Trump Media and Technology Group (NASDAQ: DJT), the parent entity of Truth Social platform, is exploding higher today in affinity with the so-called Trump trade - a conglomeration of bets on select stocks and cryptocurrencies that stand to benefit from a Trump presidency.
As of the time of writing, Trump is on the verge of clinching at least 270 electoral college votes, setting the stage for his second term in the White House. Crucially, Kamala Harris has no viable path left to clinching the all-important majority in the electoral college.
This outcome is now manifesting in outsized gains in not just Trump Media shares, which are currently up around 32 percent in early pre-market trading, but also Tesla shares and Bitcoin.
The president-elect's gigantic 59 percent stake in Trump Media and Technology Group (TMTG) corresponds to 114.75 million shares. Based on the current stock price of $45 per share, Trump Media now boasts of a market capitalization of $9 billion. This means that Trump's stake is currently worth a whopping $5.3 billion.
Also, Tesla is currently up 13 percent in pre-market trading. Bear in mind that Elon Musk has pledged to head a government efficiency commission in the incoming administration. Moreover, Bitcoin is up ~6 percent right now, and continues to flirt with all-time highs. Trump has already promised to establish a strategic Bitcoin reserve. Moreover, the SEC under his administration is expected to adopt a much more benevolent stance towards the crypto sector in general. For a broader readout of the ramifications for the tech sector from this political upset, head to our dedicated primer.
Meanwhile, Trump Media and Technology Group released its Q3'24 earnings in a surprise announcement last night, disclosing $1 million in revenue and $4.7 million in interest income. The company recorded a net loss of $19.2 million for the quarter after accounting for $12.1 million in legal costs, including those in relation to TMTG's acquisition of TV streaming technology in August 2024.
For comparison, Trump Media and Technology Group earned just $836,900 in revenue and recorded a net loss of $16.4 million for Q2'24.
As we've noted before, TMTG has now launched its Truth+ TV streaming service on a dedicated content delivery network (CDN). The service supports live TV as well as video on demand and is now available via the native Truth+ apps for Android, iOS and smart TVs.
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