Stock Market

Trump Media (DJT) Stock Climbs After First 2024 Presidential Debate

Trump’s win in his debate with Joe Biden helped DJT stock to a big gain overnight.

Source: rafapress /

Trump Media (NASDAQ:DJT) stock rose almost 10% overnight after the former president’s performance at his debate with President Joe Biden.

The stock was trading at over $40 per share early on June 28, and its market capitalization rose to $7.1 billion. However, it’s still down from its immediate post-IPO high of $49.

The Prize

Despite dodging questions and “being light on specifics,” particularly on economic matters, analysts gave Trump the victory in the debate, thanks to the incumbent’s halting performance.

Trump Media stock has been highly volatile. The underlying asset is nearly worthless, with little revenue and large losses. But that isn’t the point for traders. Instead, it acts as a proxy for the former president’s chances of returning to the White House, and those chances may be rising.

There are fundamentals, however. One is the possibility that Trump or other insiders could suddenly sell millions of shares. Shares are under a lock-up period that expires in September, but the board could waive it at any time.

There are also bullish fundamentals. The company expects to receive $70 million from the exercise of warrants and could receive as much as $247 million.

Fears of dilution drove the stock down below $27 on June 20. It traded as high as $66 in late March. Overall, shares have more than doubled the $20 they were trading at before the special purpose acquisition company (SPAC) spin-off in January.

But shares had been rising in the run-up to the debate, with the president’s fans confident he would win it. And it appears he did.

More precisely, the incumbent lost it. Biden seemed lost at times, looking at the moderators instead of the camera, often forgetting what he was about to say. Sure, Trump spewed brazen lies, but he spoke with confidence throughout the encounter. A CNN snap poll after the debate showed Trump winning it, 2-1.

DJT Stock: What Happens Next?

DJT stock will continue to be a proxy for the former president’s chances in November. Those chances appeared to rise last night, at least for now. The next debate is Sept. 10.

On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Source link

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign up now for breaking stock alerts

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.