Trump Media stock soars up to 19% as DJT extends longest rally since June
- Shares of Trump Media surged, putting the Truth Social operator on track for its fourth straight day of gains.
- The rally accelerated after Trump Media majority owner Donald Trump held a presidential campaign event with Tesla CEO Elon Musk in Pennsylvania.
- Trump Media, which trades under the DJT ticket, recently revealed Chief Operating Officer Andrew Northwall had resigned.
Shares of Trump Media surged nearly 19% on Tuesday, putting the Truth Social operator on track for its fourth straight day of gains — its longest positive price streak since June.
DJT shares at one point jumped to $22 in extremely heavy trading, nearly 90% higher than the company's intraday low of $11.75 per share on Sept. 24.
Trump Media ended the trading day up 18.5% at $21.80 per share.
But the stock price remains well below its peak in late March, when shares hit $79.38 during the company's trading debut on the Nasdaq.
More than 45 million DJT shares were exchanged Tuesday, more than tripling its 30-day average volume.
The rally has accelerated since Saturday, when the company's majority owner, Donald Trump, held a presidential campaign rally near Butler, Pennsylvania, at the same site where he was nearly assassinated at a rally on July 13.
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Trump's return to the site drew thousands of supporters, as well as Tesla CEO Elon Musk, who endorsed the GOP nominee's candidacy minutes after the assassination attempt.
Musk, the mega-billionaire who owns the social media site X, told the audience that Trump "must win to preserve democracy in America."
But the stock price surge also comes despite news about Trump Media that might ordinarily raise concerns about a company's well-being.
On Thursday, the company revealed that its chief operating officer, Andrew Northwall, had resigned in late September.
Neither Trump Media nor Northwall said why he quit, and the company has not announced a successor.
Trump Media's chief product officer, Sandro de Moraes, also left the company, according to his Truth Social account.
ProPublica last week reported that in addition to de Moraes, multiple lower-level employees recently departed Trump Media.
Thursday's filing with the Securities and Exchange Commission also revealed that Trump Media is handing over nearly 800,000 shares of common stock to an entity called ARC Global Investments II, an early investor in the blank-check firm that took Trump Media public through a merger.
The move followed a judge's ruling that Trump Media breached a stock agreement with ARC Global.
In late September, a company controlled by two co-founders of Trump Media, which held more than 5% of DJT stock, sold nearly all of their 11-million-share stake.
That sale occurred shortly after early investors in the company, including Trump, were allowed to sell their shares.
Trump owns nearly 57% of Trump Media — a stake worth almost $2.5 billion as of Tuesday. The former president has vowed not to sell his shares.
Trump Media has posted net losses of more than $340 million on revenue of less than $2 million in two most recent quarterly reports. Its Truth Social platform attracts just a fraction of the audience of established social media giants, including X and Facebook.
Despite its lack of profit, the company boasts a market capitalization of more than $4 billion.
Some analysts view Trump Media as a way for retail investors to support Trump or bet on his odds of beating Democratic presidential nominee Kamala Harris in November's election.
