Trump Media & Technology Group’s stock (DJT) continued its upward trajectory on Monday, soaring by as much as 20% after Donald Trump’s controversial rally at Madison Square Garden over the weekend. The increase comes as investors are optimistic about Trump’s prospects in the upcoming November election.
Currently, the stock is performing at its highest point since mid-July, reflecting a staggering 235% increase from its lows in September. Other stocks associated with Trump also experienced gains; Phunware (PHUN), a mobile advertising software company linked to him, rose over 3%, while video platform Rumble (RUM) saw a jump of more than 6%.
The rally, however, drew criticism from both political factions due to comedian Tony Hinchcliffe’s offensive jokes targeting Latinos and the African American community, alongside a focus on anti-immigration statements.
Despite the current surge, analysts warn that the rise in DJT stock may not be sustainable. Matthew Tuttle, CEO of Tuttle Capital Management, cautioned that if Trump does not win the election next week, the stock could crash to zero. Tuttle, who holds bearish options on the stock, indicated that trading patterns suggest a “buy the rumor, sell the fact” approach might apply here.
Tuttle speculated that if Trump secures victory, the stock would likely decline the following day. Conversely, he believes a loss would result in a significant drop.
The uptick in DJT stock coincides with a shift in both national and international betting markets favoring Trump over his Democratic opponent, Vice President Kamala Harris. Sites such as Polymarket, PredictIt, and Kalshi currently show Trump as having better odds of winning the presidency.
Nevertheless, national polls indicate a neck-and-neck race between the two candidates, particularly in crucial battleground states like Pennsylvania and Michigan, likely pivotal in determining the election outcome.
This rally in shares comes after they hit their lowest point since the company went public, following the conclusion of a much-publicized lockup period last month. Earlier polls in September had notably shown Harris slightly ahead of Trump.
Recently, Trump’s campaigning has gained momentum, highlighted by a visit to a local McDonald’s in Pennsylvania and a rally appearance by Elon Musk in Butler, Pennsylvania, where Trump narrowly escaped an assassination attempt in July.