The stock market is buzzing this week, and it’s not because of the latest tech IPO or a groundbreaking new product. Trump Media & Technology Group Corp. (DJT) shares are soaring, fueled by a controversial campaign rally held at Madison Square Garden in New York City on Sunday night. The event, featuring a star-studded lineup including Elon Musk, Robert Kennedy Jr., Grant Cardone, Rudy Giuliani, and Hulk Hogan, drew a sold-out crowd and generated significant attention, both positive and negative, across the political spectrum.
The rally, part of former President Donald Trump’s ongoing campaign for the presidency, generated substantial buzz, particularly around comedian Tony Hinchcliffe’s controversial stand-up set. Hinchcliffe, known for his roast-style comedy, delivered a set that included comments about different ethnicities and races, drawing criticism from some for its offensive nature. However, it’s worth noting that the rally itself, despite its controversy, appears to have had a significant impact on the stock market.
On Monday, the first trading day after the rally, DJT stock closed the session up over 21%, extending its five-week winning streak. This surge in stock price seems to be more driven by the perceived success of the rally and the potential for Trump’s return to the White House than the actual performance of the company’s Truth Social business.
According to Matthew Tuttle, CEO of investment fund Tuttle Capital Management, “It’s a binary bet on the election.” This sentiment is reflected in betting markets and prediction sites like Polymarket and Kalshi, which currently favor Trump’s chances of winning the presidency. The latest odds show him with a 66.1% chance, while Vice President Kamala Harris, the Democratic nominee, stands at 33.9%. However, it’s important to note that traditional polls generally show Harris with a slight lead.
Tuttle, who owns put options on DJT stock, believes that the current surge is likely to be short-lived and predicts a significant drop in the stock price after the election, even if Trump wins. “I would imagine that the day after him winning, you’d see this come down,” he said. “If he loses, I think it goes to zero.” This perspective suggests that the current market euphoria surrounding Trump’s rally and potential return to the White House might be overblown and could quickly evaporate following the election results.
As of Tuesday afternoon, Trump Media & Technology shares are up 12.25% at $53.16, continuing their upward trajectory, fueled by the ongoing buzz surrounding the Madison Square Garden rally. While the current market trend might appear positive for DJT investors, it’s crucial to remember that the long-term prospects of the stock are highly uncertain and largely dependent on the outcome of the presidential election. The stock’s performance after the election could be drastically different from its current trajectory, with potential for significant losses, depending on the final result.
