Trump Media’s stock price skyrocketed over 31% on Monday following an attempted assassination of the former president at a rally in Pennsylvania.
Shares for Trump Media & Technology Group (stock symbol: DJT), which is predominantly owned by former President Donald Trump, reached as high as $46.27, nearly a 50% increase, before closing the day at $40.58.
This spike in share price indicates growing investor confidence in Trump’s chances of winning the upcoming November election, according to analysts. Such an outcome would have notable implications for Wall Street.
“Investors are more confident in a Trump victory, and this confidence is increasingly reflected in certain market sectors,” said Rick Meckler, partner at Cherry Lane Investments, to Reuters. He noted that the broader market impact was more subdued.
Founded in response to Trump being banned from major social media platforms after the January 6, 2021 Capitol riot, Trump Media has experienced significant volatility recently. This includes criminal cases involving Trump and his participation in debates with President Joe Biden. The stock plummeted in June when regulators approved its registration statement, allowing investors to exercise warrants and the company to issue additional shares, increasing trading volume. Nonetheless, the stock surged later that month.
The parent company of the Truth Social app has been likened to meme stocks such as GameStop and AMC, which experience price surges driven by sentiment rather than financial fundamentals like revenue and cash flow.
Compared to other social media companies, Trump Media is considered overvalued by conventional Wall Street standards. The company reported first-quarter revenue of $770,500 and a net loss of $327.6 million.
With approximately 115 million shares, Trump’s stake in his company is currently valued at over $4.6 billion.
Other stocks showed growth as well.
Besides Trump Media, stocks in the crypto, prison, and gun sectors also rose on Monday. Notable gainers included Coinbase Global (up 11.4%), Marathon Digital (up 18.3%), and Riot Platforms Inc. (up 17.1%).
“Trump is viewed as pro-crypto, and the belief that he is now in a stronger position in the race for the White House has motivated traders to invest in assets likely to benefit if he returns to power,” investment analyst Dan Coatsworth told Reuters.
This market activity followed the attempted assassination of Trump at a rally in Butler, Pennsylvania, on Saturday. Authorities reported that a suspect fired at Trump with an AR-15-style rifle. Trump sustained a graze wound on his right ear and was swiftly evacuated by the Secret Service.
The suspected gunman was killed. A firefighter, Corey Comperatore, died, and two other men were injured at the event. President Biden and other officials condemned the shooting.
Contributing: Kinsey Crowley, Jessica Guynn, and USA TODAY staff; Reuters