The electoral success of November 5 comes with other good news for Donald Trump. Indeed, his group Trump Media and Technology Group (TMTG) is soaring on the stock market in the wake of his victory.
A spectacular increase
The action of the company, which oversees the Truth Social platform, opened at $46.69 per unit, while it had closed lower the day before at $33.94. In fact, the share price seems totally linked to the political destiny of the billionaire.
Investors expect the service to generate more traffic and ad spending now that he is president again. It is in fact on this social network, very popular with the American extreme right, that the latter has become accustomed to expressing himself indiscriminately to promote his action and attack his political opponents.
We can therefore imagine that important things will happen on Truth Social over the next four years and this seems to give confidence to Wall Street. THE New York Times recalls, however, that the company is not profitable and loses several million dollars every month. The application also struggles to convince beyond a public with reactionary political opinions.
These negative points are not likely to undermine the confidence of Chad Nedohin, pastor and part-time engineer, and one of the strongest supporters of Trump Media on Truth Social. Quoted by the American daily, he said he expected the share price to rise: “We are not in a bubble at all. It’s obvious they have big plans. » At this stage, we still don’t know which ones.
The jackpot for Donald Trump?
As a reminder, and since September 19, Donald Trump has been free to sell all or part of his 115 million shares (or approximately 57% of the company’s shares) in this group. If he decided to sell, he would recover several billion dollars, but it would also risk causing the stock price to fall.
Enough to cause discontent among the 600,000 other investors who, many of them, are supporters of the businessman. Re-elected, the latter could however take this risk, especially since he will theoretically never stand before American voters again.
Finally, let us point out that the election of Donald Trump also gives wings to the crypto world which expects the new president to pursue a policy favorable to their interests. To find out more, do not hesitate to consult our previous article here.
