Is Trump Media & Technology Group’s stock a bet on Trump’s second term?
Shares of Trump Media & Technology Group (DJT), majority-owned by former US President Donald Trump, have hit record lows as Trump returns to rival social media platform X and faces a diminishing lead in polls for the upcoming presidential election.
The stock plunged to $21.42 on Tuesday, down 3.7 percent, marking the eighth consecutive session of losses. Some retail traders view the stock as a bet on Trump’s reelection chances.
Despite reporting a $16.4m loss and revenue of $837,000, Trump Media has a market value of $4.3bn, significantly lower than its peak at $8bn earlier this year.
Traders are closely monitoring Trump’s stake in the company, which could be cashed out next month. The stock’s performance is aligned with Trump’s election odds, recently dropping as his lead narrows in polls against Democratic candidate Kamala Harris.
With the election approaching, traders are eyeing contracts on PredictIt, with Harris currently leading at 56 cents compared to Trump’s 46 cents. As uncertainty looms, the future of Trump Media’s stock remains tied to the political landscape.
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