In the wake of President Joe Biden’s shaky debate performance, former President Donald Trump’s social media company is seeing a surge in its stock value.
Shares of Truth Social owner Trump Media & Technology Group (DJT) rose 4% in early trading Friday as investors speculate that Trump’s chances of reclaiming the White House have been bolstered.
As the chairman and leading shareholder of Trump Media, Trump’s influence is evident. The company’s sticker symbol “DJT” pays homage to the former president’s initials. Despite recent volatility, including a transaction that diluted other shareholders’ stakes, the stock’s performance continues to be linked to news about Trump, such as his criminal conviction and debate performance.
Some critics view the stock as a way to fund Trump’s potential presidential campaign, while other investors believe the company’s success hinges on the outcome of Trump’s reelection bid.
According to Matthew Tuttle, CEO of Tuttle Capital Management, “DJT is effectively the Trump election win proxy.”
Although Trump Media is valued at over $6 billion despite minimal revenue and a small platform like Truth Social, analysts suggest that the prospect of Truth Social becoming the main platform for presidential communications in the event of a Trump victory is driving up the share price.
Money is flowing into Trump Media’s stock on the anticipation of Biden stepping aside, with some of the president’s allies not even attempting to downplay the speculation.
With the current stake worth $4.6 billion in Friday morning trading, up from $4.2 billion at the close of Thursday’s trading, Trump Media continues to be a significant player in the financial markets.
