Shares of Trump Media & Technology Group (DJT) experienced high volatility on Election Day, reflecting investors' shifting views on former President Donald Trump's chances in the tight presidential race against Vice President Kamala Harris.
The stock, which has become a proxy for Trump's perceived odds of reclaiming the White House, surged as much as 15.25% on November 5. This extended a period of wild swings in DJT's share price as polls and prediction markets reacted to the rapidly evolving election landscape.
According to market analysts, DJT's stock price has closely mirrored shifts in Trump's perceived electoral prospects. When polls or betting markets indicated improved odds for the former president, the stock rallied. Conversely, signs of an advantage for Harris translated into declines for DJT's shares.
The stock's surge on Election Day signaled that investors were betting on a Trump victory, though the results may take days or even weeks to determine due to the tight race and potential legal challenges.
However, DJT's fundamental business remains a concern for some investors. In the third quarter, the company reported just $1 million in revenue and a net loss of $19.2 million, raising doubts about its ability to justify its $7.8 billion market capitalization without a Trump win to boost its fortunes.
