Shares in Donald Trump’s social media company, Trump Media, saw a significant surge after the former president survived an assassination attempt during one of his election rallies.
The company, which runs the Truth Social platform, experienced a 31% increase in its shares, with pre-market trading showing a peak of 70% before settling back down.
Analysts speculate that the rise in share prices is connected to the belief that the shooting incident may enhance Mr. Trump’s chances of winning the upcoming US presidential election in November. Billionaire Elon Musk was among those who endorsed Mr. Trump following the assassination attempt.
However, some experts caution that the spike in share prices may be more tied to the political landscape than the company’s actual performance. Truth Social has faced challenges in expanding its user base, despite its similarity to Twitter. The platform currently boasts around 2 million active users, although there are discrepancies in reported figures.
Mr. Trump, the majority shareholder of Trump Media, founded the company in 2021 after facing restrictions on major social media platforms following the Capitol Hill riots. His holdings in the company are estimated to be worth around $5 billion at the current share price of $40 a share, despite questions about the company’s sales and operations justifying such valuation.
The price of the company’s shares has exhibited volatility, often influenced by events in Mr. Trump’s personal life and political prospects. While the share price soared after the formal debut on the Nasdaq stock exchange, it dipped during his criminal trial in April, which resulted in a conviction on fraud charges.
Mr. Trump expressed gratitude for surviving the assassination attempt, attributing it to luck or divine intervention. The incident, which claimed the life of one audience member and left two others injured, has left many questioning the motive of the shooter, identified as Thomas Matthew Crooks.
As the political climate intensifies, the future trajectory of Trump Media and its associated platforms remains unclear, with investors and analysts closely monitoring developments in the lead-up to the presidential election.
