President Trump’s social media company is experiencing a dramatic surge on Wall Street, driven by optimism around his chances of winning the White House. The company’s stock, which owns Truth Social, has skyrocketed by nearly 150% in the past three weeks, more than doubling its share price. The stock surged 50% last week and gained another 18% on Monday.
This stunning rebound comes despite the absence of major announcements like new revenue streams or products. Instead, the rally is fueled by market sentiment that ties Trump’s election prospects to the stock’s future. Trump Media has become a proxy for traders betting on the outcome of the November election.
Trump’s ownership stake of 114.75 million shares makes him the largest shareholder, and the value of his stake has surged by $1.7 billion since September, now standing at $3.4 billion. Betting markets, such as PredictIt, and recent polls show a tightening race, with momentum shifting in Trump’s favor.
Jay Ritter, a finance professor at the University of Florida, called the stock’s rapid recovery “stunning,” noting that meme stocks like Trump Media thrive on attention, particularly during an election cycle. Meanwhile, Michael Block, COO at AgentSmyth, pointed to increased bullish options activity expiring just after Election Day, signaling a selective bet on a Trump victory.
Despite the recent gains, Trump Media’s stock is still far below its March peak of $66, and Trump’s stake remains down about $2 billion from its peak value earlier this year. However, the stock has been buoyed by Trump’s decision not to sell his shares after lock-up restrictions expired, defying speculation that he might cash out.
“If Trump were polling well but planned to sell his stock, we wouldn’t see this kind of rally,” Tuttle said. “The fact he hasn’t sold and has indicated he won’t has set the stage for the recent gains.”
