Trump Media & Technology Group Corp (DJT) experienced a surge in its stock price, soaring by 10.24% during pre-market trading on Tuesday. This upward swing came on the heels of a campaign rally by Donald Trump in New York City, where he aimed to challenge Democratic candidate Kamala Harris. The rally, held at Madison Square Garden, was a significant event as New York traditionally leans towards Democratic presidential candidates. Trump sought to sway voters with his message, focusing on his strategies to curb illegal immigration and deport migrants. The rally featured a diverse group of speakers, including former pro wrestler Hulk Hogan, ex-New York City Mayor Rudy Giuliani, and Trump’s sons Eric and Don Jr.
The stock had already closed 21.59% higher at $47.36 on Monday, according to Benzinga Pro, showcasing the potential impact of Trump’s rallies on the company’s stock performance.
This latest stock surge sheds light on the unique position Trump Media holds as a political proxy on Wall Street. While the company lacks strong financial fundamentals, its stock continues to rally, driven largely by Trump’s personal stake in the company and his commitment not to sell his shares. Trump Media, which owns the social media platform “Truth Social,” currently has limited revenue streams and market presence. Yet, the stock’s performance reflects the undeniable influence of political events and Trump’s ongoing engagement with his loyal base.
The upcoming election is predicted to be a close race between Trump and Harris. While election polls suggest a tight contest, prediction markets currently favor Trump to win. The outcome of the election could have a substantial impact on Trump Media’s future, as the company’s fortunes are inextricably linked to its founder’s political success. It remains to be seen whether the company can sustain its current momentum and build a more robust business model beyond its political ties.
