A week before the election, DJT stock jumps amid Trump's rise in betting markets

Donald Trump's media company is enjoying a stock market resurgence, with shares of Trump Media & Technology Group soaring Tuesday as betting markets now bet that the former president is favored to win the Nov. 5 election.

The focus on Trump Media – which trades under the symbol DJT, the same as Trump's initials – has led to a surge in trading volume, with the New York Stock Exchange halting trading in the stock on several occasions Tuesday due to unusual volatility.

Shares jumped $5.86, or 12.4%, to $53.22 Tuesday afternoon. The increase represents a big boon for Trump, who owns more than 57% of Trump Media's shares, with the value of his stake having soared from $2.6 billion to more than $6 billion during the current rally, according to the investment research firm S3 Partners.

The stock has surged more than 340% since hitting a low of $11.75 per share in September. Tuesday's spike came as the Nasdaq Composite Exchange, where Trump Media shares trade, rose 0.9% and remained on track to close the day at a record high.

With polls showing the presidential race to be extremely close, betting markets such as Polymarket are now predicting that Trump will be the favorite to win the election.

“DJT’s price closely reflects Trump’s chances in prediction markets,” S3 analysts said in a note to investors on Tuesday.

While Polymarket said last week that a French individual entrepreneur was behind four accounts that spent millions to buy the Trump contract, the international platform determined that it was not manipulation of walk.

Worth more than Elon Musk's X

Trump Media has been highly volatile since its shares began trading in March, initially reaching a valuation exceeding $9 billion despite a history of losses, before falling to its September low. Much of the stock's movement has to do with Trump's political fortunes, with the DJT rising when his chances appear to be improving.

After Tuesday's stock gains, Trump Media now has a market capitalization of $10.3 billion. This tops established social media platforms, including the company.

The sharp swings in DJT stock have prompted comparisons to a meme stock or a company whose shares trade on social media buzz instead of traditional analytical metrics such as revenue growth and profitability. Trading volume in DJT stock has been unusually high over the past two weeks, with trading volume topping 120 million shares on Tuesday, compared to a 30-day average trading volume of 35 million shares, according to the financial data company FactSet.

“DJT has been very volatile due to speculators being momentum players,” Jay Ritter, a finance professor at the University of Florida, wrote in an email to CBS MoneyWatch. “These speculators buy when the price rises, driving the price up, but then sell when the tide turns, sometimes leading to sharp declines.”

DJT Price Prediction

But Trump Media has little revenue or growth to attract institutional investors, while it has become expensive to sell short because of the cost of borrowing the stock, Ritter said.

“The company is losing money and depleting its liquidity. In the short term, anything can happen to the price, but the long-term trend will be downward,” he added.

The company's precarious financial situation has prompted short sellers, or investors who bet on a company's stock price to decline, to invest in DJT stock. And those shorts, who Trump Media executives have accused of manipulating the company's stock, could take a bath if Trump wins next week, according to S3.

On the other hand, “DJT could lose all its value if Trump were to lose,” write the analysts.

The Associated Press contributed to this report.

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Aimee Picchi is an associate editor at CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and wrote for national media outlets including USA Today and Consumer Reports.

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