With the upcoming 2024 U.S. presidential election, shares of Trump's media company, Trump Media & Technology Group Corp., have significantly increased. Amid rising expectations of a Trump victory, the company's shares surged 9%, surpassing $34, almost tripling since their historic low at the end of September.
In the 2024 election, former President Donald Trump will run against Vice President Kamala Harris, the Democratic Party’s candidate. Growing interest in Trump has fueled optimism about his chances in the November 5 election, which in turn has boosted his business’s stock value.
Current polls show a tight race, with neither candidate holding a clear lead. However, Trump's odds on betting platforms have increased, creating a positive sentiment among investors and traders, directly affecting the value of Trump Media & Technology Group shares.
The shares of Trump Media, which operates the Truth Social app, have gained popularity among traders interested in speculative growth amid the possibility of a Trump victory. Since listing, the share price has increased by over 200%. With Trump holding a 57% stake in the company, his share is valued at almost $4 billion, shaping investors’ views of the company’s future earnings potential.
However, it is worth noting that Trump Media's revenue in June was just $837,000, highlighting a sharp contrast between its financial performance and its nearly $7 billion market cap. This discrepancy has raised questions among analysts and investors about the stock’s current valuation.
As the election race progresses, Trump's chances are seen as growing, even with odds relatively even. Fluctuations in Truth Social stock reflect this sentiment. With Trump’s strong drive to return to power, his enthusiastic base has fueled optimism in the face of tight competition with Kamala Harris.
Additionally, the recent rise in Trump Media stock has placed Donald Trump back on the list of the world’s 500 wealthiest people. This highlights the impact of political activity and expectations can have on the market and on the assets of public figures.
The growth of Trump Media & The Technology Group’s shares, fueled by Trump’s election bid and the rising interest in his candidacy, could be a signal of broader trends in the financial market. This trend has prompted investors to use market replay tools to analyze past fluctuations and potential outcomes of similar political events on stock performance. For instance, after an assassination attempt on Trump, there was a surge in demand for merchandise featuring his image on online platforms, with sellers rushing to offer Trump-branded items shortly after the incident. Investors and analysts are now closely monitoring developments that could affect Trump’s standing and the value of his business. Amid election uncertainty, the company’s shares remain a speculative investment, affected by market volatility and shifts in public opinion.
