The finance world was buzzing on Monday as Trump Media & Technology Group (DJT) experienced a significant surge in stock price following a reported assassination attempt on former President Donald Trump at a Pennsylvania rally over the weekend. The parent company of Trump’s social media platform, Truth Social, saw shares skyrocket by about 40% after the markets opened. Additionally, other Trump-related stocks, like conservative-leaning video platform Rumble (RUM), witnessed a climb of more than 10%.
It is important to note that prediction bets on Trump winning the election saw a notable increase on various online betting platforms in the aftermath of the event. Even though this incident marked the first time a US president or major party candidate had been shot since the 1981 assassination attempt on President Ronald Reagan, some experts believe it may not have a lasting impact on Trump’s presidential chances.
Terry Haines, founder of policy advisory firm Pangaea, shared his insights with Yahoo Finance, suggesting that while the event may provide a short-term boost to Trump’s campaign, it is unlikely to significantly alter the long-term prospects. Haines emphasized the disconnect between the tragic event and voters’ likelihood of supporting Trump in the election.
The stock for DJT has been experiencing fluctuations in recent months, with highs and lows occurring quite frequently. For example, the stock surged (then dropped) last month after current President Joe Biden stumbled in his first presidential debate of 2024 with Trump. In another instance, Trump faced a setback in May when he was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign, causing shares to fall by 5% the following day.
Trump Media, the parent company of Truth Social, went public on the Nasdaq following a merger with special purpose acquisition company Digital World Acquisition Corp. However, shares have seen a decline of approximately 20% since the company’s public debut at the end of March.
Former President Trump launched Truth Social after being banned from major social media platforms like Facebook (META) and Twitter (now known as X) following the Jan. 6 Capitol riots in 2021. Despite Trump’s reinstatement on those platforms, the road ahead for Truth Social comes with its financial challenges. The company reported sales of just over $4 million in an updated regulatory filing, while net losses reached nearly $60 million for the full year ending Dec. 31. Trump Media anticipates continued losses amid profitability challenges.
In May, the company disclosed first-quarter results indicating losses of $327 million, primarily attributed to expenses related to its SPAC deal. Over 621,000 different shareholders owned stock in Trump Media as of April 29, with a majority being retail investors.
At present, Trump maintains a roughly 60% stake in DJT, boasting a market cap of approximately $5.8 billion and a stake worth around $3.5 billion at the stock’s current value of around $43 per share. Following the company’s public debut, Trump’s stake was valued at just over $4.5 billion. While the stock achieved a milestone in late April, securing Trump an additional $1.2 billion in cash, stakeholders are subject to a six-month lockup period before selling or transferring shares.
Stay updated on the latest financial news by following Senior Reporter Alexandra Canal on Twitter (@allie_canal), LinkedIn, and contacting her at [email protected]. For more insights on earnings reports, analysis, and company news, visit Extreme Investor Network.