Trump Media Stock Soars as Trump Returns to the White House
Shares of Trump Media & Technology Group Corp (DJT), the company behind the social media platform Truth Social, have experienced a dramatic uptick in the past month, driven by the return of Donald Trump to the White House for a second term. The stock has rallied over 26.23% in the last month, significantly outpacing the performance of other major players in the market.
This surge has translated into substantial gains for investors. An investment of $1,000 in DJT in November 2023 would be worth over $2,107 as of Friday’s closing price of about $31.91, representing a cumulative growth of over 110.77% in the last year. This performance eclipses the 9.52% growth of Nvidia and the 3.21% growth of the SPDR S&P 500 ETF Trust SPY over the same period.
The most recent surge of 15.22% on Friday came after President-elect Trump publicly denied rumors that he was planning to sell his stake in Trump Media. In a post on Truth Social, Trump labeled these rumors as “fake, untrue, and probably illegal,” attributing them to market manipulators or short sellers. He emphasized, “I have no intention of selling.” Trump holds a 57% stake in Trump Media & Technology Group.
Despite this positive news, Trump Media faces ongoing financial challenges. The company reported a 6% decline in third-quarter net sales to $1.01 million, with advertising on the Truth Social platform driving the topline. They also reported a loss of 10 cents per share compared to a loss of 30 cents per share in last year’s third quarter.
However, despite these recent losses and low revenue, Trump Media’s market cap now exceeds $6.9 billion. The company’s future remains uncertain, but the recent stock surge highlights the potential impact of Donald Trump’s political influence on the market.
