这种戏剧化的转变是由特朗普在11月获胜的可能性所推动的，长期以来，这只股票一直是交易员押注大选的一种方式。①Shares of Trump Media & Technology Group (DJT) surged 18% on Monday, with a nearly 90% increase for the month; ②The sharp rise in the company's stock price reflects the increasing likelihood of Trump winning the election, while on the gambling website PredictIt, Harris' advantage over Trump has disappeared.
Caixin Media news on October 15 (Editor: Niu Zhanlin) Monday US East Coast Time, $Trump Media & Technology (DJT.US)$ Stock price surged by 18%, with nearly 90% increase this month, the frantic rise in the stock price also reflects Trump's chance of reclaiming the White House.
In fact, on September 23, DJT's stock price dropped to a historical low of $12.15, plummeting by 82% from its peak. But in the following three weeks, the stock price more than doubled. It surged by nearly 50% just last week and another 18% on Monday.
This dramatic turnaround is driven by the possibility of Trump winning in November. Historically, this stock has been a way for traders to bet on the election.
Currently, the battle for the White House is still neck and neck, with both Harris and Trump having the potential to win. However, the gambling market and recent polls have somewhat shifted towards favoring Trump.
Matthew Tuttle, CEO of Tatell Capital Management, pointed out: 'The reason is really simple, people realize that if Trump is elected, this stock could do well. But if he is not elected, the stock price will also fall back.'
The core asset of DJT is Truth Social, a social media company founded by Trump himself, where Trump is not only a major shareholder but also the spokesperson.
University of Florida finance professor Jay Ritter, who has been studying the capital markets for 40 years, commented that since September 23, the stock price of DJT has skyrocketed by 100%, which is truly shocking.
Ritter added that the significant increase in the company's stock price reflects the rising odds of Trump winning the election. On the gambling website PredictIt, Harris' advantage over Trump has disappeared.
Chief Operating Officer and Co-Founder Michael Block of AgentSmyth pointed out that on November 15, just a few days after the election, many call options will expire.
Despite the recent surge in stock prices, DJT's stock price still has a long way to go from its peak of $66 in March. The value of Trump's holdings has decreased by about $2 billion compared to the end of March.
In addition to the elections, the company's stock price has also benefited from the former president holding onto his stocks. Many investors speculate that Trump may sell his stocks after the lock-up period expires. However, Trump has not disclosed any plans to sell his stocks so far, publicly stating that he will not sell DJT's stocks.
However, Ritter warned that the market has severely overestimated the value of DJT. He still has deep doubts about the company, believing that DJT's value is only the cash on its balance sheet because it has not proven itself with a profit-generating business plan.
Editor/Somer
