Shares of Trump Media & Technology Group (DJT) soared on Tuesday, climbing as much as 10% to reach their highest level since July. This surge comes as investors bet on the former President Donald Trump’s improving odds in the upcoming November election, just two weeks away. The excitement surrounding the stock reflects a shift in sentiment among both domestic and international betting markets, which now favor a Trump victory over Democratic nominee and current Vice President Kamala Harris.
Prediction markets such as Polymarket, PredictIt, and Kalshi are indicating a growing belief in Trump’s chances, positioning him ahead of Harris as the election approaches. However, national polls show an incredibly tight race, particularly in crucial battleground states like Pennsylvania and Michigan, which could ultimately determine the election’s outcome.
The recent spike in DJT shares comes after a period of volatility, during which the stock hit its lowest point since the company’s debut following the expiration of its highly publicized lockup period last month. Previously, shares had been under pressure, especially after early September polling suggested Harris held a slight lead over Trump.
Founded in the wake of Trump’s bans from major social media platforms like Facebook and Twitter, Truth Social aims to carve out a space in the competitive social media landscape. Trump officially returned to X (formerly Twitter) in mid-August, raising questions about the platform’s viability as he seeks to reestablish his online presence.
Despite the stock’s recent rebound, concerns about the company’s fundamentals linger. In August, DJT reported a significant net loss of $16.4 million for the second quarter, with about half of that attributed to expenses related to its SPAC deal. Revenue for the quarter ended June 30 was a mere $837,000, reflecting a 30% year-over-year decline. Adding to the company’s woes, its COO stepped down earlier this month, raising further doubts about its operational stability.
Trump holds approximately a 60% stake in DJT, and with shares currently above $33, the company boasts a market capitalization of around $6.7 billion. This valuation means Trump’s stake is worth approximately $4 billion, down from over $4.5 billion shortly after the company went public. Despite the fluctuations, Trump has expressed no intention to sell his shares, stating, “I have absolutely no intention of selling. I love it. I use it as a method of getting out my word.”
As the election draws near, all eyes will be on both Trump’s political campaign and the performance of Trump Media & Technology Group, particularly as it navigates a tumultuous landscape filled with both opportunities and challenges.