On November 6, Beijing time, Bloomberg reported that after Trump was elected as the 47th President of the United States, investors touted the shares of Trump Media Technology Group on social media platforms, pushing the company’s stock price to soar in pre-market trading on Wednesday.Trump Media Technology Group owns the social media company TruthSocial.
After Trump delivered his victory speech, the share price of Trump Media Technology Group soared 62% in pre-market trading on Wednesday, before the gains fell back. As of press time, Trump Media Technology Group’s stock price has risen 37%. Additionally, banks, prison operators and cryptocurrency-related stocks also rose in premarket trading Wednesday following Trump's victory.
Trump Media shares soar 62%
In March of this year, Trump Media Technology Group went public through a merger with a blank check company. Its share price performance has been volatile as investors ignored the company's fundamentals. After Trump suffered an assassination attempt in Pennsylvania in July this year, the share price of Trump Media Technology Group soared. However, the company's stock price fell sharply after Harris entered the election.
Although Trump Media Technology Group lost more than $19 million in the third quarter and had revenue of just $1 million, the company still had a market value of more than $7 billion as of Tuesday's close. Data from third-party tracking agencies show thatThe company’s social platform, Zhenshi Social, has been unable to attract enough users.
Trump trades — investing in Trump’s policies — began to explode on Wednesday as votes continued to be cast in key battleground states. Bitcoin prices surged to record highs, and shares in companies including Tesla, owned by Trump ally Musk, rose in pre-market trading.As of press time, Tesla's stock price has risen by more than 12% before the market opens.