Donald Trump’s media company, which trades under the name DJT, identical to the former president’s initials, often attracts attention, at least on the stock market.
Trump Media & Technology Group surged 18% on Monday, ending a three-week run and reversing a slump that had sent the stock lower. Lowest since listing Late September.
Trump Media’s stock closed Monday at $29.95, up $4.67, or 18.5%. The stock price has more than doubled since hitting a low of $11.75 on September 24, according to data from financial services company FactSet. However, despite the recent rally, DJT is still trading at less than half its March high price.
The volatility of Trump Media stock has led some analysts to meme stocksOr a company that trades on social media instead of traditional analytical metrics like sales growth and profitability. Loss-making DJT generates profits plunged 30% in recent quarterIt attracted a loyal base of Trump voters who tended to be smaller investors eager to put their money behind the former president.
Trump Media, whose core assets include social media property Truth Social, announced Monday that its streaming service, Truth+ TV, is now available online.
DJT has also been seen as representative of Trump’s potential electoral success in the November 5 election, with polls showing fierce race Between Trump and Vice President Kamala Harris.
Recently, prediction market PredictIt.org shifted from bettors giving Harris a better chance of winning to favoring Trump, who is now given higher odds. Prediction market Polymarket also gives Trump better odds.
Why is DJT stock price rising?
Truth Social’s $DJT group, which has more than 20,000 members, frequently includes posts about DJT purchases by Trump supporters, often encouraging others to buy more.
“Just checked my brokerage account,” one $DJT member wrote on Monday. “Thank you Uncle Donny!”
DJT’s stock price has more than doubled since hitting its lowest point on September 24th, but it still has a long way to go from its high of $79.38 on March 26th, the day of its listing.
Trump Media plummeted in late September as the so-called months-long lock-up period following DJT’s initial stock sale expired. These agreements are common in IPOs because they can prevent management from selling stock quickly, which can drive down the stock price.
With the lockup period expiring, insiders, including Trump Media’s top executives, can now sell DJT stock.
while trump was there I promised myself not to sell it. Another insider sold a large stake, according to his stock, which may have contributed to the stock’s decline in September. Investor United Atlantic Ventures held 7.5 million shares of Trump Media stock as of March, equivalent to about 4% of the company’s outstanding shares. It was sold on an unspecified date.According to a regulatory filing last month.
United Atlantic Ventures was founded by Andrew Litinsky and Wes Moss, who appeared on “The Apprentice,” the reality show that starred Trump. Litinsky and Moss worked on the debut of the Truth Social network, but relations between them and the business soured. give rise to several lawsuits.
Meanwhile, President Trump remains the company’s largest shareholder with close to 60% of shares, according to FactSet. At current prices, Trump’s stock is worth about $3.4 billion.
