On Monday, Donald Trump’s social media venture, Trump Media & Technology Group, experienced a notable 12% increase in its stock value, just a day prior to the presidential election. Since its public debut, the stock has exhibited significant volatility, often serving as an indicator of Trump’s perceived likelihood of reelection. The precise catalyst for Monday’s rise remains ambiguous, as the company’s shares are not fundamentally driven, given their relatively minor scale compared to leading social media platforms such as X, TikTok, and Instagram.
Market experts have connected the recent uptick in stock prices to shifts in online betting markets, which suggest Trump holds an advantage over Vice President Kamala Harris in the ongoing race. As Harris’s prospects improved within these betting contexts, the value of Trump’s media stock began to decline. However, the gains on Monday translated to an increase of over $400 million in Trump’s net worth.
The broader financial market witnessed some fluctuations on Monday, albeit not as pronounced as those observed with Trump Media’s stock; the Dow fell by 0.6%, while the S&P 500 and Nasdaq both saw declines of 0.3%. With the first polls commencing across the U.S. on Tuesday, shares of Trump Media and Technology Group experienced another pre-market surge of 12%. This increase reflects renewed investor enthusiasm leading up to the election, with the stock acting as a proxy for Trump’s contest against Harris.
The trading pattern of DJT stock is largely influenced by Trump’s passionate core supporters, categorizing it as what Morningstar’s Vice President of Research, John Rekenthaler, terms an “affinity stock.” Despite the observed volatility, no substantial updates regarding Trump Media’s operations have been communicated. Over the past month, the stock has skyrocketed nearly 90%, adding billions to the organization’s market valuation and enhancing Trump’s net worth due to his approximately 57% ownership stake. Trump has indicated he intends to retain his shares.
Rekenthaler cautioned that Trump Media’s stock might face repercussions if the Republican candidate were to lose the election; conversely, if Trump were to win, the stock’s future performance could be unpredictable.
Stock fluctuations affect Trump’s financial standing
As vote counting continues, national as well as swing state surveys indicate a closely contested battle between Harris and Trump.
Donald Trump’s net worth has doubled in October, rising from just under $4 billion at the month’s start to $8 billion by Tuesday. This increase coincides with a surge in the stock of Trump Media & Technology Group. On Tuesday, Trump Media’s stock closed at $51.51, almost a 9% increase, which marks a significant rise from $16.16 at the beginning of October.
This remarkable increase in stock price has led to a substantial boost in Trump’s net worth. The rise appears to be primarily influenced by his climbing odds in the election rather than any immediate enhancements in Trump Media’s financial performance. Investors seem to be adopting a more favorable outlook on Trump’s electoral chances, which is reflected in soaring stock prices.
Trump’s financial standing has exhibited marked volatility corresponding with the performance of Trump Media’s shares. Just five weeks ago, the stock reached a low of $12.15 but has seen a fourfold increase since. The stock began to recover considerably after Trump publicly committed to retaining his 57% interest in the business.
Recent stock performance has returned to levels last seen in March and May, following its introduction on the Nasdaq. The increase in Trump’s net worth emphasizes the volatile characteristics of the stock market, especially influenced by political dynamics. As Trump’s prospects in the presidential race gained traction, the stock price of the media company, and thereby his net worth, surged significantly.
