Trump Media Stock Rises Over 10% in After-Hours Trading Amid Election Developments

As the presidential race heats up between Donald Trump and Kamala Harris, shares of Trump Media & Technology Group Corp (ticker: DJT) have seen a notable rise.

What Happened: The recent spike in Trump Media's stock is largely attributed to the unfolding U.S. elections and the release of the company’s third-quarter financial results.

As of the latest updates, the after-hours trading volume for DJT was recorded at 21.9 million shares, according to Nasdaq statistics. The stock reached a high of $49.78 during after-hours trading, while the lowest point recorded was $31.12.

Remarkably, the stock experienced increased fluctuations, resulting in two trading halts on Tuesday due to its volatility.

In the current electoral landscape, both Trump and Harris have secured early wins in key states associated with their respective parties. Trump has emerged victorious in Kentucky, Indiana, and West Virginia, while Harris has claimed Vermont.

In Kentucky, with 34% of votes counted, Trump is leading with 64.6%. Meanwhile, in Indiana, where 24% of the votes have been tallied, he holds 64%. On the other side, in Vermont, Harris leads with 69% based on 20% of votes counted.

If elected, Harris, who is 60 years old, would make history as the first female president and the first woman of Black and South Asian heritage to take office. Conversely, if Trump, age 78, wins, he would become the oldest president ever elected and the first to win reelection after previously losing a presidential bid in over a century.

The stock movements of Trump Media are being seen as an indicator of Trump’s potential success in the election. Should he win, his platform, Truth Social, is expected to play a crucial role in how he communicates with his supporters.

On the contrary, a victory by Vice President Harris could pose challenges for the future prospects of Truth Social.

Why It Matters: The volatility in Trump Media & Technology Group’s stock performance is closely linked not just to the election dynamics but also to its financial results.

After the market closed on Tuesday, Trump Media reported that its third-quarter net sales reached $1.01 million, marking a 6% decline from the previous year. All revenue generated during this quarter was sourced from advertising on the Truth Social platform.

The company reported a loss of 10 cents per share, which is an improvement compared to the 30 cents per share loss from the same quarter last year.

According to the company's statement, "TMTG’s success depends in part on the popularity of our brand and the reputation and popularity of President Donald J. Trump. The value of TMTG’s brand may diminish if the popularity of President Donald J. Trump were to suffer." Trump holds an approximate 57% stake in Trump Media.

Price Movement: DJT shares concluded the regular trading session on Tuesday up by 1.16%, finishing at $33.94. However, during after-hours trading, the stock rose significantly, increasing by 10.43% to hit $37.48, as per data from Benzinga Pro.

Photo via Shutterstock.

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