Posted by Shares in Trump’s media group leap after assassination attempt
Bitcoin also rises as odds improve of Trump victory in November presidential election
Mon 15 Jul 2024 13.02 CEST Last modified on Mon 15 Jul 2024 13.49 CEST
Shares in Donald Trump’s media company have surged by 50% in pre-market trading after the attempted assassination of the former US president, potentially adding nearly $3bn (£2.3bn) to the valuation of the business behind the X rival Truth Social.
Trump Media and Technology Group, which uses Trump’s initials DJT as its ticker, has been a volatile stock since its debut on 26 March this year.
However, traders are set to push the share price back towards levels not seen since May after the attack on Saturday night increased Trump’s chances of winning November’s presidential election.
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At one point on Monday the company’s shares were up by 71% in pre-market trading – a period of buying and selling shares before stock markets open officially.
The shares were trading at a 50% gain on Friday’s closing price of $30.89 at the time of publication, according to Google Finance data. If that move is replicated when trading opens on Monday, the price gain would add about $3bn to the company’s valuation.
Trump Media is 60% owned by the former US president, meaning the value of his stake, worth about $3.8bn on Friday, could rise by as much as $2bn.
Neil Wilson, the chief analyst at the brokerage company Finalto, said the share price move was a “bet on Trump” and the widespread perception that the shooting had improved the ex-president’s chances of regaining the White House in November.
“DJT is moving on Trump’s improved odds of winning. But it’s also because you think more people will be drawn to the platform to access a re-elected Trump,” he said.
Trump launched Truth Social after being banned from mainstream social media in the wake of the 6 January Capitol riots. Although he has been reinstated on Facebook, Instagram and X, Truth Social remains a cornerstone of his social media strategy.
Trump Media reached a high of more than $79 on 26 March when it started trading in New York, before hitting a closing low of $22.84 on 16 April as Trump’s criminal hush-money trial began. Trump was later found guilty of the charges.
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