Trump Media stock rises, continues rally

Shares of Trump Media rose nearly 19% on Tuesday, putting the Truth Social company on track for its fourth straight day of gains — its longest run since June.

DJT shares at one point jumped as high as $22 in heavy trading, nearly 90% above the company’s record low of $11.75 per share on Sept. 24.

Trump Media ended the trading day up 18.5% at $21.80 per share.

But the stock price remains below the peak reached in late March, when shares hit $79.38 when the company began trading on the Nasdaq.

More than 45 million shares of DJT traded on Tuesday, more than triple its 30-day average volume.

The rally has gathered pace since Saturday, when the company’s owner, Donald Trump, held a presidential campaign rally near Butler, Pennsylvania, in the same area where he was nearly killed at a rally on July 13.

Trump’s return to the site drew thousands of supporters, as well Tesla CEO Elon Musk, who approved the appointment of the GOP nominee minutes after the assassination attempt.

Musk, the billionaire owner of social media platform X, told the audience that Trump “must win to preserve democracy in America.”

But the rise in the stock price also comes despite news about Trump Media that may raise concerns about the company’s well-being.

On Thursday, the company revealed that its CEO, Andrew Northwall, resigned in late September.

Neither Trump Media nor Northwall said why he quit, and the company has not announced a replacement.

Trump Media’s chief product officer, Sandro de Moraes, has also left the company, according to his Truth Social account.

ProPublica last week reported that in addition to de Moraes, several low-level employees recently left Trump Media.

Thursday’s filing with the Securities and Exchange Commission also revealed that Trump Media is offering nearly 800,000 shares of common stock to an entity called ARC Global Investments II, an early investor in the blank check company that took Trump Media public in a merger.

The move follows a judge’s ruling that Trump Media breached a stock deal with ARC Global.

At the end of September, the company controlled by the two founders of Trump Media, which owned more than 5% of DJT stock, sold almost all of their 11-million-share shares.

That sale came shortly after early investors in the company, including Trump, were allowed to sell their shares.

Trump owns about 57% of Trump Media — a stake worth about $2.5 billion as of Tuesday. The former president vowed that he would not sell his shares.

Trump Media posted a loss of more than $340 million on revenue of less than $2 million in its two most recent quarterly reports. Its Social Reality platform attracts just a fraction of the audience of social media giants, including X and Facebook.

Despite its lack of profitability, the company boasts a market capitalization of over $4 billion.

Some analysts view Trump Media as a way for retail investors to support Trump or bet on his chances of defeating Democratic presidential nominee Kamala Harris in the November election.