Shares of Trump Media, the company behind the social media platform Truth Social, experienced a 5% surge at the opening bell on Friday following the first U.S. presidential debate. This surge is attributed by some investors to the belief that the platform could become a prominent voice for the former president if he is re-elected.
President Joe Biden and former President Donald Trump engaged in a heated exchange during Thursday’s debate, touching upon issues including abortion, immigration, and the January 6, 2021 attack on the U.S. Capitol.
Biden’s performance was widely perceived as inconsistent, particularly in the initial stages. He made repeated attempts to confront Trump, who countered Biden’s criticisms by promoting false claims about the economy, illegal immigration, and his role in the January 6 insurrection.
Citi analysts indicated on Friday that the news coverage surrounding the debate might spark heightened interest in Trump Media & Technology.
Trump Media & Technology’s stock has experienced significant fluctuations during Trump’s presidential campaign. The stock saw a substantial swing a day after Trump’s conviction in his hush money trial.
A New York jury found Trump guilty of falsifying business records in a scheme designed to illegally influence the 2016 election through hush money payments to a pornographic film actor who alleged an extramarital affair with Trump.
The stock, trading under the ticker symbol “DJT,” has exhibited remarkable volatility since its launch in late March. It has joined the ranks of meme stocks, which are known for their abrupt shifts from highs to lows as retail investors attempt to capitalize on upward price momentum at opportune moments.
The stock has tripled in value this year, frequently experiencing double-digit percentage moves both upward and downward within a single trading day. It reached a peak of nearly $80 during intraday trading on March 26. For comparison, the S&P 500 has gained nearly 10% year-to-date.
Trump Media & Technology reported in May that it incurred a loss exceeding $300 million during the previous quarter, as revealed in its initial earnings report as a publicly traded company.
