Truth Social shares surge after assassination attempt on Donald Trump

Shares of Donald Trump’s social media company soared after he survived an assassination attempt on Saturday.

Shares of Trump Media, which runs the Truth Social platform, closed up about 31%. They had risen as much as 70% in premarket trading over the weekend before falling again.

Analysts said the increase reflected bets that the shooting had boosted Trump’s chances of winning the US presidential election in November.

A bullet hit the former president in the ear during one of his election rallies, moments before the gunman was shot dead by a Secret Service sniper.

“I should be dead, I shouldn’t be here,” Trump said. it is said in one of his first interviews since the attacks.

Billionaire Elon Musk is among those who have formally endorsed Mr. Trump since the shooting.

“As the election heats up, investors are betting that more people will use social media platforms to express their views and be the first to see posts from President Trump and his team,” said Susan Schmidt, head of public equities at the State of Wisconsin Investment Board.

However, Wall Street analyst Cary Leahey said it was a trade that was “more about the election than the business,” and noted that Truth Social has struggled to grow.

“If [Trump’s] The chances of being selected increase, is the company more valuable? Some traders argue so.

“I believe if Biden resigns, Truth Social stock will go down,” he added.

Mr. Trump founded Trump Media and Technology Group in 2021 after he lost the 2020 presidential election and was temporarily banned from major social platforms, including Twitter and Facebook, which accused him of inciting violence after the Capitol Hill riot.

Truth Social largely follows the same format as X, formerly Twitter, and has around 2 million active users, although claims vary by different sources.

Mr. Trump is the majority shareholder.

At current stock prices — about $40 a share — his stake is worth about $5 billion — far more than analysts say the company’s sales and operations justify.

The company’s stock price is notoriously volatile, often linked to events in Mr. Trump’s life — and his election chances.

Shares of his predecessor began to rally in January, after Mr. Trump defeated his Republican challenger in the primary.

Its price soared higher after Trump Media officially debuted on the Nasdaq stock exchange in March.

But his stock plunged at the start of his criminal trial in April, in which he was later convicted of fraud related to hush money paid to adult film actress Stormy Daniels.

Current stock prices are still below levels seen in March.

“There is no fundamental business performance of the company currently to support the current ‘price’, but the buyers are likely political supporters buying shares to support the President’s fortunes ahead of the election,” said Thomas J Hayes, chairman of Great Hill Capital.

On Saturday, images of Mr Trump raising his fist in defiance to show he had survived the assassination attempt drew cheers from the crowd of his supporters.

Mr Trump later told US media that he felt he had been saved “by luck or by God”.

“The most amazing thing is that I didn’t just turn around [my head] but turned at the right time and in the right amount,” he said, adding that the bullet that grazed his ear could have easily killed him.

One bystander was killed in the attack, while two others were seriously injured. The shooter was identified as Thomas Matthew Crooks.

The shooter’s motive remains unclear.