MW After Trump victory, 'DJT' shares resume rally while Phunware slides
By James Rogers
Shares of 'Trump trades' Phunware and Trump Media were heading in different directions in premarket trading
Shares of Trump Media & Technology Corp. and Phunware Inc. were heading in different directions in premarket trading two days after former President Donald Trump clinched victory in the U.S. presidential election.
Trump Media $(DJT)$, which operates the Truth Social social-media platform, fell initially in premarket trading before rising 1.8%. The stock ended Thursday's session down 23%. Shares of Trump-linked Phunware $(PHUN)$, which reported third-quarter results after market close Thursday, were down 8.9% premarket. The mobile-advertising company's stock ended Thursday's session down 13.6%.
Related: Several popular 'Trump trades' are taking a breather
Both stocks soared in recent weeks, with Trump Media viewed as a Wall Street proxy for Trump's election campaign. Phunware also has ties to Trump after developing and launching a mobile app for his 2020 re-election campaign. Earlier this week, the Austin, Texas-based company announced a deal to acquire a controlling stake in MyCanvass, a subsidiary of Campaign Nucleus, a software-as-a-service platform founded by Brad Parscale, who was the digital director of Trump's 2016 campaign and the manager of his 2020 campaign.
Phunware and Campaign Nucleus plan to use MyCanvass as the foundation of a partnership focused on developing artificial-intelligence-powered canvassing. Campaign Nucleus provided services for Trump's 2024 campaign.
Related: DJT stock jumps as former president Trump wins election, then pulls back
On Wednesday, after Trump's election victory was confirmed, Trump Media's stock ended the day's trading session up 5.9%, while Phunware's stock gained 16.6%.
However, in a note released Thursday, J.P. Morgan highlighted net selling across the media and entertainment sector, citing Trump Media and Alphabet Inc. $(GOOG)$ $(GOOGL)$ in particular. "Looking at Large-cap single-stock flows, after a month of consistently net buying, Retail became a significant net seller this past week," J.P. Morgan analyst Emma Wu wrote.
Related: Phunware narrows quarterly loss amid revenue decline, and stock sinks further
Trump Media shares are up 58.3% in 2024, while Phunware is up 56.6%, outpacing the S&P 500's SPX gain of 25.2%.
-James Rogers
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(END) Dow Jones Newswires
November 08, 2024 09:37 ET (14:37 GMT)
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