Trump Media & Technology Group’s stock (DJT) surged by up to 15% on Election Day, continuing a volatile start to the week as investors monitor the unfolding U.S. presidential election between Donald Trump and Kamala Harris. Following a challenging period last week, during which DJT shares dropped nearly 20% and wiped $4 billion from its market cap, the stock has rebounded, now more than doubling from its September lows.
Election Day Surge and Market Volatility
The rally reflects growing anticipation as voting progresses. DJT’s recent fluctuations have been driven largely by election sentiment, as both domestic and global betting markets closely watch Trump’s chances of reclaiming the presidency. Market prediction platforms like Polymarket, PredictIt, and Kalshi had shown Trump with a slight edge over Harris, although recent polls reveal a tightening race, with Harris taking a slight lead in states like Iowa and narrowing margins in key battleground states such as Pennsylvania, Michigan, and Wisconsin.
One investor expressed concerns that a Trump loss could send DJT shares plummeting to zero, highlighting the volatility surrounding the stock and its direct ties to the election outcome.
Stock’s Rocky Path and Business Challenges
September was particularly challenging for DJT stock, which hit record lows as Truth Social, the social media platform tied to the company, faced significant headwinds. Investor confidence weakened following the expiration of the lockup period for insiders, coinciding with earlier polling that had placed Harris in the lead. Despite these struggles, Trump’s continued influence and recent polling strength have renewed investor interest, although the platform’s long-term fundamentals remain under scrutiny.
Truth Social’s Struggles and Revenue Concerns
Founded after Trump’s 2021 social media bans, Truth Social has sought to compete with major platforms like Facebook (META) and X, formerly Twitter. However, financial challenges persist. In Q2, DJT reported a $16.4 million net loss, partly due to costs linked to its SPAC merger. Revenues for the quarter fell by 30% year-over-year, reaching only $837,000. Additionally, the company recently disclosed the departure of its COO, who stepped down in September.
Trump retains a substantial 60% stake in DJT. At its current share price of around $39, Trump Media’s market cap stands at $7.8 billion, with Trump’s stake valued at an estimated $4.7 billion.
Outlook as Election Results Roll In
As DJT stock remains highly sensitive to election developments, investor sentiment could shift dramatically based on the final election outcome. With markets predicting a tight race, investors brace for further volatility. For Trump Media, the election’s impact on its share price could be significant, as both DJT’s fortunes and Trump’s political trajectory remain intertwined in this high-stakes contest.
