Usman Salis
DJT stock continues its upward trend, rising another 2% in premarket trading as investors anticipate Trump's potential victory in the upcoming US election.
DJT Stock Gains Momentum Amid Election Bets
DJT stock, the media company founded by former President Donald Trump, surged another 2% in premarket trading on Wednesday. This follows a significant 10% increase the day before, reaching its highest price since July. Investors are betting heavily on Trump’s improved odds of winning the upcoming U.S. presidential election, just two weeks away.
Prediction markets such as Polymarket, PredictIt, and Kalshi have shown a significant shift toward Trump's election chances, especially as both domestic and international investors lean in his favor. However, U.S. national polls indicate a tight race between Trump and Democratic nominee Kamala Harris, with critical battleground states like Pennsylvania and Michigan playing a pivotal role in the election's outcome.
DJT Stock Recovers After Lockup Period Expiry
DJT stock has bounced back following the expiration of the company's lockup period last month. The stock had reached its lowest level since its debut, largely due to earlier polling in September showing Harris gaining an edge over Trump. With Trump’s recent surge in momentum, including a notable appearance at a Pennsylvania rally alongside Elon Musk, the stock has rebounded sharply.
Musk, the CEO of Tesla (TSLA) and SpaceX, has been vocal about his support for Trump. At the rally, Musk declared Trump as the only candidate capable of "preserving democracy," stating that this election could be America's last if Trump doesn’t win. Musk’s comments fueled both political and market discussions, further boosting DJT stock.
DJT's Financial Struggles Persist Despite Rally
Despite the recent rally, DJT continues to face financial challenges. The company reported a net loss of $16.4 million for the second quarter, half of which was related to expenses from its SPAC merger. DJT's revenue for the quarter stood at $837,000, marking a 30% decline year-over-year.
Additionally, the company’s COO stepped down in September, contributing to uncertainties surrounding the company’s operations. Trump's 60% ownership in DJT, valued at roughly $4 billion, remains intact, as he reiterated that he has no plans to sell his stake despite the expiration of the lockup period.
Trump’s Future with DJT and Truth Social
Trump founded DJT’s social media platform Truth Social after being banned from major platforms like Facebook (META) and X (formerly Twitter) following the Capitol riots on January 6, 2021. Although he has since been reinstated on these platforms, Truth Social continues its efforts to carve out a space in the competitive social media landscape.
At the current price of over $33 per share, DJT's market capitalization stands at approximately $6.7 billion. While the stock has had its ups and downs, the former president's firm hold on his company remains a key factor in its future direction. Trump has consistently used Truth Social as his main outlet for communication and political messaging.
Usman Salis
