The price of TMTG shares increased sharply after former president Donald Trump suffered an assassination attempt.
Shares of the Trump Media & Technology Group (TMTG) surged over 51% in premarket trade on Monday following the assassination attempt on the former President. Donald Trump suffered a non-lethal injury following a shooting during his campaign rally in Butler, Pennsylvania on July 13.
The shooter nearly missed Trump’s head, grazing the former president’s ear. He was immediately escorted out of the stage when he was immortalized with his fist pointing upward.
Wall Street analysts believe the attempt increases Trump’s chances at reelection in November when the US general elections are scheduled. “The events on Saturday, if they do anything, they strengthen the case for President Donald Trump to win the election in November,” Rob Casey, partner at Signum Global Advisors, told CNBC, “I think that’s what the markets have reacted to this evening.”
TMTG is the parent company of Truth Social, Trump’s flagship social network. The former president created Truth after he was banned from most legacy social media, including Twitter and Facebook. Trump’s account on these platforms was restricted after his alleged endorsement of the January 6th, 2021 assault on Capitol Hill.
Truth uses a similar layout to Twitter and has roughly 2 million monthly active users, TMTG claims. In its last quarterly report, TMTG posted $770,500 in revenues against $327.6 million in net losses.
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Most analysts link TMTG’s fortune to Donald Trump’s personal achievements. As a company, TMTG lacks the necessary requirements to justify its $7.64 billion market evaluation. It’s unclear how long TMTG can sustain its losses before filing for bankruptcy.
The company admitted that if Trump started posting on any other social network it “could have a material adverse effect on the business and/or operations of TMTG.” Donald Trump is the largest shareholder of TMTG, boasting a total net worth of $5.3 billion.
TMTG’s CEO David Nunes dubbed Saturday’s assassination attempt as “cowardly” and called “for the federal government to provide any security resources requested by President Trump to guarantee his safety.”
The company’s shares have been incredibly volatile since TMTG went public in March. It went from its highest of $97.54 per share in March to its lowest of $13.08 in April. One TMTG share currently trades at $46.80 in premarket trade.
Donald Trump could not sell his TMTG shares for the first six months following the company’s IPO. That limitation expires in September, right before the most intense phase of the electoral campaign.
