General
Truth Social Stock Surges on Trump Election Victory
Shares in Trump Media were among the most actively traded in the United States after the election was called.
Donald Trump has won the 2024 presidential election. Follow live updates and results.
Shares of Donald J. Trump’s social media company rose sharply on Wednesday after the former president clinched another term in office.
Trump Media & Technology Group is the parent company of Truth Social, Mr. Trump’s primary online megaphone for reaching his supporters and attacking his political foes.
It rose as much as 30 percent in early trading, after the stock was the most heavily traded in the hours before the official market open. Swings in Trump Media’s price often set off brief trading halts by stock exchanges, pauses that are meant to give investors a chance to catch up to the movements.
Mr. Trump owns a 57 percent stake in Trump Media, worth more than $5 billion. Its share price has more than doubled from its low point in September, but at around $42 a share remains below its record $66.22 high shortly after making its Wall Street debut in March.
The stock has traded largely as a proxy for Mr. Trump’s political fortunes, untethered to the company’s performance as a business. On Election Day, the company released its latest quarterly earnings, showing that it continues to struggle as a business.
Last quarter, Trump Media took in about $1 million in revenue, somewhat less than the year ago period, and reported a loss of more than $19 million, the company said on Tuesday.
Almost all off Trump Media’s revenue comes from advertising on Truth Social — ads that tend to be related to products associated with Mr. Trump’s name and image. This summer, Trump Media introduced a streaming media service on Truth Social.
In a news release announcing the latest earnings, the company pointed out the “unique profile” of its 650,000 shareholders, almost all individual investors holding relatively small stakes.
Eshe Nelson contributed reporting.
