What's Going On With Trump Media & Technology Stock On Tuesday?

Trump Media & Technology Group Corp DJT stock had multiple volatility halts Tuesday morning as prices fluctuated significantly.

The stock was halted at 9:36 a.m. ET, showing a 14% gain, and again at 9:42 a.m., with shares up by nearly 9%, CNBC reports.

At 10:21 a.m., the stock fell over 2%, prompting further halts.

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Trading volume was intense, with 16 million shares exchanged in the first 10 minutes, quickly surpassing the 30-day average of 35.1 million by 10:15 a.m., as per CNBC.

At the time of writing, DJT stock has traded 135.9 million shares compared to a 100-day average of 19.42 million.

The volatility followed Trump Media’s 21% surge on Monday, adding to a pre-election rally that began in late September after a prolonged slump.

On Monday, Trump Media stock surged following Republican presidential candidate Donald Trump’s rally at Madison Square Garden, giving the company a market cap of roughly $9.48 billion, Variety reports.

Trump’s commitment to retaining his shares fuels the ongoing rally, making the stock a unique political proxy on Wall Street and driving it with meme stock-style hype.

Analysts project Trump’s fiscal proposals, including expanded tax breaks, to add $7.5 trillion to the national debt over the next decade. Interest in “Trump trades” like dollar assets and bitcoin is growing as markets anticipate a potential Trump victory.

The rally comes despite the company’s reported total revenue of $1.6 million for the first half of 2024 and ongoing losses.

Trump Media stock now exceeds four times their previous month’s low, marking a 224% increase this month, the most significant gain since October 2021.

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Trump Media surpassed the valuation of Elon Musk’s X, formerly Twitter. Since Musk acquired Twitter in 2022 for $44 billion, the value of X has dropped significantly. Fidelity’s recent valuation estimated X at around $9.4 billion, as per Variety.

This spike in share value comes as Trump’s ownership, approximately 57% of the company, gained significant worth, with his stake valued at over $6 billion by Tuesday’s open.

Despite recent losses and low revenue, Trump Media’s market cap now exceeds $10 billion.

Trump Media & Technology is likely to have an elevated valuation due to its proxy as a political trade. The stock could fall if Trump loses the 2024 election, the former president sells his stake, or after the election is over and investors take profits.

Trump Media stock surged 41% in the last five days and over 211% in the last 30 days.

Price Action: DJT stock is up 10.20% to $52.20 at the last check on Tuesday.

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