It appears that former President Donald Trump surviving an assassination attempt at a Pennsylvania rally on Saturday, has led to a significant boost in DJT stock price. The company, which operates Trump’s social media platform Truth Social, saw its shares rise dramatically by approximately 32% in Monday’s trading session.
And that is not all. The failed assassination attempt, a rare occurrence for a major U.S. political figure, seems to have also potentially altered the playing field of the upcoming presidential election. Political analysts are reassessing Trump’s chances of success in his reelection bid, with some prediction models now favoring the former president.
Louis Vincent Gave, CEO of investment research firm Gavekal, commented on the situation, stating,
“The recent events, including President Biden’s debate performance and the assassination attempt on Trump, suggest a strong likelihood of Republican success in the November elections.”
The stock surge has had a substantial impact on DJT’s market valuation, adding approximately $1.9 billion and bringing its total capitalization to $7.8 billion. This increase has also significantly boosted the value of Trump’s personal stake in the company, which is now estimated at $4.7 billion.
However, some financial experts caution that this DJT stock behavior may not align with traditional market fundamentals. The company’s shares have shown volatile trading patterns since its public debut in March, leading some Wall Street observers to view it as a “meme stock” driven more by social media sentiment than by business performance metrics.
It’s worth noting that DJT’s current market capitalization rivals that of well-established companies with significantly higher revenues. For instance, U.S. Steel, which reported $4.2 billion in first-quarter revenue, has a similar market value to DJT, despite the latter’s comparatively modest sales of $770,500 in the same period.
The incident has also impacted other Trump-related stocks and online betting markets. Shares of Rumble saw an increase of over 10%. Additionally, prediction bets on various online platforms have adjusted in Trump’s favor following the event.
While the assassination attempt has undoubtedly influenced short-term market dynamics and political discourse, some experts remain cautious about its long-term impact. Terry Haines, founder of policy advisory firm Pangaea, told Yahoo Finance,
“This was a seismic event in political terms, but it may not have a lasting impact on Trump’s presidential chances or voter behavior.”
