Trump Media & Technology Group is the company behind Truth Social, one of the hottest topics lately ahead of the 2024 U.S. election. While the company is hemorrhaging money and only generated some $837,000 last quarter, its value has ballooned to an amazing $9 billion. The value has tripled in just five weeks!
Mainly, the reason for this boom is that many believe former President Donald Trump would win the election. People are actually buying the stock like a “meme stock,” if you will, based on the news concerning the Trump Media rather than the actual operating profits of the company.
Trump Media & Technology Group stock
Gene Munster believes the value of Trump Media is resting mostly on election results. If Trump wins, company value will go into unprecedented heights, but he is going to lose, and it may depreciate to a significant degree.
With the recent resurgence in the stock market, many investors have lately paid more attention to election news. Based on the most recent surveys, Trump is ahead by a hair of his competitor, Vice President Kamala Harris.
However, despite the fairly high stock price, Truth Social has much fewer users than those leviathan platforms that entail Facebook and Twitter. This will drop to the ground, so quickly, if he does not win the elections because it is inalienably pegged to his value.
In one nutshell, full-on exhibition by Trump Media & Technology shows to what extent politics can take over the stock market.