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Trump Media & Technology Group Stock Soars Over $3 Billion Recovery
After weeks of decline, the stock of Trump Media & Technology Group has made a significant rebound, gaining back more than $3 billion in market value. The company, known for its Truth Social platform spearheaded by former President Donald Trump, saw its shares close up nearly 7% on Tuesday, finishing the day at $49.93 per share. This increase brought the company’s market capitalization back up to $6.83 billion, a sharp recovery from the lows experienced in early April when the market cap dropped below $4 billion.
However, the positive trend was short-lived as Trump Media stock experienced an 8% decline on Wednesday, with shares trading at $45.90 each and the market cap decreasing to $6.28 billion. The company made its debut on the Nasdaq on March 26 under the ticker symbol DJT, initially trading as high as $79.38 per share. Despite the promising start, challenges arose soon after with the stock plummeting following revelations of substantial losses in operations in 2023, the resale of a large portion of outstanding securities, and the unveiling of a live TV streaming platform.
The Stock’s Volatility and Market Reaction
John Rekenthaler, Vice President of Research at Morningstar, characterized Trump Media’s stock as highly volatile, stating that its fluctuations were unparalleled in his recollection. Nevertheless, Rekenthaler believes that Trump’s consistent presence in the media will serve as a driving force behind the stock’s performance, likening it to “oxygen” that sustains the share price. The recent resurgence in Trump Media’s stock value has coincided with the ongoing criminal trial of the former president in New York, where he faces scrutiny over a payment made to adult film actress Stormy Daniels prior to the 2016 election.
The trial, which commenced on April 15, has been a focal point for Trump’s commentary on his Truth Social platform. The former president has utilized the platform to express his opinions on the trial proceedings, including criticisms of the presiding judge and media coverage. In a recent post on the site, Trump emphasized the platform’s role as “THE REAL VOICE OF AMERICA!!!” showcasing his continued commitment to leveraging Truth Social as a means of communication and engagement.
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