Trump Media & Technology shares climbed ahead of the open Monday as investors continued to revive their interest in the stock after a post-election slump.
The Truth Social parent, trading under the ticker DJT, was 11% higher in premarket trading, after surging 15% Friday.
The stock was volatile ahead of last week's U.S. election, and nothing much has changed on that front since Donald Trump was declared the winner.
DJT stock appeared to trade as a proxy for the chances of a Trump victory in last week's election. However, there was uncertainty over how the shares would perform after the election, particularly as they tumbled 23% Thursday--the stock's worst day since the company merged with Digital World Acquisition in March.
A recovery was launched Friday and it looks set to continue to start the week. It's unlikely that the company's fundamentals are driving the renewed positivity--Truth Social remains a small player in a social-media market dominated by Meta Platforms' Facebook, Elon Musk's X, and Reddit.
The stock looks overvalued. The company has a market capitalization of $6.9 billion, even though revenue fell to $1 million in the third quarter.
It's clear that, at least for now, investors haven't ditched DJT or excluded it from the Trump trade. It's therefore likely to stay volatile.
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