Traders have looked to Trump’s stock as an indicator of his perceived chances for reelection. Should Trump win, Truth Social could play a vital role in his communications, much like how he used Twitter during his presidency. Conversely, if Vice President Kamala Harris secures victory, the future of Truth Social appears bleak.
The company’s stock performance does not reflect the actual health of its business, which pales in comparison to larger competitors like X, TikTok, and Instagram. Trump Media has been struggling financially, reporting less than $1 million in revenue for the last quarter.
While polls indicate a very close presidential race, recent trends in online betting markets have suggested Trump holds an advantage over Harris. Analysts believe this sentiment has contributed to the rise in Trump’s stock value.
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Conversely, as Harris gained ground in online betting, Trump’s media stock began to plummet, resulting in a $2.4 billion drop in Trump’s net worth from Wednesday to Friday, erasing a portion of the $3.6 billion he had gained the previous month.
The gains on Monday added approximately $500 million back to his net worth.
Trump’s betting odds saw a slight improvement on Monday, yet it remains uncertain if the stock surge can be directly linked to any specific factors, as there were no announcements from the company and Trump did not make any notable statements to influence the stock price.
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The Trump stock has been categorized as a “meme stock,” subject to wild fluctuations for a variety of reasons. In contrast, the broader stock market saw some movement on Monday, though it was far less erratic than Trump’s media shares. The Dow Jones Industrial Average dropped 220 points, or 0.5%. The S&P 500 fell by 0.1%, while the Nasdaq saw a slight increase.
(Edited by : Jerome Anthony)
First Published: Nov 5, 2024 1:54 AM IST
