Trump’s Social Media Venture Sees Resurgence in Stock Price
Shares of Trump Media & Technology Group (DJT) have surged to their highest level since July, with a 10% increase on Tuesday. This sudden uptick is attributed to investors’ growing confidence in former President Donald Trump’s chances of winning the November election.
Betting Markets Shift in Trump’s Favor
Both domestic and overseas betting markets are now favoring a Trump victory, with prediction sites like Polymarket, PredictIt, and Kalshi all showing Trump ahead of Democratic nominee Kamala Harris. National polls, however, indicate a tight race, particularly in key battleground states like Pennsylvania and Michigan.
Recovery from Lockup Period
The stock’s recovery comes after a tumultuous period following the expiration of its lockup period last month. Shares had plummeted to their lowest level since the company’s debut but have since rebounded. Trump’s recent campaign momentum, including a stop at a local Pennsylvania McDonald’s, has contributed to the stock’s resurgence.
Elon Musk’s Endorsement
Tech billionaire Elon Musk, CEO of Tesla and SpaceX, has publicly endorsed Trump, stating that he is the only candidate who can “preserve democracy in America.” Musk’s support has likely contributed to the stock’s surge, as investors become increasingly optimistic about Trump’s chances.
Truth Social’s Fundamentals Questioned
Despite the stock’s resurgence, the fundamentals of Trump Media & Technology Group remain uncertain. The company reported a net loss of $16.4 million in the second quarter, with revenue dropping 30% year-over-year. The departure of the company’s COO earlier this month has also raised concerns.
Trump’s Stake Worth $4 Billion
At current levels, Trump’s stake in the company is worth approximately $4 billion, down from $4.5 billion after the company’s public debut. Trump maintains a roughly 60% interest in DJT, which boasts a market cap of around $6.7 billion.
Volatile News Cycle
The stock’s performance has been tied to a volatile news cycle, with shares oscillating between highs and lows. Despite this, stakeholders, including Trump, remain committed to the company, with Trump stating that he has “absolutely no intention of selling” his stake.
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