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Wall Street JournalTrump Media (DJT) Stock Has Rollercoaster Day as Election Betting Odds Now Favor Trump
Shares of Trump Media & Technology Group (NASDAQ: DJT) experienced another day of volatile trading, rising as much as 13% early in the day, before rolling over in the afternoon to close the day down 9.65%. After rising 18% on Monday, today’s rollercoaster trading session saw DJT stock briefly halted in the afternoon due to the volatility when shares suddenly plunged around 6% triggering NASDAQ circuit breakers.
According to a report by Yahoo Finance, the sudden drop in DJT stock happened while former President Donald Trump was giving a speech about his proposed economic policies at the Economic Club of Chicago.
After declining approximately 85% off its March 2024 highs, Trump Media, the parent company of the social media platform Truth Social, has rebounded significantly over the past week. The recent surge in DJT stock appears correlated to the shifting election betting odds market, which now has Trump as the favorite over Democratic candidate Kamala Harris, to win the 2024 election.
Betting Markets Signal Shift
Election betting markets have become one of the main catalysts for Trump Media’s recent rally. Over the past week, online platforms like Polymarket and Kalshi saw their betting odds shift in favor of Trump. Polymarket odds currently have Trump as a 57.5% favorite to win the election, while Kalshi has the former President at 56%.
Contracts for a Trump victory on PredictIt are currently trading at $0.54, implying a 54% chance of Trump winning the election. This is a notable shift, as weeks prior, many platforms had tilted toward Harris, who is currently serving as Vice President in the Biden administration.
The rally in Trump Media shares is likely tied to the belief that Trump’s return to power could bolster Truth Social’s influence and user base. While the platform has yet to compete meaningfully with social media giants like Meta’s (NASDAQ: META) Facebook and X (formerly Twitter), many of its retail investors are Trump supporters who view owning DJT stock as both a financial investment and a political statement.
Source: Polymarket
Election and Media Buzz Boosts DJT Stock
Adding to the stock’s momentum, Trump Media announced the launch of a new website for its streaming service, Truth+. The platform promises a range of exclusive content, although many of its offerings overlap with free services like Tubi. Despite this, the company’s bold expansion into streaming has added fuel to the stock’s rally, driving heightened trading activity.
Over 98 million DJT shares changed hands today, more than three times the company’s 30-day average trading volume. Investors seem energized by both the political climate and Trump’s latest media ventures, pushing the stock to new heights. The company’s market capitalization now hovers around $6 billion, with Trump’s stake worth approximately $3.4 billion.
While this enthusiasm has brought substantial gains to Trump Media’s stock, analysts warn that the company’s fundamentals remain shaky. Its revenue streams are limited, and recent financial reports revealed a net loss of $16.4 million for the second quarter of 2024. Despite these challenges, the belief that a Trump presidency could further amplify Truth Social’s presence continues to drive investor sentiment.
A Volatile Road Ahead
The recent rally and today’s decline see the wild ride continue for Trump Media stock, whose shares have been highly volatile since its IPO. The company’s shares have oscillated dramatically, often mirroring developments in Trump’s political fortunes. Just last month, DJT shares hit a low of $11.75, falling over 15% from their earlier peak. The recent surge, however, has lifted the stock back up closer to $30 per share.
However, volatility remains a key feature of DJT stock, with swings frequently triggered by news cycles tied to Trump’s campaign. Last month, a sudden drop in the stock’s price briefly halted trading, with shares falling nearly 10% before stabilizing. Despite these fluctuations, Trump has consistently expressed confidence in the company, reiterating that he has no plans to sell his shares.
As the 2024 election race heats up, Trump Media’s stock will likely remain a barometer of the former president’s chances. For now, investors are betting that a Trump victory could solidify Truth Social’s position in the conservative media ecosystem, pushing the stock to even greater heights.
Trump Media (DJT) Stock Price Action and Chart
Shares of Trump Media & Technology Group (NASDAQ: DJT) stock closed Tuesday’s trading session at $27.06, down 9.65% today.
YTD, DJT stock is up 55.07%.
View Trump Media Interactive Stock Chart on Barchart
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
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