President Joe Biden’s recent debate performance has given a boost to former President Donald Trump’s social media company, Truth Social. The shares of Trump Media & Technology Group, the owner of Truth Social, increased by 4% in early trading on Friday as investors saw a potential increase in Trump’s chances of returning to the White House.
The stock price of Trump Media is heavily influenced by news related to Donald Trump, such as his legal issues and his debate performance. Some see the stock as a way to fund Trump’s potential presidential campaign, while others believe its long-term success depends on Trump’s chances of being reelected. The company is valued at over $6 billion, despite generating little revenue and having a small platform like Truth Social.
Trump, who serves as the chairman of Trump Media and is the leading shareholder, is also the most popular user on Truth Social. The company’s stock symbol is “DJT,” reflecting the former president’s initials. The stock has experienced volatility due to various factors, including a recent transaction that allowed investors to purchase additional stock and consequently diluted other shareholders’ stakes.
Analysts suggest that the share price of Trump Media may be inflated by the possibility of Truth Social becoming the primary platform for presidential communications if Trump were to win. With discussions among Democrats about Biden’s potential resignation and some of the president’s allies not denying it, money is flowing into Trump Media’s stock. By the end of trading on Thursday, the stake in Trump Media was worth $4.2 billion, but with the current trading on Friday morning, it has increased to $4.6 billion. This growth reflects investor optimism surrounding Trump Media’s potential success linked to