Shares of Truth Social reached all-time highs one week before the nationwide election.
Shares of the Trump Media & Technology Group (TMTG) rallied on Monday as Republican candidate Donald Trump’s campaign momentum increased. The 2024 US elections will be held next week on November 5th, and the next White House tenant will be decided by 2028.
Donald Trump held a rally in New York City over the weekend, attracting enough people to call it a success for TMTG investors.
TMTG is the parent company of Truth Social, Trump’s flagship social media platform, which officially went public last April. Investors now price in a Trump victory at next week’s elections against Democratic candidate Kamala Harris.
Truth Social, traded on the NYSE with the ticket “DJT”, reported in August over $16.4 million in net losses. Revenues for the quarter reached $836,000.
With its market capitalization at over $9.35 billion, analysts and experts consider TMTG to be extremely overvalued, without the revenues and fundamentals to justify its stock evaluation.
“It’s a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, told Yahoo Finance’s Catalysts show on Monday. “I would imagine that the day after him winning, you’d see this come down,” he speculated. “If he loses, I think it goes to zero.”
Election chances
Exactly one week before the election, nationwide polls show an incredibly tight race. Kamala Harris retains a very narrow advantage, well within the margin of error. In Pennsylvania, considered the most important state to win over by most analysts, polls essentially show a tie.
One month ago, Kamala Harris retained a larger lead over Trump and was considered the favorite to win. Now, the race is considered too close to call.
As DJT investors increasingly believe Donald Trump will win, the stock price continues its rally.
On Monday, TMTG rose by 21.62% to $47.27. Year-to-date, the stock gained 172.84%.
TMTG’s stock went through several moments of high volatility, getting as low as $12.15 on September 23rd. According to Trump’s deal with TMTG’s board, he’s not allowed to sell the stock if it falls below $12.
Donald Trump owns 57% of TMTG’s shares. He promised he would not sell the stock before the election despite the high costs linked to a presidential campaign.
So far, Donald Trump kept his promise, and it’s extremely unlikely he would sell the stock before the November 5 vote. What happens after the vote, however, is completely unpredictable.
