TLDR:
- Trump Media & Technology Group (DJT) stock surged nearly 200% over the past month, reaching its highest levels since July
- Trading volume has been extremely high, with over 278 million shares traded in a recent week
- Stock movements appear tied to Trump’s improving election odds versus Harris in recent polls
- Company reported $16.4 million net loss in Q2 with revenue of just $837,000
- Trump maintains roughly 60% stake worth approximately $4.3 billion at current prices
Trump Media & Technology Group stock (DJT) has experienced a remarkable surge, climbing nearly 200% over the past month to reach levels above $38 per share. The stock, which hit a low of $12.15 in September, has seen its trading volume soar to unprecedented levels.
Recent trading activity has been particularly intense, with more than 278 million shares changing hands in a single week, followed by 194 million shares the week before, according to Bloomberg data. This heavy volume suggests substantial interest from both retail and institutional investors.
The company’s stock performance comes despite challenging financial results. In the second quarter, Trump Media reported a net loss of $16.4 million, with revenue of just $837,000. Approximately half of the quarterly loss was attributed to expenses related to the company’s SPAC deal.
The first half of 2024 showed similar challenges, with the company recording losses of $344 million on revenues of $1.6 million. Additionally, the company recently disclosed that its COO stepped down in September.
Trump Media, which operates the Truth Social platform, went public on the Nasdaq in March through a merger with Digital World Acquisition Corp. The company’s lockup period, preventing insiders from selling shares, expired on September 19.
Former President Donald Trump maintains approximately a 60% stake in the company. At current price levels, Trump Media’s market capitalization stands at roughly $7.1 billion, making Trump’s stake worth about $4.3 billion.
The stock’s movements appear closely tied to Trump’s political fortunes, with recent gains coinciding with shifts in election polling. Various prediction markets, including Polymarket, PredictIt, and Kalshi, show Trump’s chances ahead of Democratic nominee Vice President Kamala Harris.
Trading patterns suggest strong participation from momentum-based investors. University of Florida finance professor Jay Ritter notes that the high trading volume relative to the public float indicates numerous traders following short-term momentum strategies.
The company maintains a large retail investor base, with an SEC filing from June indicating approximately 620,000 shareholders, primarily consisting of individual investors.
Truth Social was founded after Trump’s removal from major social media platforms following the January 6, 2021, Capitol riots. While Trump has since been reinstated on platforms like X (formerly Twitter) and Facebook, he has expressed continued commitment to Truth Social.
The stock’s recovery follows a period of pressure when earlier polling showed Harris leading Trump. Recent national polls now indicate an extremely close race, particularly in key battleground states like Pennsylvania and Michigan.
Other Trump-related stocks have shown similar upward movement. Phunware (PHUN), a mobile-advertising software company with Trump connections, saw gains of roughly 20% in recent trading.
Conservative-leaning video platform Rumble (RUM) has also experienced price swings, though with more volatility, recently closing down over 4% after earlier gains of up to 8%.
Trump has publicly stated his intention to retain his stake in the company, telling reporters,
“I have absolutely no intention of selling. I love it. I use it as a method of getting out my word.”
The stock’s six-month performance shows an 8% decline, though this represents a substantial improvement following the recent rally from September lows.
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