Trump Media & Technology Group’s stock (DJT) saw a significant boost this week, climbing approximately 2% on Tuesday after a notable rally on Monday where it surged more than 10%. This spike in stock value followed a surprise appearance by tech mogul Elon Musk at a Trump rally held in Butler, Pennsylvania—an emotionally charged location due to a previous assassination attempt on the former president in July.
Musk, who is well-known as the CEO of Tesla and SpaceX, as well as the owner of the social media platform X (formerly Twitter), has been vocally supportive of Trump as the 2024 election approaches. During the rally, Musk emphasized that Trump is the sole candidate capable of “preserving democracy in America,” declaring that this could be “the last election” without a Trump victory.
As the political landscape heats up, Trump finds himself locked in a close race against current Vice President and Democratic nominee Kamala Harris. In a bid to strengthen her appeal, Harris has ramped up media appearances, including notable features on the popular podcast “Call Her Daddy” and a segment on “60 Minutes.”
At the rally, Musk’s endorsement sparked stock excitement, pushing DJT near $19 a share, valuing Trump Media at around $3.8 billion. Trump holds a substantial 60% stake in the company, equating to approximately $2.3 billion in personal wealth. Despite fluctuations since its public debut following a SPAC merger in late March, DJT has garnered attention and volatility, largely influenced by Trump’s high-profile announcements and Musk’s star power.
The rapidly shifting narrative surrounding Trump extends to previous setbacks faced by the media company, which hit a low point last month as stocks dipped after the expiration of a lockup period. Trump had previously assured investors of his commitment, stating, “I have absolutely no intention of selling… I love it. I use it as a method of getting out my word.”
This whirlwind of events plays into a broader narrative surrounding Trump’s media empire, which began with the launch of Truth Social after his bans from major social platforms following the January 6, 2021, Capitol riots. While he has since returned to platforms like X, the future trajectory of Truth Social remains uncertain amid competitive pressures from established social media giants.
Recent reports revealed troubling financials, with the company announcing a net loss of $16.4 million for one quarter, about half of which stemmed from SPAC-related expenses. Revenue also took a hit, declining 30% year-over-year, causing additional scrutiny from investors who solidly debated the company’s long-term viability as political landscapes evolve.
With the ongoing political drama and Musk’s increasing involvement, the spotlight remains on Trump Media as stock prices and public interest intertwine ahead of the fervent 2024 election season. Investors and onlookers alike will be closely watching how these dynamics unfold as Trump’s campaign continues to gain traction, anchored by Musk’s influential presence and vocal support.