Business
Trump Media Stock Rises After Debate
Former President Donald Trump’s social media company is gaining traction following President Joe Biden’s weak debate performance.
Shares of Trump Media & Technology Group (DJT), which owns Truth Social, gained 4% in early trade Friday as investors gambled that the debate had increased Trump’s prospects of retaking the White House.
Trump | Reuters Image
Trump Media Stock Rises After Debate
Trump is the chairman of Trump Media and the majority stakeholder. He is also the most popular person on Truth Social. The company’s sticker emblem even has the word “DJT,” which refers to the previous president’s initials.
The stock has been volatile for various reasons, including a transaction that enabled investors to purchase more stock, which diluted other shareholders’ stakes.
Trump Media does not trade on the core company’s fundamentals; the stock has fluctuated in response to news about Donald Trump, such as his criminal conviction and Thursday night’s debate performance.
Trump Media Stock Rises After Debate
Some detractors saw the shares as a vehicle to bankroll Trump’s presidential campaign. Other investors believe Trump’s reelection chances will determine the company’s long-term success.
“DJT is effectively the Trump election win proxy,” Matthew Tuttle, CEO of Tuttle Capital Management, told CNN Friday.
Trump Media is valued at over $6 billion, even though the company generates very little money and Truth Social is small.
However, experts have stated that one factor driving Trump Media’s share price is the belief that Truth Social will be the primary venue for presidential communications if Trump wins.
Trump | CNBC Image
Trump Media Stock Rises After Debate
Tuttle claimed money is flooding into Trump Media’s stock as Democrats call for Biden to stand down and that some of the president’s allies aren’t even attempting to “spin it.”
That stake was valued at $4.6 billion as of Friday morning trading. This is up from $4.2 billion at the end of business on Thursday.
SOURCE – (CNN)
