Trump Media and Technology Group stock (DJT) extended its first gain in five weeks on Monday, as Donald Trump’s heavily criticized performance at Manhattan’s Madison Square Garden (MSG) last weekend Shares closed more than 21% higher after the rally as investors bet on the former president’s chances to improve. Win the November election.
At current levels, the stock is trading at its highest since early June, and the stock is up about 240% from its September lows.
Other Trump-related stocks also moved in tandem with DJT. Phunware (PHUN), a mobile advertising software company linked to the former president, rose slightly in early trading on Monday, but later erased those gains to close flat. Rumble (RUM), a conservative-leaning video platform, rose nearly 15%.
Trump’s rally sparked a backlash from both sides of the political spectrum after comedian Tony Hinchcliffe made inflammatory jokes about Latinos and the black community, and anti-immigrant comments also dominated headlines. .
The soaring price of DJT stock is unlikely to continue in the short term. One active investor warned that DJT stock could fall to $0 if Trump loses next week’s election.
“This is a 10/20 bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, said Monday on Yahoo Finance’s Catalyst show.
Mr. Tuttle, who currently owns a put option on the stock, said the stock’s price movement depends on a trading strategy of “buying rumors and selling facts.”
“The day after he wins, this is going to collapse,” he surmised. “If he loses, I think it will be zero.”
Shares of the company that runs Truth Social, the Republican candidate’s social media platform, have risen recently as betting markets at home and abroad shift in favor of Trump’s victory, leading to a rise in shares of Polymarket, PredictIt, All prediction sites such as Calci are pointing to Trump winning. His presidential chances are ahead of Democratic candidate and current Vice President Kamala Harris.
But national polls show both candidates are running incredibly close races, especially in key battleground states like Pennsylvania and Michigan, which will likely decide the fate of the election.
The stock price recovery comes after the stock traded at its lowest level since the company’s debut following the end of a much-touted lock-up period last month. Stocks were also under pressure, as previous polls in early September showed Harris with a slight lead over the former president.
President Trump’s recent campaign surge, including a recent stop at a McDonald’s in his hometown of Pennsylvania, follows Elon Musk’s appearance at a rally in Butler, Pennsylvania, earlier this month. It was the same location where the former president survived an assassination attempt in July.
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