Shares of Trump Media and Technology Group (DJT, Financials) surged up to 47% early Wednesday after Donald Trump secured a second term by defeating Democrat Kamala Harris in the 2024 U.S. presidential election.
DJT showed notable volatility on Election Day, surging as much as 17% and setting off many trade pauses before closing on Tuesday. With advances between 27% and 30%, the stock settled by Wednesday morning; around 39 million shares were exchanged before the market opened, roughly 1.4 times its three-month average trading volume.
Nasdaq figures show that DJT's float has short interest of 20.77%. DJT shares, year-to-date, have almost doubled, surpassing the 21% increase of the S&P 500 index over the same period.
On revenue of $1 million, Trump Media revealed in its third-quarter earnings report on Tuesday an operating loss of $23.7 million and a net loss of $19.2 million; the media company has no debt and finished the quarter with $673 million in cash and investments.
Over $12 million in legal fees linked to the company's acquisition of TV streaming technologies and a special-purpose acquisition company deal affected its financial situation. Research and development also consumed $3.9 million.
Notwithstanding these financial difficulties, the performance of the stock shows investor hope following the triumph of Trump. With notable volatility during the election cycle, analysts note that DJT's stock swings are tightly related to Trump's political fortunes.
Political events and investor mood will probably still affect Trump Media's future success as it negotiates its financial terrain.
