FX168 Financial News Agency (North America) News, DJT, the media and technology group owned by Donald Trump, continued its upward trend on Wednesday, rising over 4%, as investors bet on the chances of the former president winning the November election in less than two weeks.
On Tuesday, the stock touched its highest level since July, closing up nearly 10%.
Other stocks related to Trump rose in sync with DJT, with Phunware (PHUN), a mobile advertising software company associated with the former president, rising by about 20% on Wednesday, following a more than 40% increase in the previous trading day.
The conservative video platform Rumble (RUM) showed an early rise earlier, with an 8% increase on Wednesday morning. However, by the afternoon, the stock gave back its gains, closing down more than 4%.
The company is the home of the Republican candidate's social media platform Truth Social. As both domestic and international gambling markets shift to support Trump's victory, the company's stock price has recently surged. Prediction websites like Polymarket, PredictIt, and Kalshi all show Trump's presidential election chances higher than the Democratic Party candidate, current Vice President Kamala Harris.
However, national opinion polls show that the competition between the two candidates is unusually fierce, especially in key battleground states such as Pennsylvania and Michigan, which are likely to determine the fate of the election.
Before the stock price rebounded, the company's stock price dropped to its lowest level since going public last month following the expiration of a highly focused selling ban period. The stock price has also been under pressure, as a September poll showed Harris slightly ahead of this former president.
Trump's recent campaign momentum has been strong, having recently stopped at a McDonald's in Pennsylvania, while Elon Musk made an appearance earlier this month at a gathering in Butler, Pennsylvania. This former president survived an assassination attempt in July, right at this location.
Tech billionaire Musk, the CEO of Tesla (TSLA) and SpaceX, also owns the social media platform X (formerly Twitter), openly expressed his support for Trump before the next month's election. Trump even mentioned that he would consider Musk for a cabinet position, but this businessman may not be competent for 'everything he is currently doing'.
At a rally, Musk told the crowd that Trump is the only candidate who can 'safeguard American democracy,' adding that if Trump doesn't win, it will be 'the last election.'
Meanwhile, Harris has recently been appearing frequently in the media, being asked how she will fund some of her proposals on economics and immigration.
After the Capitol riots on January 6, 2021, Trump was kicked out of major social media apps such as Facebook (META) and Twitter (now X). He then founded Truth Social and has since resumed using these platforms. After about a year hiatus, he officially returned to X in mid-August.
However, as Truth Social attempts to challenge social media giants, the company's fundamentals have been continually questioned.
In August, DJT announced second-quarter performance with a net loss of 16.4 million USD, with about half of it related to company SPAC trading expenses. The company also reported that quarterly revenue as of June 30 was slightly below 0.837 million USD, a 30% year-on-year decrease.
Earlier this month, the company revealed that its Chief Operating Officer had resigned in September.
Trump holds about 60% of DJT shares. Currently, Trump Media's stock price is over $35, with a market cap of about $7.1 billion, valuing the former president's shares at around $4.3 billion. After the company's initial public offering, Trump's stake value slightly exceeded $4.5 billion.
Trump Media went public at the end of March and listed on Nasdaq after merging with Digital World Acquisition Corp.According to the terms of the company's initial public offering (the lock-up agreement), Trump and others who received stocks before the company went public are prohibited from selling any stocks for approximately 180 days. However, since then, the stock has been volatile on Nasdaq, fluctuating between highs and lows due to stock price movements often being associated with turbulent news cycles.
Over the past six months, the stock has dropped by about 8% - after bouncing back from touching a low point last month, the stock price has risen significantly.
Shareholders, including the former president, must go through a six-month lock-up period before selling or transferring their shares. The lock-up period expired on September 19, although Trump stated at the time that he would not sell his shares.
"I have absolutely no intention of selling," the former president told reporters at a press conference before the lock-up period expired. "I like it. I use it to convey my promises."
