DJT Stock Rises After Elon Musk’s Surprise Appearance at Trump Rally

Shares of Trump Media & Technology Group (DJT) jumped around 4% in premarket trading on Tuesday, building on a significant 10% increase from the day before. This rise comes after Elon Musk made a surprise visit to Donald Trump's rally in Butler, Pennsylvania, which is notable because it was the same place where Trump survived an assassination attempt in July.

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Musk, who is the CEO of Tesla and SpaceX and owns the social media platform X (previously known as Twitter), has been very vocal about his support for Trump as the election approaches. At the rally, Musk told attendees that Trump is the only candidate capable of "preserving democracy in America," adding that this election could be "the last" if Trump doesn’t win.

Currently, Trump is in a close race against Vice President Kamala Harris, the Democratic nominee. Harris has been stepping up her media presence to strengthen her position in the polls. Recently, she appeared on the popular podcast "Call Her Daddy" and was featured on "60 Minutes."

Trump holds a significant stake in DJT, with about 60% ownership. At the current share price of around $19, Trump Media is valued at approximately $3.8 billion, meaning Trump's share is worth about $2.3 billion. This is a decrease from over $4.5 billion since the company went public earlier this year.

DJT began trading on the Nasdaq after merging with Digital World Acquisition Corp, but the stock has experienced ups and downs that closely follow news developments. Last month, shares reached their lowest level since the merger, coinciding with the end of a lockup period that previously prevented shareholders, including Trump, from selling their shares for six months. After this lockup expired on September 19, Trump assured that he plans to keep his shares, stating, “I have absolutely no intention of selling. I love it. I use it as a method of getting out my word.”

The stock saw a spike in June after President Biden stumbled in a debate against Trump. However, following Biden’s recent announcement to drop out of the presidential race, DJT shares have been under pressure as investors consider the possibility of a Harris victory.

In May, Trump was found guilty of falsifying business records to influence the 2016 presidential campaign, leading to a 5% drop in shares after the verdict. His sentencing is now postponed until November 26. Since going public, shares have fallen by around 70%.

After being banned from major social media platforms like Facebook and Twitter following the January 6, 2021, Capitol riots, Trump launched Truth Social. He has since returned to X in mid-August after a year-long break. However, concerns about the financial stability of Truth Social linger.

In August, DJT reported a net loss of $16.4 million for the second quarter, with nearly half of that amount due to costs related to its merger. The company also revealed it earned just under $837,000 for the quarter ending June 30, which is a 30% decline compared to the same time last year. Additionally, it was announced last week that the company’s COO resigned in September.

Key Points

• Musk's Support: His endorsement of Trump is boosting the stock market's confidence.
• Stock Fluctuations: DJT shares have been unstable, closely linked to political events and media attention.
• Financial Concerns: Questions remain about the long-term health of Trump Media and its profitability.

iShook Finance Expert Thought

In conclusion, the recent surge in Trump Media & Technology Group (DJT) shares following Elon Musk's surprise appearance at Donald Trump's rally shows the impact of political dynamics on stock performance. While this excitement may benefit the company in the short term, questions remain about its long-term stability and the financial health of Truth Social.

Investors should stay alert as Trump navigates the upcoming election, with key figures like Musk potentially influencing public sentiment and stock trends. Ultimately, how Trump Media addresses its financial challenges will determine its future in this competitive landscape.

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