Shares of Trump Media & Technology, parent of Truth Social, surged Monday following the failed assassination attempt over the weekend on former President Donald Trump. Meanwhile, Tesla Chief Executive Elon Musk on Saturday threw his support officially behind Trump in the 2024 election. Tesla stock jumped Monday.
DJT stock advanced more than 30% to 41.40 during market action on Monday, hitting 46.27 intraday — its highest level since early June.
The Trump stock ballooned 50% before the market opened after shots rang out during a rally Saturday. Trump, apparently bleeding from his ear, was rushed from the stage by security. Details around the shooting continue to emerge as authorities investigate it as an assassination attempt.
Meanwhile, the federal judge in the classified documents case against Trump on Monday dismissed the indictment on the grounds the special counsel was improperly appointed, according to a court filing Monday.
The Donald Trump brand and the value of DJT stock are closely related, as Truth Social launched after Twitter, now X, shut down Trump's account following the Jan. 6, 2021, riot at the U.S. Capitol.
In the aftermath of the assassination attempt, Trump received several high-profile endorsements from the investing and business community, including from Musk and Bill Ackman.
"I fully endorse President Trump and hope for his rapid recovery," Musk posted on X, formerly Twitter, on Saturday. Tesla stock advanced 1.8% to 252.64 on Monday, rising as high as 265.60 intraday, after already rallying more than 25% in July.
The Trump Stock: Cash Strapped But Surviving
Trump Media recently announced the cash exercise of stock warrants between June 20 and July 1 brought in more than $105 million, according to regulatory filings. This comes as Trump Media has been hemorrhaging cash.
The Donald Trump-backed company has more than $350 million in cash, with no debt, on its balance sheet as of July 1, according to DJT. This comes as Trump Media has been hemorrhaging cash.
In April, Trump Media filed a "preliminary prospectus" with the U.S. Securities and Exchange Commission (SEC) to offer 21.49 million shares of common stock, issuable "upon the exercise of warrants."
In May, Trump Media & Technology announced another quarterly loss while revenue once again failed to hit $1 million. Trump Media reported an adjusted EBITDA loss of $12.1 million, with just over half of that due to one-time payments related to the March closing of its SPAC merger with Digital World Acquisition Corp.
Revenue was just $770,500, the second straight quarter below $1 million. Trump Media reported a GAAP loss of $327.6 million. That was largely due to $311 million in noncash expenses from converting promissory notes and eliminating previous liabilities.
At the time, the company said it believes it has "sufficient working capital to fund operations for the foreseeable future."
Trump Media advanced more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday.
This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump's tech and social-media platform on March 22. The SPAC company stock had rallied 35% on the day before the change to "DJT."
In 2024, DJT/DWAC has gained 77%. Trump has a nearly 65% stake in DJT.
Please follow Kit Norton on X @KitNorton for more coverage.
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