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Trump Media & Technology Group (DJT) stock saw a significant jump following yet another assassination attempt on former President Donald Trump.
Key highlights:
- Shares of DJT rose over 2% after reports of the second assassination attempt.
- Trump Media stock often reacts strongly to news involving Trump, who holds the majority stake in the company.
- Trump recently stated that he has no plans to sell his shares when his lockup period ends this month, which further drove stock prices up.
Shares of Trump Media, which operates Truth Social, spiked more than 2% in pre-market trading on Monday, with the stock set to open above $18 per share. This follows the news of a targeted attack on Trump at his West Palm Beach golf club. Fortunately, Trump was unharmed, and a suspect has been arrested, with the FBI leading the investigation.
This marks the second assassination attempt against Trump in just over two months. The previous attempt occurred during a Pennsylvania rally where Trump sustained a minor injury. Following that incident, Trump Media stock surged more than 30%, hitting $46.20 per share.
As the company’s majority shareholder, Trump’s involvement significantly impacts DJT stock. The company’s regulatory filings acknowledge that its performance is tied to Trump’s popularity and public image. These filings also warn that negative publicity or the loss of Trump’s involvement could severely impact the company’s revenue.
In a boost to the stock’s recent performance, Trump announced last Friday that he would not sell his shares when the lockup period for stock sales expires later this month. “I built [Trump Media] because I don’t want to have my voice shut down,” Trump stated at a press conference. He emphasized that despite speculation, he has no intention of selling his shares, saying, “I don’t need money.” Following his remarks, DJT shares climbed nearly 12%.
Trump holds approximately 114.75 million shares, which accounts for 60% of the company’s stock. If he chose to sell at the end of his lockup period on September 20, he could potentially net over $2 billion, depending on the market price at the time.
Currently, Trump Media has a market cap of $3.6 billion, though its stock value has experienced fluctuations. Trump’s continued active involvement has kept the company resilient despite market volatility.
Analysts, however, have cautioned about the stock’s future. John Rekenthaler of Morningstar referred to DJT as an “affinity stock,” meaning its performance is heavily linked to Trump’s personal appeal rather than the company’s business fundamentals. Rekenthaler warned that DJT could plummet to “zero or something close to it” if Trump loses the upcoming election.
For now, Trump Media stock remains closely tied to Trump’s political trajectory, offering both high volatility and significant upside for investors following his career.
