Trump Media & Technology Group, the parent company of Truth Social, climbed 16% on Tuesday, its first day on the market. By afternoon trading on Wednesday, the stock had jumped another 14%.
Experts who spoke to ABC News said the stock boom stands divorced from the financial condition of the company, instead reflecting a buying spree among Trump supporters as well as opportunistic traders capitalizing on the momentum."This is people voicing their political opinions through the markets," Tom Essaye, president of financial data firm Sevens Report Research, told ABC News. "There’s nothing going on here that has anything to do with the financial fundamentals.
In 2021, the price of GameStop climbed nearly 700%, driven in part by traders discussing the company on a Reddit chatroom called Wall Street Bets. The rally did not coincide with a major strategy shift or executive shakeup for the ailing chain of video game stores. Truth Social generated roughly $3 million over the first 9 months of 2023, government filings show. Meanwhile, the company reported $49 million in net losses over that period. By comparison, Instagram-parent Meta delivered nearly $135 billion in revenue last year, company earningsThe stock rally arrives as Trump weathers financial challenges.