Trump Media & Technology Group (DJT) shares extended their five-week rise on Monday and closed more than 21% higher after Donald Trump’s share price plunge. highly criticized rally at Madison Square Garden (MSG) in Manhattan this weekend, as investors bet on better odds that the former president would win the November election.
At current levels, the stock is trading at its highest level since early June, with shares up about 240% from their September lows.
Other Trump-related stocks moved along with DJT. Mobile advertising software company Phunware (PHUN), which has ties to the former president, rose in early trading on Monday before erasing those gains and closing flat. The conservatively oriented video platform Rumble (RUM) climbed almost 15%.
Trump’s rally sparked backlash from both sides of the political aisle after comedian Tony Hinchcliffe made inflammatory jokes about Latinos and the black community, while anti-immigration comments also dominated headlines.
DJT stock’s rise is unlikely to continue in the near term. One current investor warned that if Trump loses the election next week, DJT shares could fall to $0.
“It’s a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, told Yahoo Finance’s Catalysts show on Monday.
Tuttle, who currently owns put options on the stock, said the stock’s trajectory depends on the “buy the rumor, sell the fact” trading strategy.
“I imagine you would see this happen the day after he won,” he surmised. “If he loses, I think it goes to zero.”
Shares in the company, home to the Republican candidate’s social media platform Truth Social, have risen recently as both domestic and foreign betting markets shift in favor of a Trump win, with prediction sites like Polymarkt, Predict itAnd Kalshi All of this shows that Trump’s presidential chances are greater than those of Democratic candidate and current Vice President Kamala Harris.
National pollsHowever, both candidates are in an incredibly tight race, especially in key states like Pennsylvania and Michigan, which will likely determine the fate of the election.
The stock’s recovery comes after shares traded at their lowest levels since the company’s debut following the expiration of its much-publicized lock-up period last month. Stocks were also under pressure as previous polls in early September showed Harris slightly ahead of the former president.
Trump’s recent campaign momentum, including a recent stop at a local McDonald’s in Pennsylvaniafollows an appearance by Elon Musk at his rally in Butler, Pennsylvania, earlier this month. It was the same location where the former president survived an assassination attempt in July.