Trump Media Stock Jumps After Second Assassination Attempt Against Donald Trump
Trump by Michael Vadon.
Trump Media & Technology Group (DJT) stock jumped after former President Donald Trump became the target of another apparent assassination attempt.
At a glance:
- Shares of Trump Media & Technology Group (DJT) rose over 2% following an apparent second assassination attempt on Donald Trump.
- Trump Media stock is highly sensitive to news involving the former president, who holds a majority stake in the company.
- Trump stated he has no intention of selling his shares when his lockup period expires this month, further boosting stock prices.
Shares of Trump Media, the company behind Truth Social, the right-wing social media platform, climbed more than 2% in pre-market trading on Monday, with shares set to open at over $18 apiece. The rise follows the news that Trump had been targeted while golfing at his club in West Palm Beach, Florida, on Sunday. Trump was unharmed, and authorities have apprehended a suspect, with the FBI now investigating the incident.
This is the second attempt on Trump’s life in just over two months. The first occurred during a campaign rally in Pennsylvania when Trump was shot in the ear. That incident sent Trump Media stock soaring more than 30%, reaching $46.20 per share.
Trump Media stock tends to fluctuate with news involving the former president, who is the company’s majority shareholder. In its regulatory filings, the company itself has noted that its “success depends in part on the popularity of its brand and the reputation and popularity” of Donald Trump. The filings also warn that any “adverse reactions to publicity relating to [Trump], or the loss of his services, could adversely affect TMTG’s revenues and results of operations.”
Adding to the stock’s recent momentum, Trump announced on Friday that he would not sell his stake in the company when his six-month lockup period for shares expires later this month. “I built [Trump Media] because I don’t want to have my voice shut down,” Trump said during a news conference. “A lot of people think that I will sell my shares, you know, they’re worth billions of dollars, but I don’t want to sell my shares. I don’t need money.” Following these remarks, shares of DJT climbed almost 12%.
Trump, who holds 114.75 million shares — roughly 60% of the company’s outstanding stock — could stand to make over $2 billion if he chose to sell his stake when the lockup period ends on September 20. However, the total returns would depend on the stock’s trading price at the time of sale.
Trump Media currently has a market capitalization of $3.6 billion, down from its initial high after debuting on the Nasdaq under the ticker DJT on March 26. Despite these fluctuations, Trump’s continued involvement in the company has kept the stock resilient in the face of broader market volatility.
However, some analysts have issued warnings about the stock’s long-term viability. John Rekenthaler, vice president of research at Morningstar, has labeled DJT an “affinity stock” — meaning its performance is largely tied to the public’s emotions and perceptions of Donald Trump, rather than the company’s underlying business performance. Rekenthaler has cautioned that Trump Media stock could “go to zero or something close to it” if Trump loses the upcoming presidential election.
As it stands, Trump Media’s stock price remains heavily influenced by the political fortunes of its namesake, making it a volatile yet potentially lucrative investment for those who follow Trump’s political career closely.
