Former President Donald Trump’s social media company, Trump Media & Technology Group, saw a 4% increase in its shares following President Joe Biden’s underwhelming debate performance. Trump, who is the chairman and leading shareholder of the company, is also the most popular user on the company’s platform, Truth Social. The company’s stock symbol is “DJT,” nodding to Trump’s initials.
The stock’s volatility can be attributed to various reasons, including a recent transaction that allowed investors to purchase additional stock, diluting the stakes of other shareholders. Trump Media’s stock performance is closely tied to news about Donald Trump, such as his criminal conviction and debate performance. Some view the stock as a means to fund Trump’s potential presidential campaign, while others believe its success hinges on Trump’s chances of reelection.
Despite generating minimal revenue and being a small company, Truth Social’s parent company, Trump Media, is valued at over $6 billion. Analysts suggest that the notion of Truth Social becoming the primary platform for presidential communications if Trump were to win is one factor driving up Trump Media’s share price. With rumors circulating about Biden potentially stepping down and some of his allies not disputing these claims, money has been pouring into Trump Media’s stock.
During Friday morning trading, Trump’s stake in the company was valued at $4.6 billion, up from $4.2 billion at the close of trading on Thursday. This increase in value reflects the growing interest and speculation surrounding Trump Media and its potential role in future political developments.