Trump Media Stock Soars Up to 19%, Extending Longest Rally Since June

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Shares of Trump Media surged by as much as 19% on Tuesday, marking the fourth consecutive day of gains for the operator of the social media platform Truth Social. This rally represents the stock’s longest upward streak since June, as investor enthusiasm grows around the company and its owner, Donald Trump.

At one point, Trump Media stock (DJT) climbed to $22 per share during heavy trading, a significant rise from its intraday low of $11.75 on September 24. This gain puts the stock nearly 90% higher than its low from just two weeks ago, though it remains well below its peak of $79.38, which it hit during its debut on the Nasdaq in late March.

As of 2:30 p.m. ET on Tuesday, more than 34 million DJT shares had been traded, nearly triple the stock’s 30-day average volume.

The stock’s rally accelerated following Trump’s presidential campaign rally near Butler, Pennsylvania, this past Saturday. The rally, held at the same location where Trump survived an assassination attempt in July, drew thousands of supporters. Tesla CEO Elon Musk was also in attendance and publicly endorsed Trump’s campaign, calling him essential to preserving democracy in the U.S. Musk’s endorsement is believed to have contributed to the recent surge in stock price.

However, the stock price surge comes amid news that might otherwise raise concerns about the company’s well-being. On Thursday, Trump Media disclosed that its chief operating officer, Andrew Northwall, resigned in late September, though no reasons were provided, and no successor has been announced. Additionally, Sandro de Moraes, the company’s chief product officer, confirmed his departure via Truth Social. According to a ProPublica report, several other lower-level employees have also recently left the company.

Despite these executive shake-ups, Trump Media continues to attract investor attention. Thursday’s filing with the Securities and Exchange Commission (SEC) revealed that Trump Media handed over nearly 800,000 shares of common stock to ARC Global Investments II, an early investor, following a legal ruling that the company had breached a stock agreement.

In late September, a company controlled by Trump Media’s co-founders sold nearly all of their 11-million-share stake in DJT stock, shortly after early investors, including Trump, were permitted to sell their shares. However, Trump himself, who holds nearly 57% of Trump Media, has pledged not to sell his stake, which is currently valued at approximately $2.5 billion.

While Trump Media has posted net losses exceeding $340 million on less than $2 million in revenue over the past two quarters, the company still boasts a market capitalization of more than $4 billion. Truth Social, its flagship platform, attracts a relatively small audience compared to social media giants like X (formerly Twitter) and Facebook, yet many analysts view Trump Media as an investment tied to Trump’s presidential bid and political influence.

As Donald Trump continues his campaign, some retail investors are seeing Trump Media as not only a business but also a way to support the former president’s path to victory in the 2024 election.