Truth Social shares surge after Trump shooting
Shares in Donald Trump’s social media company have surged following his survival of an assassination attempt on Saturday.
Trump Media, operator of the Truth Social platform, saw its shares rise approximately 31% at close. Pre-market trading initially boosted prices by as much as 70% over the weekend, though they later retreated.
Analysts attribute the gains to speculation that the assassination attempt may bolster Mr. Trump’s prospects in the upcoming presidential election. A bullet grazed the former president’s ear during a rally before the assailant was shot by a Secret Service sniper.
“I’m supposed to be dead, I’m not supposed to be here,” Mr. Trump remarked in one of his first post-attack interviews.
Billionaire Elon Musk is among those who have formally endorsed Mr. Trump since the incident.
“As the election heats up, investors are wagering that more individuals will flock to the platform to voice their opinions and access posts from President Trump and his team,” noted Susan Schmidt, head of public equity at State of Wisconsin Investment Board.
However, Wall Street analyst Cary Leahey cautioned that the surge is more a reflection of electoral sentiment than business fundamentals, highlighting Truth Social’s prior growth challenges.
“If his election prospects improve, does the value of his company rise? Some traders think so. I’m certain that if Biden withdrew, Truth Social shares would drop,” he added.
Established in 2021 after Trump’s 2020 election defeat and social media bans, Trump Media and Technology Group launched Truth Social as an alternative to platforms like Twitter and Facebook, which had banned Trump for allegedly inciting violence during the Capitol Hill riots.
Truth Social operates similarly to Twitter, boasting around 2 million active users, though figures vary across sources.
At the current share price – roughly $40 a share – his holdings are worth roughly $5bn – far more than analysts say is justified by the company’s sales and operations.
The firm’s share price has been notoriously volatile, often tied to events in Mr Trump’s life – and his election odds.
Shares of its predecessor company started rallying in January, after Mr Trump defeated Republican challengers in the primaries.
The price soared further after Trump Media formally debuted on the Nasdaq stock exchange in March.
But shares slumped at the start of his criminal trial in April, in which he was later convicted of fraud charges linked to hush-money that was paid to adult-film actress Stormy Daniels.
The current share price remains below levels seen in March.
“There is no current fundamental business performance of the company that supports this current ‘price’ but buyers are likely political supporters purchasing shares to support the President’s wealth ahead of the election,” said Thomas J Hayes, chairman of Great Hill Capital.
On Saturday, images of Mr Trump holding up his fist defiantly to show he had survived the assassination attempt elicited roars from his supporting crowd.
Mr Trump later told US media he felt that he had been saved “by luck or by God”.
“The most incredible thing was that I happened to not only turn [my head] but to turn at the exact right time and in just the right amount,” he said, adding that the bullet that grazed his ear could have easily killed him.
One audience member was killed in the attack, while two other people were seriously injured. The gunman has been named as Thomas Matthew Crooks.
The motive of the shooter remains unclear.
