DJT Shares Up Double Digits as Election Day Begins (Video)

Trump Media & Technology Group shares (JT) was up more than 10% in early trading on Tuesday. extension of double-digit percentage growth to the beginning of the week while investors are preparing for more volatility ahead of Election Day in the United States.

Shares suffered largest percentage decrease last week and closed down about 20%, ending a five-day period Friday, knocking about $4 billion off its market capitalization. The stock is still more than double from its September lows.

The recovery in stocks comes as the outcome of the presidential election between Republican candidate Donald Trump and Democratic candidate Kamala Harris awaits.

Stock volatility is expected to continue. One investor warned that if Trump loses the election, DJT shares could fall to $0.

“This is a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance. Catalysts.

Read more: Trump vs. Harris: 4 Ways the Next President Could Impact Your Bank Accounts

Tuttle, who currently holds put options on the stock, said the stock’s trajectory depends on a “buy the rumor, sell the fact” trading strategy.

“I can imagine the day after he wins you’ll see that happen,” he suggested. “If he loses, I think he’ll go down to zero.”

Interactive Brokers chief strategist Steve Sosnick said DJT has taken on a “life of its own” as a meme stock.

“It was volatile on the way up, and when a stock is that volatile in one direction, it tends to be just as volatile in the other direction,” he said during a call with Yahoo Finance last week.

Before recent stock volatility, the company—home of the Republican candidate’s social network Truth Social— has been growing steadily in recent weeks as both domestic and foreign betting markets shifted in favor of a Trump victory.

Forecast sites such as Polymarket, Predict itAnd Kalshi all of them showed that Trump’s presidential chances exceed those of the Democratic Party candidate and current Vice President Kamala Harris. However, that lead narrowed significantly over the weekend as new polls showed Harris surpassing Trump in Iowa, who has historically voted Republican.

And as the betting markets tighten, national polls show both candidates in a virtually deadlocked race. Opinion polls in key battleground states such as Pennsylvania, Michigan and Wisconsin, which are likely to decide the election, also show minimal differences.

In September promotions was trading at its lowest level since the company’s debut. after the widely publicized lockout period expired. The stock has also been under pressure since previous polls in September showed Harris leading the former president.

Trump founded Truth Social after he was kicked out of major social networks such as Facebook (META) and Twitter, now X, following the January 6, 2021 Capitol riot. Trump has since been reinstated on those platforms. He’s officially returned to publishing on X in mid-August after about a year’s break.

As Truth Social tries to compete with social media players, the company’s fundamentals have long been in question.

In August JT reported Second-quarter results showed a net loss of $16.4 million, about half of which was related to expenses related to the company’s SPAC transaction. The company also reported revenue for the quarter ended June 30 of just under $837,000, down 30% year over year.

Last month the company disclosed that its chief operating officer resigned in September.

Trump adheres to approximately 60% percent in JT. At current levels of around $39 per share, Trump Media boasts a market capitalization of about $7.8 billion, giving the former president a stake worth about $4.7 billion.

Alexandra Channel is a senior reporter for Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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