Shares of Trump Media & Technology (DJT), the parent company of Truth Social, surged on Monday following an attempted assassination on former President Donald Trump over the weekend. In a related political development, Tesla (TSLA) CEO Elon Musk officially endorsed Trump for the 2024 election on Saturday. Tesla’s stock also saw a rise on Monday.
DJT stock climbed more than 30%, reaching 41.40 during Monday’s market session and hitting an intraday high of 46.27, its highest level since early June.
The stock had surged by 50% pre-market after gunshots were fired during a Saturday rally. Trump, apparently injured with bleeding from his ear, was quickly escorted off the stage by security. Authorities are investigating the incident as an assassination attempt.
Additionally, a federal judge dismissed the indictment in the classified documents case against Trump on Monday, citing improper appointment of the special counsel, as per a court filing.
The value of DJT stock is closely tied to the Trump brand, with Truth Social being launched after Trump’s Twitter account was suspended following the January 6, 2021, Capitol riot.
Following the assassination attempt, Trump garnered several high-profile endorsements from the business and investment community, including from Elon Musk and Bill Ackman.
“I fully endorse President Trump and hope for his rapid recovery,” Musk posted on X, formerly known as Twitter, on Saturday. In response, Tesla stock increased 1.8% to 252.64 on Monday, peaking at 265.60 intraday, having already surged more than 25% in July.
The Trump Stock: Cash Strapped But Surviving
Trump Media recently reported raising over $105 million through the exercise of stock warrants from June 20 to July 1, according to regulatory filings. Despite this, the company has been facing significant cash flow challenges.
As of July 1, Trump Media held over $350 million in cash with no debt, according to DJT’s disclosures. This follows a period of heavy cash outflows.
In April, the company filed a “preliminary prospectus” with the U.S. Securities and Exchange Commission (SEC) to offer 21.49 million shares of common stock, issuable upon the exercise of warrants.
By May, Trump Media & Technology reported another quarterly loss, with revenues again falling short of the $1 million mark. The company reported an adjusted EBITDA loss of $12.1 million, with more than half attributed to one-time payments related to its March merger with Digital World Acquisition Corp.
Revenue for the quarter was $770,500, making it the second consecutive quarter under $1 million. The company reported a GAAP loss of $327.6 million, largely due to $311 million in noncash expenses from converting promissory notes and eliminating previous liabilities.
Despite these losses, the company expressed confidence in its financial stability, stating it had “sufficient working capital to fund operations for the foreseeable future.”
Trump Media’s stock rose over 16% on March 26, its first trading day under the DJT ticker, peaking at 79.38 intraday. This followed the successful merger with Digital World Acquisition Corp. on March 22, which saw a 35% rally in SPAC company stock before its rebranding to DJT.
For the year, DJT/DWAC has gained 77%, with Trump holding nearly a 65% stake in DJT.
Please follow Kit Norton on X @KitNorton for more coverage.
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