Shares of Trump Media volatile following presidential debate
A screen shows Truth Social and Trump Media shares at Nasdaq.
Shares of Trump Media & Technology Group (TMTG) saw a significant slump of over 10.84% after surging8per cent in premarket trading on Friday. This followed President Joe Biden's underwhelming performance against former President Donald Trump during the first 2024 US presidential debate.
Despite the volatility, Citi analysts said that there may be increased interest in Trump Media & Technology after the debate. Analysts point to news headlines & narratives on social media. According to reports, Biden's 'shaky' performance boosted Trump's prospects ahead of the elections. Interestingly, Trump and Biden are the oldest presidential candidates ever.
Ben Laidler is a global markets strategist at digital brokerage eToro. He noted that "investors are probably going to give Trump the benefit of the doubt given how positive he was for markets in his presidency."
He further indicated that the stock performance of companies associated with Trump might reflect investor expectations for the upcoming election. This suggests that Trump is perceived to be in a strong position.
Trump media's shares have been tied to Donald Trump, with the shares dropping significantly after Trump's conviction in the hush money trial. Trump owns 46.9 per cent of the company, which is worth $6.5 billion.
Phunware, a software developer that worked on Trump’s 2020 campaign app experienced an increase of 8.1 per cent to $6.81. Rumble. A video-sharing platform favoured by conservatives. Also edged up by 0.5 per cent to $5.7.
Despite facing legal challenges earlier this month, including being found guilty of falsifying documents related to a payment to silence a porn star TMTG’s shares have surged about 110 per cent this year.
Trump owned 64.9 per cent of TMTG as of June 10. He has seen his stake valued at approximately $6.5 billion as of the last close.
The stock has been extremely volatile since its debut in late March. Despite the volatility, the stock has tripled this year. It peaked at nearly $80 in intraday trading on March 26. The company reported a loss of more than $300 million in the last quarter. The company's fate is tied to the US presidential election outcome. A victory for Donald Trump can ensure a prolonged climb, while a loss can cloud growth prospects.
(With inputs from Reuters)