Trump Media & Technology Group Sees Sudden Surge Ahead of Election
As the clock ticks down to Donald Trump’s potential return to the White House, shares of Trump Media & Technology Group are experiencing a remarkable upswing. On Monday, the company’s stock soared by over 16%, reaching $41.12 per share – one of the largest single-day jumps since Trump’s presidential election win.
A Surprising Reversal of Fortune
This sudden surge comes as a surprise, given the company’s muted response to Trump’s election victory. Despite the rally in stocks and cryptocurrencies, Trump Media shares had remained stagnant, failing to reflect the excitement surrounding Trump’s win. In contrast, the six weeks leading up to the election saw the company’s shares skyrocket by a staggering 180%, marking its biggest gains since debuting on the Nasdaq in March.
A Shift in Ownership
Regulatory filings last month revealed that Trump transferred all 114.75 million of his shares – approximately 58% of the company’s outstanding shares – to the Donald J. Trump Revocable Trust. This move means Trump no longer directly owns any shares of Trump Media, with his revocable trust now holding more than 50% of the company’s stock. His eldest son, Donald Trump Jr., serves as the trustee, wielding sole voting and investment power over the securities.
Financial Challenges Persist
Despite this sudden surge, Trump Media remains in a precarious financial position. The company reported a quarterly loss in its third-quarter earnings last November, with revenue falling 5.6% to just $1.01 million. The loss of $19.2 million in the three months ended September 30 underscores the company’s ongoing struggles.
A New Chapter Ahead?
As Trump prepares to potentially return to the White House, all eyes are on Trump Media & Technology Group. Will this sudden surge mark a turning point for the company, or is it just a fleeting moment of optimism? Only time will tell.
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