As the 2024 presidential election approaches, shares of Trump Media have seen a significant increase, with a rise of approximately 176% over the past month.
Trump Media, trading under the ticker symbol DJT, experienced notable gains in the last week of trading, with its share price climbing 31.7%, as indicated by data from S&P Global Market Intelligence. This growth coincided with the company’s Truth+ streaming service’s availability on multiple platforms and changing perceptions of Donald Trump’s chances in the upcoming presidential election.
On October 21, Trump Media announced the launch of its Truth+ streaming app on Apple’s iOS and Apple TV platforms. The following day, it expanded the service to devices operating on Alphabet’s Android TV platform, followed by a launch on Amazon’s Fire TV platform. While the app’s debut on these platforms likely contributed to the stock’s rise, the primary catalyst for the gains appears to be the increasing perception of Donald Trump’s favorable positioning in the presidential race. Some polls and political betting sites have shown a shift towards Trump over Vice President Kamala Harris, contributing to continued positive momentum for Trump Media’s stock.
In the short term, Trump Media’s stock may continue to fluctuate in response to developments in the U.S. presidential race. A victory for Donald Trump could further support bullish meme-stock trends for the company; however, a loss could trigger a significant decline in its stock value. Despite the recent surge in shares, the gains do not appear to be driven by the company’s core business fundamentals, as it reported just $828,000 in sales last quarter and is valued at approximately $7.7 billion.
For Trump Media to establish a sustainable business future, capitalizing on the visibility of the Trump brand would be crucial. Nevertheless, the company remains in an early stage, with valuations heavily reliant on speculative growth, potentially leading to major pullbacks once election-related and meme-stock factors wane.
Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board of directors. Keith Noonan holds no position in the stocks mentioned. The Motley Fool owns positions in and recommends Alphabet and Apple, as noted in its disclosure policy.
