Trump Media Stock Soars Amid Election Speculation
In a surprising turn of events, shares of Trump Media & Technology Group (DJT) surged another 11% in premarket trading on Tuesday, continuing a remarkable five-week rally. This surge comes as investors grow increasingly optimistic about former President Donald Trump’s chances in the upcoming November presidential election. On Monday alone, the stock closed up more than 21%, following Trump’s controversial rally at Madison Square Garden over the weekend, marking its highest trading level since early June and a staggering 240% increase from its September lows.
The excitement surrounding DJT isn’t happening in isolation. Other Trump-affiliated stocks are also riding the wave. Conservative video platform Rumble (RUM) saw a nearly 15% increase on Monday and was up about 6% in early Tuesday trading. However, not all Trump-related stocks are faring well; mobile advertising software company Phunware (PHUN) experienced an 11% drop in premarket trading after a flat close on Monday.
Trump’s rally, which drew criticism from both sides of the political spectrum, featured comedian Tony Hinchcliffe making inflammatory jokes about various communities, overshadowing the event’s intended message. This backlash, however, seems to have done little to dampen investor enthusiasm for DJT stock, which is viewed as a speculative bet on the election outcome.
Matthew Tuttle, CEO of Tuttle Capital Management, cautioned that the stock’s trajectory is highly dependent on the election results. "It’s a binary bet on the election," he stated, suggesting that if Trump loses, DJT shares could plummet to zero. Tuttle, who currently holds put options on the stock, believes that the market is operating on a "buy the rumor, sell the fact" strategy, indicating that a Trump victory might not sustain the current stock momentum.
As the election approaches, betting markets are increasingly favoring Trump over Democratic nominee Kamala Harris, with platforms like Polymarket and PredictIt showing a shift in predictions. However, national polls indicate a tight race, particularly in battleground states like Pennsylvania and Michigan, which could ultimately determine the election’s outcome.
The recent stock recovery follows a period of struggle for DJT, which had traded at its lowest levels since the company’s debut after a lockup period expired last month. The stock had faced pressure as early September polling showed Harris slightly ahead of Trump, raising concerns about the former president’s viability as a candidate.
Trump’s campaign has gained momentum recently, highlighted by a visit to a Pennsylvania McDonald’s and a rally that featured high-profile supporters, including tech billionaire Elon Musk. Musk’s vocal support for Trump has further energized the stock, with Trump even hinting at a potential Cabinet position for Musk should he win the election.
Despite the current optimism, the fundamentals of Trump Media remain questionable. The company reported a net loss of $16.4 million in its second-quarter results, with revenue dropping 30% year-over-year. Additionally, the recent departure of the company’s COO raises further concerns about its operational stability.
As the election draws near, DJT’s stock performance will likely remain volatile, reflecting the unpredictable nature of political outcomes. With Trump holding a 60% stake in the company, the stakes are high—not just for investors, but for the former president himself, whose financial future could hinge on the election results.
As we approach November, all eyes will be on the polls, the rallies, and, of course, the stock market, as investors navigate this turbulent political landscape.
