Shares of Trump Media & Technology Group Corp. rallied 13% in morning Tuesday trading, enough to suggest investors are optimistic that former President Donald Trump will win the election.
The stock DJT of the parent of Trump’s Truth Social social-media platform has acted as a proxy for Trump’s perceived chances, as it has gained and fallen with the betting odds on the election.
It has been on a roller coaster over the past couple of months. On Sept. 23, it had tumbled to the lowest closing price seen since Trump Media officially took the former president’s initials as its ticker, then more than quadrupled to a five-month high on Oct. 29.
The stock then tumbled 41% amid a three-day losing streak before bouncing 12.4% on Monday.
On Election Day itself, the stock was rallying 11% in premarket trading.
What may make that gain significant is that it takes the stock above where it closed, at $34.99, just before President Joe Biden dropped out of the presidential race.
If the stock is a true proxy, this appears to indicate investors — at least those in “DJT” — are now expecting a victory.
Keep in mind that some of the stock’s recent gains could be attributed to what the company may be doing to prepare for life after the election, whatever the outcome.
In October, when the stock really took off, Trump Media made five announcements as to where the Truth+ streaming app had become available, including on Apple TV, Amazon Fire TV and Android TV.
That followed the company’s early August disclosure of its financials for the quarter to June 30.
The company reported net losses that narrowed to $16.4 million, or 10 cents a share, from $22.8 million, or 26 cents a share, in the same period a year before, while sales had dropped 29.8% to $836.9 million.
No analysts currently cover the company, according to FactSet.
The company also disclosed at that time that management had identified “a material weakness” in its internal control over financial reporting.