The recent debate performance of President Joe Biden has given a boost to former President Donald Trump’s social media company, Truth Social. On Friday, the shares of Trump Media & Technology Group, the owner of Truth Social, increased by 4% in early trading as investors saw a potential increase in Trump’s chances of returning to the White House.
Trump, who serves as the chairman of Trump Media and is the leading shareholder, is also the most popular user on Truth Social. The stock’s symbol is “DJT,” reflecting the former president’s initials. Despite generating little revenue and having a small platform like Truth Social, the stock is valued at over $6 billion.
The stock price of Trump Media is heavily influenced by news related to Donald Trump, such as his legal issues and his debate performance. Some see the stock as a way to fund Trump’s potential presidential campaign, while others believe its long-term success depends on Trump’s chances of being reelected. Analysts suggest that the share price may be inflated by the possibility of Truth Social becoming the primary platform for presidential communications if Trump were to win.
With discussions among Democrats about Biden’s potential resignation and some of the president’s allies not denying it, money is flowing into Trump Media’s stock. By Friday morning, it had increased from $4.2 billion at end of trading on Thursday to $4.6 billion – an increase that reflects investor optimism surrounding Trump Media’s potential success linked to Trump’s political future.