There’s little doubt that former U.S. President and current presidential candidate Donald Trump’s popularity received a significant boost following Saturday’s failed assassination attempt. Truth Social (DJT) shares have long been on investors’ radar, but Trump’s choice of running mate has now also bolstered interest in Rumble (RUM) shares. The Trump trade is gaining momentum as the November elections approach.
Action in Truth Social
Trump is the largest shareholder in Truth Social, and his soaring popularity has proven to be a boost for the stock. Shares of the company are up by nearly 132% year-to-date and are likely to stay volatile as election day nears.
While DJT is to turn profitable, investor interest in the stock is evident from its trading volume. Yesterday, around 80.8 million DJT shares changed hands, compared to the three-month average trading volume of 6.8 million shares. Still, the potential upside in DJT may be limited as the stock already commands a sizable market capitalization of $7.7 billion and is up by over 200% over the past year.
Watch Out for Rumble
Trump’s choice of his Vice Presidential running mate, Ohio Senator J.D. Vance, however, has added another name to the Trump trade. Vance’s VC firm, Narya Capital, is an investor in Rumble, a conservative-leaning video-sharing platform. Vance also has a personal investment in Rumble.
Compared to DJT, Rumble shares are still down by nearly 26% over the past year. Consequently, the stock may offer a higher potential upside. While it is already up by nearly 60% year-to-date, the $5-$5.5 level is likely to act as a new major support zone for the stock. Similar to DJT, trading volume in Rumble shot up to 17.6 million shares yesterday, compared to the average three-month trading volume of just 1.1 million shares.
Is RUM a Good Stock to Buy?
Not surprisingly, the TipRanks Technical Analysis tool is flashing a “Buy” signal for Rumble stock on a monthly time frame.
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