comes after the stock traded at its lowest level since the company's debut following the expiration of its highly publicized lockup period last month. Shares had also been under pressure, as previous polling around early September saw Harris edging slightly ahead of the former president.
Trump's recent campaign momentum, which just included a stop at a local Pennsylvania McDonald's, follows an appearance by Elon Musk at his rally in Butler, Pa., earlier this month. It was the same location where the former president survived an assassination attempt in July.
Tech billionaire Musk, who serves as the CEO of Tesla (TSLA) and SpaceX and also owns social media platform X (formerly Twitter), has been outspoken about his support of Trump ahead of next month's election. Trump has even said he would consider a Cabinet position for Musk but that the businessman likely would not be able to serve "with all the things he's got going on."
At the rally, Musk told the crowd that Trump is the only candidate who can "preserve democracy in America," adding this will be "the last election" if Trump does not win.
Meanwhile, Harris has recently embarked on a flurry of media appearances in which she was pressed on how she would fund some of her proposals surrounding the economy and immigration.
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter, now X, following the Jan. 6, 2021, Capitol riots. Trump has since been reinstated on those platforms. He officially returned to X in mid-August after about a year's hiatus.
But as Truth Social attempts to take on the social media incumbents, the fundamentals of the company have long been in question.
In August, DJT reported second quarter results that revealed a net loss of $16.4 million, about half of which was tied to expenses related to the company's SPAC deal. The company also reported revenue of just under $837,000 for the quarter ending June 30, a 30% year-over-year drop.
Earlier this month, the company revealed that its COO had stepped down in September.
Trump maintains a roughly 60% interest in DJT. At current levels of above $33 a share, Trump Media boasts a market cap of about $6.7 billion, giving the former president a stake worth around $4 billion. Right after the company's public debut, Trump's stake was worth just over $4.5 billion.
Trump Media went public on the Nasdaq in late March after merging with special purpose acquisition company Digital World Acquisition Corp. But the stock has been on a bumpy ride since, with shares oscillating between highs and lows as the moves have typically been tied to a volatile news cycle.
Over the past six months, the stock has been off around 8% — a massive improvement on the heels of the rally after shares hit their lowest point last month.
Stakeholders, including the former president, were subject to a six-month lockup period before being able to sell or transfer shares. That lockup period expired on Sept. 19, although Trump said at the time that he would not sell his stake.
“I have absolutely no intention of selling,” the former president told reporters at a press conference prior to the lockup period expiration. “I love it. I use it as a method of getting out my word."
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].
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