Shares of Trump Media & Technology Group Corporation jumped 40 percent on Election Day as former President Donald Trump took the lead in the presidential race. The rally followed NBC’s projection of Trump securing key swing states. Despite reporting a $19.2 million loss in the third quarter, the stock has surged over 105 percent within the last month.
Price Action
In the pre-market trading on Wednesday, the indicative price of Trump Media depicts a staggering 40 percent increase to $47.8 per share from its previous close of $34.34 per share. Over the past month, the stock has provided a remarkable return of over 84 percent.
What happened
On U.S. Election Day, shares of Trump Media & Technology Group surged as former President Donald Trump gained an edge in the tight presidential race.
A CNBC report suggested that this stock jump reflects the market’s perception of Trump’s election chances as he aims for a second term. The surge followed NBC’s projection of Trump winning key swing states like North Carolina and Georgia, boosting investor confidence.
Investors often view Trump Media & Technology Group Corp.’s stock as a gauge of Donald Trump’s political outlook, particularly as he competes in a tight race against Democratic Vice President Kamala Harris. The stock has shown notable volatility during the election period, fluctuating in response to changes in Trump’s electoral standing, as reported by Bloomberg.
Q3 Results
In the third quarter, Trump Media & Technology Group posted a net loss of $19.2 million, driven mainly by legal expenses and costs associated with its recent TV streaming acquisition. These costs included $12.1 million in legal fees, primarily from acquiring TV streaming technology in August and additional fees from a SPAC merger completed in March.
For the quarter ending in September, the company reported $1 million in revenue and held $672.9 million in cash and cash equivalents, including short-term investments, with no debt.
About the Company
Trump Media & Technology Group Corp. (TMTG), established in 2021, is a U.S.-based media and technology company best known for its social media platform, Truth Social. The company is headquartered in Sarasota, Florida.
Truth Social launched in February 2022 after Donald Trump was banned from major social media platforms like Facebook and Twitter in the wake of the January 6 Capitol events. The platform was created as an alternative space for conservative voices, promoting itself as a champion of free speech and countering perceived censorship by mainstream platforms.
Written by – Siddesh S Raskar
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