Shares of Trump Media & Technology Group (DJT) extended their five-week surge on Monday, rising as much as 20% after Donald Trump’s rally at Manhattan’s Madison Square Garden (MSG) this weekend, as investors bet on improved chances that the former president would win the election. November elections.
At current levels, the stock is trading at its highest level since mid-July, with shares up about 235% 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 more than 3% on Monday, while conservative-leaning video platform Rumble (RUM) rose more than 6%.
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 Catalyst 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 victory, with prediction sites like Polymarket, PredictIt and Kalshi all upping expectations. Show Trump. presidential chances greater than those of Democratic candidate and current Vice President Kamala Harris.
However, national polls show both candidates in an incredibly close 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, which recently included a stop at a local McDonald’s in Pennsylvania, follows 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.
Tech billionaire Musk, who is CEO of Tesla (TSLA) and SpaceX and also owns social media platform X (formerly Twitter), has been outspoken about his support for Trump ahead of next week’s election. Trump has even said he would consider a Cabinet position for Musk, but that the businessman would likely not be able to serve “with all he has to offer.”
