MW DJT stock jumps as former president Trump wins election
By Steve Goldstein and James Rogers
The Associated Press called the election for former President Trump at 5:34 a.m. Eastern time
Trump Media & Technology shares soared on Wednesday morning after Republican former President Donald Trump defeated his Democratic rival Vice President Kamala Harris in the U.S. election.
The stock's rally was adding about $1.5 billion to Trump's wealth.
The Associated Press called the election for Trump at 5:34 a.m. Eastern time. The result marks a remarkable comeback for Trump after his defeat by President Joe Biden in 2020. Trump becomes only the second U.S. President to serve non-consecutive terms after Grover Cleveland, who was in the White House between1885 and 1889 and from 1893 to 1897.
Trump, who is Trump Media's majority shareholder, gave a victory speech at West Palm Beach Convention Center in Florida earlier today. "This was a movement like nobody's ever seen before, and, frankly, this was I believe, the greatest political movement of all time," he said. "And now it's going to reach a new level of importance because we're going to help our country heal," Trump added.
Related: What the Trump win means for the mega-cap tech giants, according to this high-profile analyst
"We made history for a reason tonight," he said.
Trump Media & Technology stock $(DJT)$ jumped 37.3% in premarket trade. The stock has largely tracked the fortunes of Trump in the polls heading into the election.
Trump is a majority owner of the company, as he owns 114.75 million shares, or about 57% of the shares outstanding. So the stock's current implied one-day, post-election price gain boosted the value of Trump's stake by about $1.45 billion.
Meanwhile, the stock's 52-week high was $79.38, so even with the gains the stock is well below record levels.
Related: Trump's 'DJT' reports narrowing quarterly loss on Election Day. Stock jumps after hours following regular-session slump.
The company's valuation runs far in excess of the financials. Trump Media unexpectedly reported its third-quarter results after market close on election day, losing $19.2 million on $1 million in revenue and $4.7 million in interest income. However, the company's loss narrowed from the same period last year. In the third quarter, Trump Media had $672.9 million in cash and short-term investments and no debt. Its market cap on Tuesday was $6.8 billion.
Trump personally has nearly 115,000 shares in the company, according to FactSet.
Shares of Trump Media, which went public through a merger with special-purpose acquisition company Digital World Acquisition Corp. on March 26, are up 93.9% in 2024.
Tomi Kilgore contributed.
-Steve Goldstein -James Rogers
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 06, 2024 07:28 ET (12:28 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
