Shares of Trump Media & Technology Group experienced a nearly 5% increase on Monday. This uptick comes following a poll indicating a close race between former President Donald Trump and Vice President Kamala Harris for the White House.
The recent poll suggests that Trump is narrowly leading Harris by 1 percentage point, with Trump at 48% and Harris at 47%. This news has boosted investor confidence and reversed a period of decline for the company’s stock.
Market Reaction and Stock Performance
The recent surge in Trump Media’s stock follows several weeks of declines, which had driven the stock to record lows.
The company’s market value now stands at $3.6 billion, with Trump’s 57% stake valued at over $2 billion. This rebound is significant as it occurs ahead of crucial dates this month when Trump and other insiders are expected to gain the ability to sell their shares. The stock was trading at $17.94 on Monday.
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Poll Insights and Betting Market
Monday’s stock increase is aligned with a new national poll conducted by The New York Times and Siena College, which indicates that recent gains by Harris have stalled. The PredictIt politics betting platform shows a shift in market sentiment, with both Trump and Harris’ victory contracts trading at 52 cents each, reflecting the tight race. This contrasts with Harris’ previous lead where her victory contracts were trading at 54 cents compared to Trump’s 50 cents.
Impact of Insider Trading Provisions
The stock’s performance is particularly notable given the upcoming potential for increased share sales by Trump and other insiders.
According to Trump Media’s listing provisions, Trump and insiders will be permitted to sell shares starting from late September, contingent on the stock price remaining above $12 for 20 trading days.
If the stock maintains or exceeds this price, Trump will be able to sell shares beginning September 20; otherwise, the window for sales will begin on September 26.
Financial Performance and Revenue
For the June quarter, Trump Media reported a loss of $16.4 million with revenue of $837,000. This revenue level is modest, equivalent to the sales of two Starbucks stores.
Despite this financial backdrop, the recent stock price movement reflects a renewed investor optimism, driven by the tight presidential race and forthcoming insider trading opportunities.
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