Former President Trump’s Media Empire Sees Surge in Value Amidst Election Frenzy
In a dramatic turn of events, shares of Trump Media & Technology Group (DJT) have skyrocketed by 13% on Tuesday, building upon Monday’s 10% gain. The sudden surge is attributed to investors’ reactions to recent media appearances by Democratic nominee and current Vice President Kamala Harris, as well as a surprise endorsement from tech mogul Elon Musk at a Trump rally in Pennsylvania over the weekend.
Musk, CEO of Tesla and SpaceX, has been vocal about his support for Trump, stating that the former president is the only candidate who can “preserve democracy in America.” Trump has even hinted at considering Musk for a Cabinet position, although Musk’s numerous commitments might make it difficult for him to serve.
Meanwhile, Harris has been making the rounds on popular media outlets, including a podcast appearance on “Call Her Daddy” and a sit-down interview with CBS’ “60 Minutes.” During the CBS interview, Harris defended her economic and immigration proposals, but faced scrutiny over funding for these initiatives. Notably, Trump backed out of a scheduled interview with the program last week.
As a result of the recent gains, Trump Media’s market capitalization has swelled to approximately $4.2 billion, with Trump’s 60% stake valued at around $2.5 billion. This marks a significant increase from the company’s public debut in March, when Trump’s stake was worth around $4.5 billion.
Despite the recent upswing, Trump Media’s stock has experienced a turbulent ride since its IPO, with shares fluctuating in response to a volatile news cycle. Last month, the stock hit its lowest point since the company’s debut, following the expiration of its lockup period. However, Trump has assured investors that he has no intention of selling his stake, citing his desire to use the platform to disseminate his message.
The company’s fundamentals have long been a subject of concern, with Trump Media reporting a net loss of $16.4 million in its second-quarter results. Revenue for the quarter ending June 30 also plummeted by 30% year-over-year. Furthermore, the company’s COO stepped down in September, raising questions about its leadership and direction.
As the election approaches, investors will be closely watching Trump Media’s performance, as well as the unfolding drama between Trump and Harris. One thing is certain – the stakes have never been higher for Trump’s media empire.
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