DJT Rally Sparks Stock Increase for Trump Media After Elon Musk Calls for People To Vote

Key Takeaways

• Trump Media & Technology Group’s stock has experienced impressive gains, surging by 32%.
• The increase follows Elon Musk’s speech at Donald Trump’s rally in Pennsylvania.
• However, financial data shows the company is plagued by high operating costs.

Trump Media & Technology Group’s stock has experienced a remarkable surge after Elon Musk endorsed Donald Trump at a recent rally in Pennsylvania.

The stock recorded a double-digit growth in a few hours. Despite that, its data show it has to escape a turbulent financial situation.

Trump Media Shares Rise

Trump Media & Technology Group’s stock has recorded two consecutive sessions of significant gains. The stock of Truth Social’s parent company trades under the ticker DJT  and was down by 0.6% to $21.68 during pre-market trading. However, it has surged by an impressive 32% since Monday.

While the exact reasons for this upward momentum remain unclear, Tesla CEO Elon Musk’s appearance at a Trump rally on Saturday may have played a pivotal role in boosting investor sentiment.

Musk’s statement, “I’m not just MAGA—I’m dark MAGA,” resonated with supporters of the Republican candidate, showcasing the support from the world’s richest man.

However, the sustainability of this rally is uncertain, as Trump Media’s shares seem to be trading at a valuation disconnected from conventional financial metrics such as projected cash flows and price-to-earnings ratios. Truth Social continues to operate as a niche player in the social media landscape. In August, Trump Media reported quarterly sales of only $837,000 and a net loss of $16.4 million for the first half.

Musk Joins Trump on Stage

In his first campaign appearance with Donald Trump, Elon Musk urged voters to register, framing Democrats as a serious threat to democracy. “Get everyone you know—and even those you don’t know—to register,” he told  the crowd at the rally in Butler, Pennsylvania.

“There are only two days left to register in Georgia and Arizona. Text people right now. If they don’t vote, this could be the last election. That’s my prediction.”

Musk, who has endorsed Trump and formed a super PAC supporting the campaign, painted a dire picture for the election. He asserted that Trump’s opponents aim to undermine essential freedoms, including speech and voting rights.

The rally took place at the site of a recent assassination attempt against Trump, who honored a firefighter shot at a previous event and thanked the Secret Service for their protection. The event featured notable speakers, including Ohio Senator JD Vance and Eric Trump.

DJT Stock Overview

As of the latest trading data, DJT stock showed volatility after the Trump-Musk rally. The stock has exhibited a day’s range between $18.32 and $22.12, indicating significant intraday fluctuations. The volume traded was exceptionally high at nearly 46.9 million shares, significantly above the average volume of approximately 10.8 million. This increased trading activity suggests heightened investor interest, likely influenced by recent events or news surrounding the Trump Media & Technology Group.

The bid and ask prices reflect a market still trying to find equilibrium, with a bid at $20.20 for 300 shares and an ask at $23.24 for 200 shares. This spread of approximately $3.04 shows that the market is experiencing uncertainty regarding the stock’s value, and traders are navigating this volatility carefully.

With a current market capitalization of $4.36 billion, DJT has positioned itself as a small-cap stock. The stock’s five-year beta of 5.83 signals that it is more than five times as volatile as the market, making it susceptible to larger price swings in response to news or market changes.

Despite generating revenue, the company – in which Donald Trump holds the majority – appears to be plagued by high operating costs, leading to mounting losses. The tax provision of just $1.10 indicates minimal tax liability, likely due to the losses, which may hinder the company’s financial recovery in the near term.