Shares of Donald Trump’s company, Trump Media & Technology Group (DJT), continued on an upward trajectory in pre-market trading on Tuesday following Trump’s rally at Manhattan’s Madison Square Garden (MSG) over the weekend. After the rally, investors appeared enthused about the former president’s improved chances of a win in the upcoming presidential election.
Trump’s Recent Rally at MSG Invites Criticism
However, Trump’s rally at MSG invited criticism from both Republicans and Democrats after comedian Tony Hinchcliffe made divisive jokes about Latino and Black communities. Meanwhile, anti-immigration comments made throughout the event further fueled the backlash. DJT stock has recently surged amid this controversy, but analysts warn this momentum might be short-lived.
In fact, Matthew Tuttle, CEO of investment fund Tuttle Capital Management, told Yahoo Finance, “It’s a binary bet on the election. I would imagine that the day after him winning, you’d see this [DJT stock] come down. If he loses, I think it goes to zero.”
What Is Driving the Rally in DJT Stock?
The rally in DJT stock has been partially driven by a shift in betting odds favoring Trump’s chances, with prediction platforms like Polymarket, PredictIt, and Kalshi all showing him as leading against Vice President Kamala Harris. However, national polls tell a different story, with both candidates in a tight race, particularly in battleground states such as Pennsylvania and Michigan. These swing states are likely to decide the race, intensifying speculation around DJT stock.
The surge in the stock aside, the company continues to face financial challenges. In the most recent second quarter, DJT suffered a net loss of $16.4 million, while its revenues plunged by 30% year-over-year to just under $837,000.
Is DJT Stock a Buy?
None of the Wall Street analysts are covering DJT stock. Year-to-date, DJT has soared by more than 160%.
