Shares of Trump Media, the operator of Truth Social, surged nearly 19% on Tuesday, marking its fourth consecutive day of gains. The company’s stock reached $22 at one point during heavy trading, up significantly from its recent low of $11.75. Despite this increase, the stock remains well below its peak in March. The rally has been fueled by a recent presidential campaign rally held by majority owner Donald Trump, where he was previously targeted in an assassination attempt.
The stock surge comes amid news of the resignation of the company’s chief operating officer and chief product officer. Trump Media also faced a legal issue with early investor ARC Global Investments II, resulting in the transfer of nearly 800,000 shares of common stock to the entity. Despite these challenges, Trump Media’s market capitalization is over $4 billion, with Trump owning nearly 57% of the company.
The company has posted significant net losses in recent quarterly reports, with limited revenue and a smaller audience compared to larger social media platforms. Some analysts see investing in Trump Media as a way to show support for Trump or bet on his chances of winning against Democratic nominee Kamala Harris in the upcoming election.
Overall, despite the company facing internal and legal challenges, its stock has seen significant gains driven by recent events involving its majority owner, Donald Trump. The market continues to closely watch Trump Media’s performance amidst speculation surrounding its future.
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