Shares of Trump Media & Technology Group (DJT) soared over 10% on Monday as Elon Musk made an unexpected appearance at a Donald Trump rally in Butler, Pennsylvania, just two days prior. This rally held particular significance as it took place at the same site where Trump narrowly escaped an assassination attempt in July.
Musk, the billionaire behind Tesla and SpaceX, reaffirmed his support for Trump ahead of the imminent election, stating unequivocally that the former president is the sole candidate equipped to “preserve democracy in America.” He dramatically warned that this election might be the last if Trump does not emerge victorious.
Amidst a fiercely competitive race, Trump continues to grapple with his Democratic opponent, Vice President Kamala Harris, who is aggressively campaigning to solidify her standing in the polls. Recently, Harris has ramped up her media appearances, being featured on popular platforms such as “Call Her Daddy”—a podcast aimed at younger audiences—and participating in an interview for “60 Minutes.”
The latest surge in DJT shares is noteworthy, given that Trump is said to hold approximately 60% of the company’s stock. As of now, DJT shares are hovering around $19, valuing the company at approximately $3.8 billion and Trump’s share at an impressive $2.3 billion. This is a stark contrast to the post-public debut valuation when his stake was worth over $4.5 billion.
Trump Media recently went public on the Nasdaq following its merger with Digital World Acquisition Corp. Despite navigating a tumultuous marketplace and experiencing significant fluctuations tied to ongoing political events, the recent rally has temporarily boosted stock prices. For context, DJT had dipped to its lowest levels following the expiration of a highly publicized lockup period on September 19, during which shareholders were restricted from selling their stakes.
Following the expiration of this lockup, Trump confirmed he wouldn’t sell his shares, claiming, “I have absolutely no intention of selling. I love it. I use it as a method of getting out my word.”
The volatility of DJT’s stock is not new; it spiked earlier this year after Trump’s spirited debate against President Joe Biden, which, after a period of pressure from the market, eventually led to Biden dropping out of the presidential race. Yet, even amidst these highs, the company has faced scrutiny due to its performance fundamentals, with DJT reporting substantial financial losses during the most recent quarter.
For the second quarter, Trump Media disclosed a net loss of approximately $16.4 million, with its revenue plummeting nearly 30% year-over-year to just under $837,000. Recently, the company also announced its COO’s exit, further highlighting the challenges it faces in a rapidly changing media landscape.
As Truth Social works toward asserting its presence in a crowded social media arena—especially after Trump’s reinstatement on other platforms like X (formerly Twitter)—questions linger about its long-term viability amid such fierce competition. Despite these uncertainties, the excitement surrounding the upcoming election may continue to drive interest—and volatility—around DJT’s stock as it aligns with the pulse of American political sentiment.
With significant public interest and the backing of influential figures like Musk, DJT might just be on the verge of redefining its trajectory in the tech and political arenas. The coming weeks will surely test the resilience of Trump Media as it prepares for possibly one of the most crucial elections in recent history.