FX168 Financial News (North America) reported that the stock price of the Trump Media Technology Group (DJT) soared 25% after-hours on Tuesday, November 5, before falling back. Investors are preparing for more intense volatility as Donald Trump leads Kamala Harris in the latest election results, preventing the first female president of the United States.
On Tuesday, during the trading session, the stock showed violent performance, with trading suspended multiple times due to volatility. The stock quickly erased a 15% gain, reversing the double-digit percentage increase at Monday's opening. Despite recovering from a significant drop, the stock still closed down slightly more than 1%.
The latest price movements come as investors await the results of the presidential election between the Republican candidate and the challenger.
As strategists categorize the stock as a binary bet on the election, its volatility is expected to continue.
Matthew Tuttle, CEO of investment fund Tuttle Capital Management, stated that the stock's direction depends on the 'buy rumors, sell facts' trading strategy.
"I can imagine that the day after he wins, you will see this number drop," he speculated. "If he loses, I think it will go to zero."
Steve Sosnick, Chief Strategist at Interactive Brokers, stated that DJT has its own life in the stock market.
"It has a lot of volatility on the way up, when a stock is swinging wildly in one direction, it often swings wildly in the other direction."
In September, the stock price of the company - the location of the Republican presidential candidate's social media platform Truth Social - fell to its lowest level since its highly anticipated lock-up period expired, after the trading price reached the lowest level since the company's initial debut.
However, as both domestic and international gambling markets shift to support Trump's victory, the stock price has rebounded from the low point.
After the riots at the U.S. Capitol on January 6, 2021, Trump was kicked out of major social media applications like Facebook (META) and Twitter (now X), and later founded Truth Social. Subsequently, Trump resumed posting on these platforms. After an interruption of about a year, he officially resumed post on X in mid-August.
As Truth Social tries to challenge the social media giants, the company's fundamentals have long been questioned.
On Tuesday, DJT announced third-quarter results after the market closed, showing a quarterly net loss of 19.25 million USD as of September 30, narrowing from 26.03 million USD reported for the same period last year.
DJT also reported revenue of 1.01 million USD, slightly down from 1.07 million USD reported in the third quarter of 2023. Revenue for the past nine months ending September 30 decreased by 23% compared to the same period last year.
Last month, the company revealed that its Chief Operating Officer had resigned in September.
Trump holds about 60% of DJT's shares, valued at billions of dollars.
