As the US presidential election between Donald Trump and Kamala Harris enters its final phase, shares of Trump Media & Technology Group Corp (DJT) have surged significantly in after-hours trading. This dramatic increase in the stock’s value is being fueled by two key factors: the ongoing election and the company’s recently released third-quarter financial results.
At the time of writing, the after-hours trading volume for DJT stock stands at a staggering 21.9 million, according to Nasdaq data. The stock’s after-hours high reached $49.78, while the low dipped to $31.12. This heightened volatility led to the stock being halted twice on Tuesday, showcasing the intense market interest surrounding Trump Media.
The election’s influence on DJT’s stock performance is undeniable. Both Trump and Harris have secured early victories in states traditionally considered Republican and Democratic strongholds, respectively. Trump has claimed victory in Kentucky, West Virginia, and Indiana, while Harris has won in Vermont. This dynamic creates a sense of uncertainty and potential for significant market swings depending on the ultimate election outcome.
If Trump were to emerge victorious, his social media platform, Truth Social, is expected to be a central part of his communication strategy. This could potentially lead to increased user engagement and potentially drive revenue growth for Trump Media. However, a win for Vice President Harris could pose challenges to the future of Truth Social, as its appeal may be diminished in a new political landscape.
Beyond the election, DJT’s stock volatility is also influenced by its financial performance. After the market closed on Tuesday, the company announced its third-quarter financial results, reporting net sales of $1.01 million, a 6% decrease year-over-year. All of its revenue stemmed from advertising on the Truth Social platform during the quarter. While the company posted a loss of 10 cents per share, this represented an improvement from the 30 cents per share loss recorded in the third quarter of the previous year.
In its financial report, Trump Media acknowledged the dependence of its success on the popularity of its brand and the reputation and popularity of President Donald J. Trump. The company explicitly stated, “The value of TMTG’s brand may diminish if the popularity of President Donald J. Trump were to suffer.”
Trump maintains an approximately 57% ownership stake in Trump Media, adding another layer of complexity to the stock’s trajectory.
In regular trading hours, DJT shares closed Tuesday’s session with a modest 1.16% increase, ending at $33.94. However, the after-hours surge has seen the stock jump 10.43% to reach $37.48, according to data from Benzinga Pro.
The future of DJT’s stock remains closely tied to the outcome of the US presidential election. The market’s response to the election results will have a profound impact on the company’s trajectory and the potential success of Truth Social. With a high degree of volatility and uncertainty, DJT stock has become a fascinating case study in the intersection of politics and finance.
