Trump Media stock up 150% in 3-weeks: What's fueling rally?
Trump Media & Technology Group (TMTG), the social media company owned by former US President Donald Trump, is seeing a massive share price surge on Wall Street. The rise is closely linked to Trump's chances of regaining the presidency. After touching a record low of $12.15 on September 23, TMTG has seen an impressive rebound of nearly 150% in just three weeks.
TMTG's stock performance mirrors election predictions
The company's stock performance hasn't been affected by new revenue streams, product launches or endorsements from Wall Street analysts or major shareholders. Instead, it reflects the perceived possibility of Trump's victory in the upcoming November election. Matthew Tuttle, CEO of Tuttle Capital Management, said, "People realize that if Trump gets elected, this stock has the potential to do something."
Trump's significant stake in TMTG
Not only is Trump the face of TMTG, he is also its biggest user on Truth Social, and owns a significant stake in the company. His 114.75 million shares make him the largest shareholder. His stake has risen by almost $1.7 billion since September 23, and is currently estimated to be worth $3.4 billion, according to current valuations.
A reflection of election expectations
Jay Ritter, a Finance Professor at the University of Florida, called the 100% surge for TMTG since September 23 "stunning." He said, "Meme stocks thrive on attention, and in the case of Trump Media, the price also reflects the expectations of who will win the November election." Michael Block from AgentSmyth noticed heavy bullish options activity expiring on November 15, viewing it as a speculative bet on Trump's victory.
Trump's decision to retain shares boosts TMTG's stock
Despite the recent surge, TMTG's stock price remains far from its peak in March of $66. The value of Trump's stake has also fallen by around $2 billion from its brief high in late March. However, the company's share price has benefited from Trump's decision to retain his shares, amid speculation that he might sell them once lock-up restrictions lapsed.
