Shares of Trump Media & Technology Group (DJT) rose as much as 25% in after-hours trading on Tuesday, as investors brace for more wild swings as early voting results approach. Shares have since fallen back and are up a more modest 10%.
According to the Associated Press, Trump has captured Kentucky, Indiana and West Virginia, while Harris has claimed Vermont.
The stock had a wild session during market hours after trading halts several times due to volatility, with shares quickly erasing a 15% gain and reversing Monday’s double-digit percentage gain to start the week.
Shares were still able to recover somewhat from larger losses, although the stock was still down just over 1%.
Last week, shares suffered the biggest percentage decline, closing about 20% lower to close the five-day period on Friday, wiping about $4 billion from the company’s market cap. The stock is still more than doubled from its September low.
The latest price action comes as investors await the results of the presidential election between Republican candidate Donald Trump and Democratic candidate Kamala Harris.
Volatility in the stock is expected to continue. One investor has warned that if Trump loses the election, DJT shares could fall to $0.
“It’s a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance’s Catalysts.
Read more: Trump vs. Harris: 4 Ways the Next President Could Impact Your Bank Accounts
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.”
Steve Sosnick, chief strategist at Interactive Brokers, said DJT has taken on a “life of its own.”
“It’s been volatile on the way up, and when a stock is that volatile in one direction, it tends to be that volatile in the other direction,” he said on a call with Yahoo Finance last week.
Before the recent volatility, shares in the company — home to the Republican candidate’s social media platform, Truth Social — had been rising steadily in recent weeks as both domestic and foreign betting markets shifted in favor of a Trump victory.
Prediction sites such as Polymarket, PredictIt and Kalshi all showed that Trump’s presidential chances are higher than those of Democratic candidate and current Vice President Kamala Harris. That lead narrowed significantly this weekend, however, when new polls showed Harris overtaking Trump in Iowa, which has historically voted Republican.
