Election Fever Sends Trump Media Stock on a Wild Ride
The presidential election is just around the corner, and investors are bracing themselves for a bumpy ride. Trump Media & Technology Group’s stock (DJT) has been experiencing extreme volatility, surging as much as 25% in after-hours trading on Tuesday before retreating to a more modest 10% gain.
Early Voting Results Send Shares Soaring
As early voting results started pouring in, Trump clinched Kentucky, Indiana, and West Virginia, while Harris claimed Vermont. This development sent DJT shares on a wild ride, with trading halted several times due to extreme volatility. Despite a 15% gain earlier in the day, shares ultimately closed down 1%.
A Binary Bet on the Election
Investors are keenly aware that the outcome of the presidential election will have a significant impact on DJT’s stock price. Matthew Tuttle, CEO of Tuttle Capital Management, warns that if Trump loses, shares could plummet to $0. “It’s a binary bet on the election,” he says.
Meme-Stock Frenzy
Interactive Brokers’ chief strategist Steve Sosnick notes that DJT has taken on a life of its own, with extreme volatility in both directions. Prior to the recent turmoil, shares had been steadily rising as domestic and overseas betting markets shifted in favor of a Trump victory.
Betting Markets Tighten
However, new polling shows Harris surpassing Trump in Iowa, narrowing his lead significantly. National polls indicate a virtually deadlocked race, with razor-thin margins in key battleground states like Pennsylvania, Michigan, and Wisconsin.
Truth Social’s Fundamentals in Question
Trump founded Truth Social after being kicked off major social media platforms following the Jan. 6, 2021, Capitol riots. Despite his reinstatement on those platforms, the fundamentals of the company have long been in question. On Tuesday, DJT reported a net loss of $19.25 million for the quarter ending Sept. 30, with revenue falling 23% over the past nine months.
Trump’s Stake in DJT
At current levels, Trump Media boasts a market cap of about $6.8 billion, giving Trump a stake worth around $4.1 billion. As the election outcome remains uncertain, investors are holding their breath, anticipating further volatility in DJT’s stock price.
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