Donald Trump’s media company, Trump Media & Technology Group, has experienced a dramatic recovery on Wall Street after a prolonged slump. The stock, which owns the social media platform Truth Social, had plummeted to a record low of $12.15 on September 23, marking an 82% decline from its peak. However, in a sharp turnaround, the stock has surged by nearly 150% in just three weeks, more than doubling its value. This momentum continued last week with a 50% spike, followed by an 18% jump on Monday, pushing Trump Media back into the spotlight as a highly volatile “meme stock.”
What’s surprising about this rally is that it has not been driven by any major corporate announcements, new products, or endorsements from financial analysts. Instead, the stock’s revival is largely attributed to rising speculation about Trump’s chances of winning the upcoming presidential election. With the race tightening in recent polls and betting markets shifting in Trump’s favor, traders are increasingly viewing Trump Media as a proxy for the election. According to market experts, the stock’s future hinges heavily on Trump’s political fortunes—either thriving with a win or potentially crashing if he loses.
Trump’s deep connection to the company has also played a pivotal role in this stock surge. As the face of Truth Social and its largest shareholder, with 114.75 million shares, Trump’s stake in the company is directly influenced by his popularity. Since September 23, the value of Trump’s holdings has skyrocketed by $1.7 billion, bringing his total stake to $3.4 billion. The recent spike has caught the attention of Wall Street, with analysts describing it as “stunning,” especially given the stock’s previous performance.
Some experts remain cautious about the long-term prospects for Trump Media. Jay Ritter, a finance professor from the University of Florida, noted that the current stock price, while inflated by election-related speculation, is not supported by the company’s financial fundamentals. He argues that Trump Media lacks a sustainable business model and warns that the stock’s value could eventually drop by as much as 90%, given that it is trading far above its intrinsic worth. Ritter’s assessment points to a future correction unless the company finds a way to generate profits.
Despite these concerns, Trump has resisted selling any of his shares, a move that has provided additional confidence to traders. Many had speculated that Trump might offload his stock after the expiration of insider lock-up restrictions, but Trump has publicly stated that he has no plans to sell, reinforcing investor optimism. This refusal to sell has bolstered the ongoing rally, with many investors betting that Trump’s potential return to the White House could significantly boost the company’s future.
