Trump Media & Technology Group stock (DJT) was briefly halted for volatility in late afternoon trading on Tuesday as investors brace for more wild swings with Election Day underway within the US.
Shares quickly erased 15% gains and reversed Monday’s double-digit percentage rise to kick off the week. The stock somewhat recovered heading into the close, rising about 5%.
Shares suffered their largest percentage decline last week and closed down around 20% to finish the five-day period on Friday, which shaved off around $4 billion from the corporate’s market cap. The stock has still greater than doubled from its September lows.
The newest price motion comes as investors await the outcomes of the presidential election between Republican nominee Donald Trump and Democratic candidate Kamala Harris.
Volatility within the stock is predicted to proceed. One investor has warned that if Trump loses the election, shares of DJT could plunge to $0.
“It is a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance’s Catalysts.
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Tuttle, who currently owns put options on the stock, said the trajectory of shares hinges on “a buy the rumor, sell the actual fact” trading strategy.
“I’d imagine that the day after him winning, you’d see this come down,” he surmised. “If he loses, I believe it goes to zero.”
Interactive Brokers’ chief strategist Steve Sosnick said DJT has taken on a meme-stock “lifetime of its own.”
“It was volatile on the best way up, and when a stock is that volatile in a single direction, it has a bent to be that volatile in the opposite direction,” he said on a call with Yahoo Finance last week.
Prior to the recent volatility, shares in the corporate — the house of the Republican nominee’s social media platform, Truth Social — had been steadily rising in recent weeks as each domestic and overseas betting markets shifted in favor of a Trump victory.
Prediction sites like Polymarket, PredictIt, and Kalshi all showed Trump’s presidential probabilities ahead of those of Democratic nominee and current Vice President Kamala Harris. That lead, nevertheless, narrowed significantly over the weekend as recent polling showed Harris surpassing Trump in Iowa, which has historically voted Republican.
And as betting markets tighten, national polls show each candidates in a virtually deadlocked race. Polls in key battleground states like Pennsylvania, Michigan, and Wisconsin, that are likely to come to a decision the fate of the election, also show razor-thin margins.
