The shares of Trump Media and Technology Group, the parent company of Truth Social, experienced significant growth of up to 50% on Monday. This increase was in response to the attempted assassination of the former president at a rally in Pennsylvania on Saturday. The stock value by midday was up by 30%, at $40.28, following a 70% surge in premarket trades.
It’s no secret that the stock price of this social media company has been somewhat of a roller coaster, largely influenced by the political trajectory of the former president. A notable dip of almost 50% occurred after Trump was convicted on May 30 for falsifying business records. However, when Biden fumbled during the first presidential debate, shares rose again.
A Meme Stock?
Some industry experts have compared Trump Media to a meme stock, with its value influenced more by retail investors’ emotional connection to the company’s success rather than any belief in its underlying core value.
Interestingly, analysts have posited that the recent assassination attempt may bolster Trump’s chances of reclaiming the presidency. This sentiment was echoed by Tesla CEO Elon Musk who, in a tweet following the incident, fully endorsed President Trump. He subsequently drew a comparison between Trump’s resilience and that of Theodore Roosevelt.
The Betting Odds and Financial Markets
- Betting odds that Trump will secure victory in the November election surged from 60% to 67%, according to the online marketplace PredictIt.
- Financial markets are also factoring in a higher likelihood of this outcome. Apart from the stock bump experienced by Trump Media, long-term Treasury yields also rose. This is a bet that Trump, once in the White House, would implement inflationary policies, pressuring the Federal Reserve to maintain higher rates for an extended period.
“What transpired over the weekend probably confirmed what the markets have been predicting for some time,” stated Eleanor Taylor Jolidon, co-head of Swiss and global equity at UBP, on Bloomberg TV Monday morning, according to Axios.
Call for Additional Security
In the aftermath of the attack, Devin Nunes, CEO of Trump Media, released a statement. He called on the federal government to provide additional security for Trump. He also demanded a “meticulous federal investigation to determine all the circumstances of this cowardly attack and to identify if any additional persons were involved.”
