TLDR:
- Trump Media stock surged 18% on Monday, extending recent gains
- The stock rise coincides with shifting election betting odds favoring Trump
- Trump Media launched a new site for its streaming service, Truth+
- Trump owns 57% of the company, worth about $3.4 billion
- Analysts suggest retail investors are using the stock to bet on Trump’s election chances
Trump Media & Technology Group, the company behind former President Donald Trump’s social media platform Truth Social, saw its stock price surge 18% on Monday, closing at $29.95 per share. This recent rally extends a dramatic recovery for the stock, which had previously hit lows of $12.15 in late September.
The stock’s turnaround coincides with shifts in online election betting markets, which have recently shown increased odds of a Trump victory in the upcoming presidential election against Democratic nominee Vice President Kamala Harris.
Monday’s stock surge also aligned with Trump Media’s announcement of a new website for its streaming service, Truth+.
The company stated that the site offers over 1,000 movies and series, including exclusive content. However, most of the available titles appear to be older releases, with many also accessible on other free streaming platforms.
Trump Media’s recent performance has added significant value to Donald Trump’s stake in the company. The former president owns nearly 57% of the company’s stock, a holding now worth approximately $3.4 billion based on Monday’s closing price. This stake reportedly makes up more than half of Trump’s on-paper net worth, according to Forbes estimates.
Analysts have long suggested that many of Trump Media’s retail investors are supporters of the former president, using the stock as a way to show their support or bet on his chances of returning to the White House. This dynamic may help explain the company’s $6 billion market capitalization, despite its relatively small user base and limited revenue.
The stock has experienced high trading volume in recent sessions, with more than 57 million shares changing hands on Monday alone, far exceeding the company’s 30-day average volume. This increased activity reflects the growing interest and speculation surrounding the stock as the presidential election approaches.
Trump Media’s dramatic price movements have drawn comparisons to meme stocks, with some analysts describing it as a “meme stock on steroids.” The company’s valuation has been a subject of debate among market observers, with some experts arguing that it is significantly overvalued based on its current business fundamentals.
Despite the recent rally, Trump Media’s stock price remains well below its peak of $66 reached in March. The value of Trump’s stake in the company is still down by about $2 billion from its highest point earlier this year.
As the presidential race continues to be closely watched, Trump Media’s stock performance appears increasingly tied to perceptions of the former president’s election chances.
With polls showing a tight race between Trump and Harris, investors and analysts alike will likely continue to monitor the stock’s movements as a potential indicator of market sentiment regarding the election outcome.
The launch of the Truth+ streaming site represents Trump Media’s efforts to expand its offerings beyond the Truth Social platform. However, questions remain about the quality and originality of the content, with some reports suggesting that certain productions may utilize artificial intelligence tools.
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