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Shares of Trump Media & Technology Group have mounted a sudden turnaround after weeks of bleeding.
Trump Media stock climbed nearly 15%, trading at $24.60 per share Wednesday. It wasn’t immediately clear why shares of Trump Media, the company behind former President Donald Trump’s social media network Truth Social, reversed course so sharply after two consecutive days of all-time post-merger lows.
On Tuesday, the company saw the value of its shares fall to a post-merger low of $21.33. Wednesday’s stock moves, however, erased millions of dollars in market value losses the company has suffered in recent days and weeks, bringing its market capitalization to $4.85 billion.
Since debuting on the Nasdaq under the ticker DJT on March 26, shares of Trump Media have fallen roughly 58%. Trump Media didn’t carry out a traditional initial public offering, instead completing a merger with Digital World Acquisition Corp., a special purpose acquisition company, or SPAC.
In the immediate aftermath of the stock’s debut, Trump Media had a market value of roughly $8 billion — billions more than what it is today.
Trump Media has been labeled a “meme stock,” like GameStop, AMC, and Reddit, as its shares are traded largely on sentiment around the former president — who is a majority shareholder — rather than the company’s actual operating results or prospects.
This has driven particular volatility in the media company’s stock. Shares have spiked and sank on Trump’s conviction in his New York hush money trial and his debate performance against President Joe Biden in June, as well as last month’s assassination attempt at a campaign rally in Pennsylvania.
Wednesday’s rise coincides with a spike in bets that Trump will win the 2024 presidential election against Democrat Vice President Kamala Harris, according to prediction market platform Polymarket. The site allows people to bet on outcomes of events using cryptocurrency. Users gave the Republican nominee a 52% chance of winning as of Wednesday, despite several polls showing Harris with a slight lead.