The stock of Trump Media & Technology Group witnessed a significant rally, climbing nearly 8% following Donald Trump’s election victory, which marked the beginning of his second presidency. This surge added approximately $300 million to Trump’s personal fortune.
Key Market Movements:
- Stock Performance: Shares of Trump Media soared, reaching just under $37 by mid-morning, with an early spike in premarket trading pushing the stock above $40.
- Impact on Trump’s Stake: Trump’s approximately 57% ownership in the company, which totals 114.75 million shares, saw its value jump to about $4.1 billion.
- Volatility and Trading Halts: The stock experienced a volatile session the previous day, with an impressive early rise of 18.6% to $40.74, before dipping into negative territory and temporarily halting trading, closing the day down by 1%.
- Financial Challenges: Despite the stock’s rise, the company reported a third-quarter loss of $19.2 million and a 5.6% decline in revenue year-over-year.
Market Trends and Valuation:
- October Gains: Trump Media’s shares surged by 119% in October, with several sessions seeing gains of over 15%, peaking at $54.68 — the highest since early June.
- Forbes Valuation: Forbes currently estimates Trump’s net worth at $6.3 billion, which has seen fluctuations in recent months amid the company’s volatile stock performance.
Trump Media, which went public through a reverse merger earlier in the year, has closely mirrored the ups and downs of Trump’s political fortunes. The stock experienced a valuation high of nearly $10 billion in May but faced sharp declines thereafter. Despite the challenges, the stock has rallied in recent weeks, buoyed by favorable election betting markets leaning towards Trump, though trading halts due to volatility have been a recurring issue.
The surge in Trump Media & Technology Group’s stock following Donald Trump’s re-election reflects the market’s response to his political success. While financial performance remains tepid, the stock’s reaction underscores the significant influence of Trump’s political activities on his business interests. As Trump embarks on his second term, the interplay between his political trajectory and business ventures will continue to attract keen market scrutiny.