Shares of Trump Media, the operator of Truth Social, experienced a nearly 19% surge on Tuesday, marking its fourth consecutive day of gains. The stock price reached as high as $22 in heavy trading, almost 90% higher than its intraday low in September. Despite this increase, the stock remains well below its peak in March. The rally in shares intensified after former President Donald Trump held a campaign rally, with Tesla CEO Elon Musk voicing his support for Trump’s presidential candidacy at the event.
However, concerns about Trump Media’s well-being have arisen with the resignation of its chief operating officer in September and other employee departures. The company recently gave nearly 800,000 shares of common stock to an early investor after breaching a stock agreement. Despite net losses of over $340 million and minimal revenue, Trump Media has a market capitalization of over $4 billion.
Trump, who owns nearly 57% of Trump Media, has expressed no intention to sell his shares. Some analysts see Trump Media as a way for retail investors to support Trump or speculate on his chances against Democratic nominee Kamala Harris in the upcoming election. The platform, Truth Social, has a small user base compared to established social media platforms like X and Facebook.
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