Shares of Trump Media & Technology Group, owner of Truth Social, which trades under the symbol “DJT,” briefly turned negative after rising 17% earlier Tuesday morning. After the stock was stopped due to fluctuations, the shares began to recover and rose by 4%, without the reason for the huge wave of selling and recovery being clear yet.
Trump Media shares reached $29.21 after reaching its highest level of $51 on October 29.
The stock has had a particularly volatile few weeks, falling about 40% between Tuesday and Friday last week, but it recouped almost all of those losses early this week.
In the past 30 days, the stock has risen by about 90%, and this has added billions of dollars to the company’s market value, and to the net worth of former President Donald Trump, who owns a stake of about 57% in the company.
Trump said earlier that he did not plan to give up his properties.
The stock’s recovery comes as investors await the results of the presidential elections between Republican candidate Donald Trump and Democratic candidate Kamala Harris, and volatility in the stock is expected to continue.
One investor warned that if Trump loses the election, Trump Media shares could drop to zero.
Source: Fox News
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**Interview with Financial Analyst Jane Doe on the Volatility of Trump Media’s Stock**
**Interviewer:** Thank you for joining us today, Jane. Trump’s Media & Technology Group has seen significant fluctuations in its stock recently. What do you interpret as the main factors driving this volatility, especially with the upcoming presidential elections?
**Jane Doe:** Thank you for having me. The stock’s volatility can largely be attributed to the unique intersection of political events and market sentiment. With the presidential elections looming, investors are understandably on edge. The stock market has a tendency to react sharply to news related to political outcomes, and Trump’s candidacy amplifies these reactions given his ownership stake in the company.
**Interviewer:** Interesting point. With shares fluctuating dramatically, some investors are expressing concerns about the potential for a complete collapse if Trump loses the election. How do you assess this risk?
**Jane Doe:** The risk is certainly present, and it highlights a broader issue in investing—betting on a single individual can be precarious. If Trump were to lose, not only would investor confidence likely crumble, but it could question the long-term viability of Trump Media given its significant reliance on his political brand. A precipitous drop to zero isn’t an unrealistic fear for some.
**Interviewer:** Considering the recent surge of nearly 90% in value over the past month, what do you think might happen in the days leading up to and following the election results?
**Jane Doe:** We may see continued volatility as investors react to polling data and election outcomes. If Trump’s lead appears strong, we might see more buy-in. However, if the tide seems to change, panic selling could exacerbate any losses. This environment creates a high-risk scenario, especially for retail investors who might not be prepared for such shocks.
**Interviewer:** In light of these discussions, how should investors approach stocks like Trump Media that are so closely tied to political events?
**Jane Doe:** It’s crucial for investors to assess their risk tolerance. Stocks like Trump Media can yield high rewards in a short period, but they also carry significant risks. Diversification might be a smart approach, as well as keeping a close watch on political developments. The speculation around Trump’s presidency directly influences the stock’s performance, making it more volatile than typical equities.
**Interviewer:** Thank you for your insights, Jane. For our readers, what are your thoughts on investing in politically entwined stocks? Is the potential reward worth the risk?
**Jane Doe:** That’s a great question for debate. Are investors willing to gamble on political outcomes for possibly higher returns, or do they prefer stability and certainty in their investments? The opinions will vary widely, and I encourage readers to weigh their choices carefully.
**Interviewer:** Great discussion, Jane. Let’s keep the conversation going—what do our readers think? Would you invest in a company so closely linked to political outcomes?
