Shares of Trump Media & Technology Group (DJT, Financials) surged by double digits on Tuesday morning as voters head to the polls in the U.S. election.
Owned by former President Donald Trump, the company has witnessed increased activity as traders bet on the election result and any effects on the value of Trump Media.
Monday's stock rise marks a 12% gain after sharp losses last week. Despite Truth Social's minimal income and financial difficulties, investors are betting that a Trump win will raise the value of the company's major platform, Trump Media.
After Tuesday's trading advances, Trump Media—which only generated $1.6 million in income this year—is now valued at around $8 billion. This price fits nicely with big media firms like Paramount Global (PARA, Financials), which turned over $14 billion annually. Trump's controlling ownership in Trump Media amounts to 114.75 million shares, now valued at almost $4.5 billion, a significant rise from $1.4 billion in late September, when the price reached lowest points.
Along with large banks and Bitcoin, other stocks connected with what some analysts refer to as the "Trump Trade" soared Tuesday including shares of private prison companies Geo Group (GEO, Financials) and CoreCivic (CXW, Financials). Prediction markets have also changed to show more likelihood of a Trump triumph. Still, experts say the election is erratic and some models suggest a close contest.
