President Joe Biden’s shaky debate performance led to a 4% increase in shares for Trump Media & Technology Group, the social media company founded by former President Donald Trump. This boost in shares shows investors’ confidence in Trump’s chances of retaking the White House.
Trump himself is the chairman and leading shareholder of Trump Media, where he is also the most popular user on the Truth Social app. The company’s stock symbol, DJT, is a nod to Trump’s initials. Despite Truth Social’s small size and limited revenue, Trump Media is valued at over $6 billion. Analysts suggest that Trump’s potential victory in the next election could make Truth Social the primary platform for presidential communications, which is contributing to the inflated stock price.
The stock value has been volatile for several reasons, including a recent transaction that allowed investors to buy additional stock, diluting other shareholders’ stakes. Some view this stock as a means of funding Trump’s potential presidential campaign, while others believe its success depends on Trump’s reelection chances. As of trading on Friday morning, Trump Media’s stake value stands at $4.6 billion, up from $4.2 billion at Thursday’s close. This increase reflects investor optimism about the company’s future prospects under a potential Trump presidency.