Shares of Trump Media & Technology Group, the social media company founded by former U.S. President Donald Trump, surged as early results from the U.S. presidential election began to roll in. The stock rallied 10% by the close of formal after-hours trading on Tuesday, the US Election Day.
The upward momentum continued during special late trading on the Robinhood platform, with the stock soaring approximately 43%, reaching over $48 per share.
Trump Media & Technology Group Corp.’s stock is often seen by investors as a barometer for Donald Trump’s political prospects, especially as he seeks re-election in a closely contested race against Democratic Vice President Kamala Harris. The stock has experienced significant volatility throughout the election period, reacting to fluctuations in Trump’s electoral fortunes, according to Bloomberg.
The recent surge is part of a broader trend of heightened volatility, with the stock moving at least 10% in either direction over the past eight sessions. During regular late trading, more than 19 million shares were traded as investors closely monitored incoming election results, the report added.
If the gains on Robinhood’s platform carry over into regular trading, Trump Media & Technology Group’s valuation could reach approximately $10.6 billion. This surge in value would significantly impact former President Donald Trump’s personal wealth, potentially boosting his net worth by $1.7 billion, given his substantial holding of nearly 115 million shares in the company.
Trump Media shares more than doubled in October, driven by betting markets favoring Donald Trump’s chances. The company’s valuation now exceeds that of established firms like Whirlpool Corp. and Harley-Davidson Inc., despite generating less than $1 million in revenue during the second quarter.
Trump Media Q3 Results
Trump Media & Technology Group reported a net loss of $19.2 million in the third quarter, due to legal fees and costs tied to its TV streaming deal. The company said the figure includes $12.1 million in legal fees in the quarter, stemming from its acquisition of TV streaming technology in August and residual fees related to its SPAC deal in March.
The company’s revenue was $1 million for the quarter ended September and had cash and cash equivalents of $672.9 million, including short-term investments, with no debt.
(With inputs from Bloomberg News)
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Business NewsMarketsStock MarketsTrump Media share price surge 40% overnight on Robinhood amid speculation of Donald Trump’s election win
