On Tuesday, Trump Media shares rose to almost 19%, resulting in the operator of Truth Social to settle with a four-day winning streak, its longest since June.
At some point, DJT shares shot up to $22 in a high-trading-volume session, practically 90% higher than $11.75 per share during the company’s intraday low on Sep. 24. Tuesday trading ended at $21.80 per share, or 18.5% increase, with as many as 45 million stocks changing hands yesterday. The trading volume was more than triple its 30-day average.
However, the company’s stock prices remain below their peak of $79.38, which occurred during the company’s debut on Nasdaq in late March.
The owner of the company’s majority, Donald Trump, held a presidential campaign rally on Saturday near Butler, Pennsylvania, the very same site of the failed assassination attempt on him. This action has helped accelerate the company’s stock rally since Saturday.
Trump’s rally near Butler drew in many of his supporters, including Elon Musk, Tesla CEO and soon-to-be trillionaire, who endorsed Trump as a presidential candidate right after the July assassination attempt.
Despite a positive outlook of the company in the stock market, Trump Media has been hit with a stream of bad news that may raise concerns about the company’s stability.
Firstly, the news that Andrew Northwall, chief operating officer, had resigned in late September with no specific reason, and the company has yet to pick his replacement.
Second, Sandro de Moraes, chief product officer, also resigned along with a considerable number of low-level employees.
Lastly, according to Thursday’s filing with the Securities and Exchange Commission, Trump Media is transferring almost 800,000 shares of common stock to ARC Global Investment II, an investor that took Trump Media public through a merger, in a move that follows the judge’s ruling the company has breached a stock agreement with ARC Global.
Trump owns almost 57% of Trump Media worth nearly $2.5 billion as of Tuesday, and he has vowed not to sell his shares.
Trump Media’s two most recent quarterly reports show that the company has a net loss of around $340 million compared to its revenue just shy of $2 million. Its Truth Social Media platform only drew just barely a fraction of the industry’s average, but despite all the losses the company still prides itself on a market capitalization of greater than $4 billion.
Trump Media is viewed by some analysts as a channel for retail investors to support the former president or bet on his odds to win the November’s election against his new rival from the Democrat, Kamala Harris.
