Trump Media & Technology Group (NASDAQ: DJT), the company behind Truth Social, has been on a wild ride in 2024.
After a turbulent year that saw its share price hit rock bottom, the stock has bounced back in a big way. Up nearly 150% in just three weeks, it’s been a dramatic turnaround for the former president’s social media company.
From crash to comeback
Just a few weeks ago, things were looking bleak for Trump Media. The stock hit an all-time low of $12.15 on September 23, an 82% crash from its previous high. Investors were scrambling, and the company’s future looked uncertain. But as the race for the White House heated up, so did the stock.
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Without any flashy announcements or new revenue streams, Trump Media surged. DJT shares jumped nearly 50% last week alone, adding another 18% on Monday. The company didn’t receive any high-profile endorsements from Wall Street or reveal a major shareholder. Instead, the rally has been driven by one key factor: the odds of Donald Trump winning the 2024 election.
Matthew Tuttle, CEO of Tuttle Capital Management, puts it bluntly: “It’s really simple. People realize that if Trump gets elected, this stock has the potential to do something. And if he doesn’t get elected, it probably goes to zero.”
For investors, Trump Media has long been seen as a proxy for betting on the former president’s political future. With recent polls and betting markets showing a slight shift in Trump’s favor, the stock has become a battleground for traders hoping to capitalize on the election outcome.
A $1,000 bet in 2024
For those who invested in Trump Media at the start of 2024, the results have been nothing short of impressive.
On January 2, the stock was trading at $17.45 per share. Fast forward to October 14, and it closed at $29.95, marking a +71.63% jump year-to-date. Meanwhile, pre-market trading on October 15 saw the stock climbing even higher to $33.49, up another +11.82% at the time of publication.
If you had invested $1,000 in Trump Media on January 2 at $17.45 per share, you’d be sitting on approximately $1,716 today. And if you account for the pre-market price on October 15, that same $1,000 would now be worth around $1,920—a gain of $920 in less than a year.
Why TMTG stock is surging
The recent rally isn’t just about Trump’s election odds. One factor driving investor confidence is the fact that Trump has held onto his stock.
Many believed the former president would sell his shares once the lock-up period expired, but Trump has repeatedly stated he has no plans to offload his stake. This move has reassured investors who were worried about a potential sell-off and has helped fuel the stock’s rise.
For now, Trump Media is riding high on the belief that a Trump victory in November could send the stock soaring even higher. But as with all things Trump-related, it’s a high-stakes game. If the election doesn’t go in his favor, the stock could crash just as quickly as it’s risen.
