After Trump Media (NASDAQ: DJT) stock managed to soar a massive 8.95% on its daily chart and 6.72% in pre-market, investors are wondering what is fueling this recovery for the company founded by the former United States President and current presidential nominee Donald Trump.
As it happens, the shares of Trump Media, which runs the Truth Social website, have hit the price of $17.15 in after-hours trading, up from the previous close of $16.09 and adding up to a whopping 31.40% advance across the past week, according to the latest chart data retrieved by Finbold on October 1.
Indeed, Trump Media & Technology Group stock’s remarkable price increase in recent days has managed to reduce its losses in the past month to 19.37%, as well as lowering its year-to-date (YTD) declines to 8.90%, as the most recent chart information demonstrates.
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Why is Trump Media stock going up?
Notably, the market optimism might have something to do with the upcoming debate between Trump’s Vice President pick, JD Vance, and his Democratic opponent, Tim Walz, which are about to have their first face-off in this election race, and a part of the market might believe in Vance’s victory.
On top of that, Trump has so far held his promise not to sell his DJT shares after their insider lockup period had expired (although some early investors did sell), easing the previous concerns of a massive sell-off that had caused the stock to tank and threatened to send it into single-digit territory. As he said at the time:
“A lot of people think that I’ll sell my shares. (…) I mean, they’re worth billions of dollars. But I don’t want to sell my shares. I’m not going to sell my shares. I don’t need money.”
However, the most significant trigger for the DJT stock’s rise is probably the recent announcement that Truth Social’s custom-built content delivery network (CDN) is now operational at multiple sites across the U.S., with CEO Devin Nunes stressing that the CDN is working well and rapidly growing:
“We’re pleased to report our CDN is operating excellently and is quickly enhancing. (…) With additional data centers expected to open soon, our TV streaming capabilities and content are expanding rapidly, consistent with Truth Social’s goal to become the unassailable fortress of free speech on the Internet.”
Taking all of the above factors into consideration, it is not surprising that Trump Media stock is currently skyrocketing, and it might continue further up if the former U.S. President’s odds at winning the presidential election grow, and especially explode if he does end up back in the White House.
However, trends in the stock market can often change suddenly and unexpectedly, so doing one’s own research, including weighing the risks and keeping up with any relevant news, experts’ predictions, earnings reports, and the like, is critical when investing a significant amount of money.
