Shares of former President Donald Trump’s social media company surged on the final trading day before the U.S. presidential election.
Trump Media & Technology Group (DJT), the parent of Truth Social, gained 12% on Monday, despite no clear catalyst for the jump.
Since going public in March, the stock has seen major fluctuations, initially quadrupling in value over five weeks before tumbling 41% across the last three trading sessions.
Traders view Trump’s stock as a gauge of his reelection odds. Should Trump win, Truth Social could play a prominent role as a communication tool, similar to how he previously utilized Twitter.
If Vice President Kamala Harris prevails, Truth Social’s future could be bleak.
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The company’s shares don’t reflect its business fundamentals, which lag significantly behind larger competitors like X, TikTok, and Instagram.
Trump Media has been facing cash shortages and reported less than $1 million in revenue last quarter.
Though polls indicate a tight race, online betting markets recently showed a slight advantage for Trump, which some market analysts believe has fueled the stock’s recent gains.
Conversely, as Harris’s standing improved in betting markets, Trump’s media stock sharply declined, wiping out $2.4 billion of Trump’s net worth from Wednesday to Friday—undoing much of the $3.6 billion in gains he saw the previous month.
Monday’s gains restored over $400 million to Trump’s net worth.
While betting odds favored Trump slightly on Monday, there was no clear reason behind the stock’s rise, as no company announcements or Trump statements emerged that could have influenced the price.
Trump’s stock is often seen as a “meme stock,” one that can experience sharp, unpredictable swings based on speculative trading.
Monday’s broader market also saw some movement, though it was more stable than Trump’s media stock.
The Dow closed down 258 points, or 0.6%, while the S&P 500 and Nasdaq each dropped 0.3%, after spending most of the day in positive territory.
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