DJT Stock Rises as Trump Gets $200 Million Richer on Election Day

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The publicly traded social media company, largely owned by former President Donald Trump, staged a small rally on Tuesday in a bumpy final trading session before polls closed.

Trump appears at his rally in Grand Rapids, Michigan, early Tuesday.

AFP via Getty Images

Important facts

Shares of Trump Media & Technology Group, which trade under the ticker symbol $DJT, a reference to Trump's initials, rose as much as 18.6% to $40.74 by early afternoon, increasing Trump's net worth at the time by more than $600 million.

But in late afternoon trading, the stock suffered a sharp decline, turned negative and briefly stalled before recovering to post a 5% gain to about $36 a share, representing paper profits of about $210 million. Dollars for Trump corresponds.

According to Forbes estimates, Trump's social media nest egg now accounts for $4.1 billion of his $6.2 billion net worth, making him the 531st richest person in the world.

Shares of the parent company of social media site Truth Social are up about 95% in the last month.

Important background

Trump owns 57.3% of his eponymous company, which became an independent company in March after completing a years-long reverse merger with Digital World Acquisition Corp., a blank-check company. Experts largely consider Trump Media to be a meme stock, meaning its stock price can fluctuate wildly, with the movements often not reflecting the company's underlying financial performance like other stocks. The company's revenue is just a fraction of that of its social media rivals, with Trump Media's revenue of $1.6 million in the first six months of 2024 being far less than Snap's of 2.4 billion US dollars and that of Reddit during this period at 520 million US dollars. Although Trump Media's $8 billion market cap is less than half of Reddit and Snap's respective $20 billion valuation, Truth Social's parent company is valued at an exponentially higher premium than its competitors traded, with its price-to-sales ratio of 3,996 dwarfing Reddit's 20 P/S ratio and Snap's 4 P/S ratio, a metric that compares a company's market value to its sales in the compared to the last four quarters.

tangent

Trump Media's stock price has moved sharply toward the betting market's chances of a Trump victory, a rally seen as a vote of confidence in Trump's election victory. The stock traded at $16.50 a share a month ago when Trump's odds on betting platform Polymarket were at 49%, and more than doubled when his betting odds rose above 60%.

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