Shares of Trump Media & Technology Group (DJT, Financial) have surged as Election Day arrives, spiking nearly 15% today to reach nearly $40. With Donald Trump running a tight race against Democratic opponent Kamala Harris, Trump Media & Technology shares have become a proxy for his political chances, driven by both fervent speculation and strong support among his backers. The stock's value has mirrored Trump's climb in betting markets, with investors banking on his possible White House return, sending the share price to the top of the options market with expectations of a volatile 50% swing by week's end.
Despite recent product developments, such as the launch of the Truth+ streaming app, Trump Media's financial performance remains a point of concern. Last quarter, the company reported a modest $837,000 in revenue alongside a steep $16.4 million loss, signaling limited traction in a challenging digital media space. Trump Media's primary asset, Truth Social, has yet to establish a sustainable revenue base, and analysts point out that its operations aren't robust enough to justify the current $7.8 billion market cap, further heightening the risks associated with this election-fueled rally.
Market observers caution that Trump Media & Technology's value could plummet if Trump loses, highlighting the stock's vulnerability to election outcomes rather than operational success. “This stock is insanely overvalued,” said former Lehman Brothers VP Brian Lukow, who is betting on a price drop if Harris wins. While Trump's supporters remain optimistic about the company's potential media acquisitions and long-term growth, the reality is that a win for Trump might fuel further speculative gains, but a loss could expose the company's struggling fundamentals, triggering a swift sell-off.
