Trump Media & Technology Group stock (DJT) surged as much as 25% on Wednesday as Donald Trump clinched victory over Kamala Harris within the presidential election. Shares pared gains throughout the trading day to shut around 6% higher.
With a win in Wisconsin, Trump secured the 270 electoral college votes needed to win, in accordance with the Associated Press. The Republican is now set to have the excellence of being the forty fifth and the forty seventh US president.
Trump maintains a roughly 60% interest in DJT. At current levels of around $36 a share, Trump Media boasts a market cap of about $7.2 billion, giving the previous president a stake value around $4.3 billion and making him roughly $500 million richer in comparison with where shares closed on Tuesday.
Shares in the corporate — the house of Trump’s social media platform, Truth Social — had risen around 25% in after-hours moves late Tuesday as Harris’s path to victory narrowed, then jumped again after the win was declared within the early morning on Wednesday.
The stock had a wild session within the run as much as the election. Trading was halted several times because of volatility, with shares quickly erasing 15% gains and reversing Monday’s double-digit percentage rise to kick off the week.
Strategists have categorized the stock as a binary bet on the election. Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance’s Catalysts that the trajectory of shares has hinged on “a buy the rumor, sell the actual fact” trading strategy.
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“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 an inclination to be that volatile in the opposite direction,” he said on a call with Yahoo Finance last week.
In September, shares in Trump Media traded at their lowest level because the company’s debut following the expiration of its highly publicized lockup period.
Shares had bounced back from their lows, though, as each domestic and overseas betting markets shifted in favor of a Trump victory.
Trump founded Truth Social after he was kicked off major social media apps like Facebook (META) and Twitter, now X, following the Jan. 6, 2021, Capitol riots. Trump has since been reinstated on those platforms. He officially returned to posting on X in mid-August after a couple of 12 months’s hiatus.
