Donald Trump’s media company, Trump Media & Technology Group, has seen a significant rebound in its stock price, rising by about 120% in the last three weeks after plummeting to a record low of $12.15 per share on September 23.
This increase is being driven by growing speculation about Trump’s potential re-election, which investors believe could breathe new life into the company.
Experts like Matthew Tuttle, CEO of Tuttle Capital Management, have noted that the company’s stock hinges heavily on Trump’s political future, with the possibility of it skyrocketing if he wins the 2024 election or crashing if he loses. Trump’s personal stake in the company has also surged from $1.7 billion to over $3 billion during this rebound.
The stock’s volatility and recent rise have also been influenced by Trump’s decision to hold onto his shares, despite the opportunity to sell after lockup restrictions expired. This has reassured investors, fueling further optimism in the stock’s price.
However, some experts, like Jay Ritter, a finance professor at the University of Florida, believe Trump Media is significantly overvalued. Despite the recent rally, Ritter cautions that the company lacks a clear business plan for generating profits, making its current stock price of about $25 far above its actual worth, predicting a potential 90% drop in value if it doesn’t find a sustainable path to profitability.
