The share price of Trump Media, the company that owns the Truth Social app frequently used by former President Donald Trump, soared by more than 12% in afternoon trading on Monday. The DJT ticker rose more than $5 per share just before 1 p.m. ET. Trump Media began public trading on March 26 with a price of over $70 per share, but the share prices plummeted over the next few weeks, reaching a low closing price of $22.80 on April 16. However, since then, Trump Media shares have more than doubled in price, adding billions of dollars to the company’s market capitalization and to Trump’s stake without any significant news about the company’s bottom line improving.
Former President Trump wrote in a post on Truth Social earlier Monday, “TRUTH SOCIAL IS THE REAL VOICE OF AMERICA!!!” The stunning rise in Trump Media’s share price comes amid Trump’s presumptive candidacy as the Republican presidential nominee for the upcoming elections. The gains experienced by Trump Media have occurred despite the company’s social media business recording $58 million in losses last year with revenue of just $4.1 million. Trump Media has advised shareholders on how to avoid having their stock shares loaned out for use by short sellers to bet that the price drops.
Trump Media has more than $200 million in cash on hand, indicating the company’s financial stability. The recent surge in share price has added value to the ex-president’s stake in the company, boosting the company’s market capitalization. Despite the significant increase in share price, there has been no new information released that could explain the sharp rise. The company’s performance in the social media business has been lackluster, with substantial losses reported in the previous year.
The market reaction to Trump Media’s share price surge indicates investor confidence in the company’s potential and the influence of former President Trump. The rise in share price is noteworthy, given the recent fluctuations the company experienced after its initial public trading. Trump Media’s ownership of the Truth Social app, which has been endorsed by Trump as the “real voice of America,” has likely contributed to the positive market sentiment towards the company. With Trump’s involvement in the company and his status as a prominent political figure, the market dynamics surrounding Trump Media are closely watched for any potential developments.
It remains to be seen how Trump Media will capitalize on the recent surge in share price and investor interest. The company’s financial performance, especially in its social media business, will be closely scrutinized to assess its long-term sustainability and growth prospects. The market volatility around Trump Media shares reflects the ongoing influence of political factors on the financial performance of companies associated with high-profile figures like former President Trump. Investors will continue to monitor Trump Media’s progress and any updates that may impact the company’s share price in the future. Check back for updates on this developing news.
