Donald Trump, the Republican presidential nominee and former President, is set to hold a rally at Madison Square Garden in New York on October 27, 2024. This event comes at a time when Trump’s social media company, Trump Media, has seen a significant rebound in its stock value. Following a steep decline in September, when shares dropped below $12, the company’s stock surged over 21% on Monday after Trump’s rally, closing at $47.36 per share. This rise in stock price surpasses its mid-July peak, which was driven by heightened media attention after a near-assassination incident involving Trump.
Trump boasts a nearly 57% ownership stake in Trump Media, equating to about $5.4 billion at the highest point on Monday, representing a substantial portion of his net worth as estimated by Forbes. The value of his stake has increased by approximately $4 billion since the stock hit its lows in late September. During this period, Trump Media launched a new streaming app called Truth+ and announced the resignation of its chief operating officer.
However, analysts suggest that the company’s market value and stock fluctuations may not correlate closely with its actual business performance or revenues from Truth Social, which has struggled to generate substantial income. Instead, many view the stock as a means for pro-Trump investors to express their support for the former president and to speculate on his chances of winning back the presidency.
The recent surge in Trump Media’s stock coincides with a favorable shift in political betting markets, reflecting the heightened enthusiasm from supporters after the Manhattan rally, which attracted thousands in a predominantly Democratic area. Despite the excitement, critics have voiced concerns about potential manipulation within the election betting markets, as evidenced by reports of an individual using multiple accounts to create a significant pro-Trump position on betting platforms.