Shares of Trump Media & Technology Group (DJT), the parent company of Truth Social, experienced a notable surge of 16% on the day before the US presidential election. This increase in stock value occurred without any apparent catalyst, adding to the already high volatility of the company's shares since going public in March.
Trump's stock performance has been closely monitored by traders as a potential indicator of the former president's perceived reelection chances. Unlike traditional stocks that are influenced by the company's business performance, Trump's stock seems to be more reflective of market sentiment towards his political prospects.
Market analysts have observed a correlation between Trump's stock movement and trends in online betting markets. While polls indicate a tight presidential race, online betting sites have favored Trump over Vice President Kamala Harris in recent weeks. This preference for Trump in prediction markets has been linked to the increase in Trump's media stock value.
Conversely, when Harris showed signs of gaining momentum in online betting markets, Trump's media stock experienced a significant decline. This downward trend led to a substantial decrease in Trump's net worth, erasing a significant portion of the gains he had accrued in the previous month.
Monday's gains in Trump's media stock helped to partially offset the losses incurred in the preceding days, contributing to a partial recovery in Trump's net worth. The dynamic relationship between Trump's stock performance and political speculation continues to attract attention from investors and analysts alike.
