Shares of Trump Media, the operator of Truth Social, surged nearly 19% on Tuesday, marking its fourth straight day of gains. At one point, the stock reached $22, which was almost 90% higher than its recent low. Despite this positive streak, the stock remains below its peak from earlier in the year. The rally in the stock price has been fueled by events such as Donald Trump holding a presidential campaign rally, where he was previously targeted in an assassination attempt, and Elon Musk endorsing Trump’s candidacy.
However, concerns about the company’s well-being have arisen, including the resignation of its chief operating officer, Andrew Northwall, and its chief product officer, Sandro de Moraes. Trump Media also had to hand over shares to an early investor due to a breach of a stock agreement. The company has reported significant losses in its quarterly reports, with minimal revenue generated by its Truth Social platform. Despite this, Trump Media’s market capitalization surpasses $4 billion.
Some analysts believe that investing in Trump Media is a way for retail investors to support Trump or bet on his chances of winning the upcoming election against Kamala Harris. Trump, who owns nearly 57% of the company, has vowed not to sell his shares. Overall, the stock’s recent surge has been a mixture of positive events such as endorsements from influential figures and concerns about the company’s financial health.
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