Trump Media Stock Takes Off: 20% Surge After Rally Fuels Election Hopes

Written by Sun Yulin

October 28, 2024

In a stunning display of market momentum, shares of Trump Media and Technology Group (DJT) skyrocketed by as much as 20% on Monday, extending a remarkable five-week surge. This rally follows former President Donald Trump’s highly anticipated event at Manhattan’s Madison Square Garden (MSG) over the weekend, where supporters rallied in his favor. Investors are now betting on improved odds for Trump’s return to the White House in the upcoming November election.

A Significant Stock Surge

At its current trading levels, DJT shares are at their highest point since mid-July, having risen approximately 235% from their September lows, which hovered around $12. This surge reflects growing optimism among investors, as both domestic and international betting markets shift in favor of a Trump victory. Prediction platforms such as Polymarket, PredictIt, and Kalshi are increasingly indicating that Trump’s chances of winning are ahead of those of Democratic nominee and current Vice President Kamala Harris.

Despite this surge, some investors remain cautious. One notable warning has surfaced: should Trump lose the election, DJT shares could potentially plummet to zero. This uncertainty underscores the volatile nature of political investments, especially in an election cycle as contentious as this one.

The Political Landscape

National polls reveal a tightly contested race between Trump and Harris, particularly in key battleground states like Pennsylvania and Michigan. These states are likely to play a crucial role in determining the election’s outcome. The closeness of the race means that any shift in voter sentiment can have a significant impact on DJT’s stock price.

Trump founded Truth Social, the company’s social media platform, after being banned from major platforms like Facebook (now META) and Twitter (now X) following the January 6, 2021, Capitol riots. Since then, Trump has been reinstated on those platforms, officially returning to X in mid-August after nearly a year-long hiatus.

The Financial Implications

With shares currently trading above $45, Trump Media boasts a market capitalization of approximately $9 billion, translating to Trump’s stake in the company being valued at around $5.4 billion, as he retains roughly 60% ownership. This impressive market cap reflects the high stakes of political media ventures and the unique position Trump occupies in the current media landscape.

As the election approaches, the interplay between political events and stock performance will be closely watched. Investors in DJT are keenly aware that the next few weeks will be pivotal, and the potential for profit or loss remains exceptionally high.

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