Shares of Trump Media & Technology Group (TMTG) experienced a significant surge in the week leading up to Donald Trump’s return to the White House. This rally underscores the company’s close ties to the former president and the potential impact of his political activities on its performance.
On Monday afternoon, TMTG stock soared over 16%, reaching $41.12 per share. This marked one of the most substantial single-day gains for the company since Trump’s election victory. The stock’s upward trajectory continued in the days following the election, with a cumulative increase of 21%.
)
Interestingly, while broader market indices and cryptocurrencies rallied after Trump’s win, TMTG’s initial response was relatively muted. This contrasted with the period leading up to the election, during which the stock had seen an impressive 180% surge in just six weeks. This pre-election rally represented the company’s strongest performance since its March 26 Nasdaq debut, following a merger with Digital World Acquisition Corp (DWAC), a special purpose acquisition company (SPAC).
Last month, regulatory filings revealed a significant shift in TMTG’s ownership structure. Donald Trump transferred all 114.75 million of his shares, representing approximately 58% of the company’s outstanding stock, to the Donald J. Trump Revocable Trust. This transaction resulted in Trump no longer directly owning any TMTG shares, with the revocable trust, overseen by his son Donald Trump Jr., becoming the majority shareholder.
Despite the recent stock surge, TMTG continues to face financial challenges. The company’s third-quarter earnings report, released in November, showed a net loss of $19.2 million. Revenue also declined by 5.6% year-over-year, totaling just $1.01 million. These figures highlight the company’s ongoing struggle to achieve profitability. The recent stock market activity suggests that investor sentiment towards TMTG remains highly sensitive to political developments surrounding Donald Trump. The company’s future performance will likely depend on its ability to navigate a complex political landscape and translate its connection to the former president into sustainable financial success.
