The stock of Trump Media & Technology Group (TMTG), the owner of Truth Social, experienced wild volatility on Wall Street Tuesday, with trading briefly suspended multiple times as investors reacted to a frenzied market. TMTG, which has seen its stock triple in value over the past month, is riding a wave of interest driven by Donald Trump’s ongoing presidential campaign. The market excitement comes as polls show a close election race, adding another layer of volatility to the company’s stock.
Wild Swings and Surging Valuation
During early trading, TMTG shares initially jumped by 14%, only to reverse those gains and settle up just 1.5% by late morning. The dramatic fluctuations reflect a larger pattern of TMTG’s stock performance this year. Since hitting a low of $12.15 last month, shares have skyrocketed, and the company’s market value has quadrupled in recent weeks. Currently valued at approximately $9 billion, TMTG has even briefly overtaken the valuation of X, formerly Twitter, which was acquired by Trump ally Elon Musk.
Trump’s majority stake in TMTG, now valued at around $5.1 billion on paper, highlights the financial stakes for the former president. The stock’s meteoric rise recalls previous “meme stock” rallies, such as those seen with GameStop, where online day traders fueled unpredictable market movements. But as with GameStop, TMTG’s rapid climb has set the stage for equally steep declines, reminding investors of the risks inherent in such volatile stocks.
Election-Driven Resurgence
TMTG’s recent market activity has been closely tied to Trump’s campaign for the upcoming presidential election. The company’s shares surged as Trump ramped up his campaign efforts, and the stock’s performance has become a kind of barometer for his popularity. With betting markets showing Trump as a strong contender, TMTG has experienced renewed investor interest, leading to a substantial rally in October.
Yet, despite the stock’s performance, Truth Social remains a niche social media platform. The app logged 13.5 million visits last month, a small fraction of X’s 706.2 million visits, according to Similarweb. Still, Truth Social’s alignment with Trump’s public profile has driven speculative interest, further amplified by election buzz.
Market Comparisons and Meme Stock Status
As TMTG climbs in value, its status as a “meme stock” resembles the paths of companies like GameStop and AMC, whose stocks drew massive attention from retail investors despite financial challenges. This surge in TMTG’s stock has drawn day traders, who are eager to capitalize on the platform’s election-fueled attention. However, TMTG’s path has been unpredictable. In March, shares rose above $66, only to plummet below $13 by September.
Analysts caution that, as with other meme stocks, TMTG’s current valuation may not reflect its financial fundamentals. While the recent rally underscores investor interest, TMTG’s small user base relative to its valuation raises questions about its long-term growth potential.
As TMTG navigates an election-fueled surge, its stock performance highlights the influence of speculation and sentiment over financial fundamentals. With Truth Social remaining a small player in social media, TMTG’s stock reflects more than just company performance—it mirrors the broader political momentum of Donald Trump’s campaign. For investors, the coming weeks will test whether TMTG’s rally can sustain its momentum or if volatility will again take center stage on Wall Street.
