Donald Trump’s media company has seen stock prices soar thanks to the shocking assassination attempt made at his campaign rally.
Assassination Attempt
The attempted assassination of presidential candidate Donald Trump on Saturday sent shockwaves through the world, and it wasn’t just politics and media that were affected by the event – Wall Street has been affected too.
Trump Media Surges
In particular, Trump Media, the media and tech company majority-owned by Donald Trump, saw its stock prices surge in the immediate aftermath of the shooting in Pennsylvania.
32% Rise on Monday
Trump Media & Technology Group saw its shares spike by a stunning 32% by the end of the trading day on Monday.
Almost 50%
Trump Media shares trade on the NASDAQ under the initials “DTJ” (President Trump’s own initials) jumped from $9.98 to as high as $46.27 – a nearly 50% surge – before falling to $40.58 before the end of the day.
Influencing Elections
The considerable surge in stock prices is hardly surprising, as many political analysts have suggested that the assassination attempt, and Trump’s survival, may be the catalyst that wins him a second term as US president.
Strengthening the Case
“The events on Saturday, if they do anything, they strengthen the case for President Donald Trump to win the election in November,” said Rob Casey, a partner at Signum Global Advisors, an independent advisory firm for policy and global markets. “I think that’s what the markets have reacted to.”
More Confidence in Trump
These spikes in stock prices signal increasing confidence in Trump’s ability to win the elections in November. Even before the shooting at his campaign rally, public opinion had begun to swing in his favor due to the presidential debates late last month.
Controversial Debate Performance
President Biden’s debate performance was broadly criticized for being “rambling” and even “incoherent” at points, compared to Trump’s more confident and assertive delivery.
Potential to Win
Since then, polling has leaned more in favor of Trump, and this recent situation may have clinched the November win for the former president.
“Political Peril” for Democrats
“The latest data makes it clear that the political peril to Democrats is escalating,” Sen. Peter Welch (D-Vt.), who publicly called for Biden to drop out of the race to make room for a new candidate. “States that were once strongholds are now leaning Republican.”
3 in 4 Chance to Win
Experts at the Economist have even predicted that he now has a 3 in 4 chance of winning following the news out of Pennsylvania.
Trump Win “Heavily Reflected in Certain Sectors”
“Investors are becoming more confident of a Trump victory, and it is starting to be more heavily reflected in certain sectors,” said Rick Meckler of Cherry Lane Investments.
Strong Republican Performance Expected
“[T]he events of the past few weeks — Joe Biden’s shockingly poor debate performance, followed by Saturday’s attempted assassination of Donald Trump — all but guarantee a strong Republican performance in November’s U.S. elections,” added Louis Vincent Gave, CEO of financial services firm Gavekal.
Volatile Performance from Trump Media
Trump’s company went public in March this year and has been remarkably volatile in the markets ever since.
Now Considered ‘Meme Stock’
It has even joined the ranks of ‘meme stock,’ referring to stocks that gain popularity (and derision) through social media announcements and trends.
Influenced by Social Media
Rather than focusing on company profits, policies, and growth projections as one would with a normal company, Trump Media’s value is largely influenced by Trump’s professional and personal life, and the media and social media headlines that follow him.
$300 Million Lost in the Last Quarter
Trump Media is now up 117% in 2024, despite reportedly losing more than $300 million in the last quarter, according to an earnings report in May.
Market Cap Reaching $8 Billion
This recent surge in the markets has raised Trump Media’s value by $1.9 billion, bringing its overall market capitalization to $7.8 billion.
Boosting Trump’s Net Worth
Trump, as the majority shareholder in the company with 114 million shares, now owns 4.7 billion worth of stock.
Elon Musk’s Support
Another recent announcement that certainly brings positive news for Trump, and possibly for Trump Media, was the news Tesla CEO Elon Musk will donate $45 million a month to America PAC, a famously pro-Trump political action committee.
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Featured Image Credit: Shutterstock / Evan El-Amin.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
