Former President Donald Trump’s social media company, Truth Social, received a boost in its stock value following President Joe Biden’s lackluster debate performance. Shares of Truth Social’s owner, Trump Media & Technology Group (DJT), rose by 4% in early trading on Friday as investors became more optimistic about Trump’s chances of winning back the White House.
As the chairman and leading shareholder of Trump Media, Trump is also the most popular user on Truth Social. The company’s stock symbol, “DJT,” is a clear reference to the former president’s initials. The stock has experienced volatility due to various factors, including a recent transaction that allowed investors to purchase additional shares. This move diluted the stakes of other shareholders.
The stock value of Trump Media often fluctuates based on news related to Donald Trump, such as his criminal conviction and recent debate performance. Some critics see the stock as a way to fund Trump’s potential presidential campaign, while other investors are banking on the company’s success being tied to Trump’s chances of reelection.
Analysts have noted that Trump Media’s valuation surpasses $6 billion despite the company’s minimal revenue and the relatively small size of Truth Social. Speculation that Truth Social could become the primary platform for presidential communications if Trump wins reelection has been cited as a factor driving up the company’s stock price.
According to Tuttle Capital Management CEO Matthew Tuttle, there has been a significant influx of money into Trump Media’s stock amid discussions among Democrats about Biden stepping aside, with some of the president’s allies openly acknowledging this scenario. As of Friday morning’s trading, the stake in Trump Media is worth $4.6 billion, up from $4.2 billion at the close of the previous trading day.