DJT Stock Soars to Highest Level Since July as Trump’s Election Prospects Improve

The stock of Trump Media & Technology Group (DJT) has experienced a significant surge, extending its five-week rally as investors increasingly bet on former President Donald Trump‘s chances of winning the 2024 US presidential election. Following Trump’s rally at Madison Square Garden over the weekend, the stock climbed as much as 20%, reaching its highest point since mid-July and marking a remarkable increase of approximately 235% from its lows in September.

This upward trend is largely driven by investor optimism about Trump’s electoral prospects. Betting markets, both domestic and international, are currently favoring a Trump victory, with prediction platforms such as PredictIt and Kal indicating higher odds for Trump compared to Democratic nominee Kamala Harris.

Other stocks associated with Trump have also seen gains. Phunware (PHUN), a mobile advertising software firm linked to Trump, rose by more than 3%, while Rumble (RUM), a conservative video platform, surged over 6% on Monday.

However, analysts caution that the DJT stock’s upward momentum may not be sustainable in the long run. Matthew Tuttle, CEO of Tuttle Capital Management, characterized the stock as “a binary bet on the election,” suggesting that if Trump loses, the shares could plummet to zero. Tuttle also predicted that even if Trump wins, the stock might follow a “buy the rumor, sell the fact” strategy, leading to a post-election decline.

The recent surge in DJT shares follows a period of decline after the expiration of a well-publicized lockup period last month and earlier polling in September that showed Harris slightly ahead of Trump. Trump’s campaign activities, including a recent visit to a McDonald’s in Pennsylvania and a rally in Butler, Pennsylvania, where Elon Musk made a guest appearance, have contributed to the building momentum.

Elon Musk, who has publicly expressed support for Trump and was mentioned as a potential Cabinet member, has also played a role in the stock’s performance. Despite this, Tuttle remains skeptical about the core business model of Trump Media & Technology Group, questioning the necessity of the Truth Social platform now that Trump is no longer banned on X (formerly Twitter).