Shares of Trump Media & Technology Group (DJT) rose as much as 25% before erasing gains in after-hours trading on Tuesday, as investors brace for more wild swings, with Donald Trump in the latest election results Kamala left Harris behind.
All states have now closed their respective polling stations. So far, Trump has won 248 electoral college votes, while Harris has claimed 214, according to the Associated Press.
The stock had a wild session during market hours on Tuesday as trading was halted several times due to volatility, with the shares quickly erasing a 15% gain and reversing Monday’s double-digit percentage gain to start the week. Despite a rebound from bigger losses, shares still closed down just over 1%.
The latest price action comes as investors await the results of the presidential election between the Republican candidate and his challenger.
Volatility in the stock is expected to continue as strategists categorize the stock as a binary bet on the election.
Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance’s Catalysts that the trajectory of stocks depends on the “buy the rumor, sell the fact” trading strategy.
Read more: Trump vs. Harris: 4 Ways the Next President Could Impact Your Bank Accounts
“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.
In September, shares of the company — home to the Republican candidate’s social media platform, Truth Social — traded at their lowest levels since the company’s debut, following the expiration of its much-publicized lock-up period.
However, stocks had bounced back from their lows as both domestic and foreign betting markets shifted in favor of a Trump victory.
Trump founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter, now X, following the Capitol riots of January 6, 2021. Trump has since been reinstated on those platforms. He officially returned to his post at X in mid-August, after a hiatus of about a year.
While Truth Social looks to take on social media incumbents, the company’s fundamentals have long been in question.
On Tuesday, DJT dropped its third-quarter results after the market closed, showing a net loss of $19.25 million for the quarter ended September 30. This was smaller than the $26.03 million the company reported in the year-ago period.
