Trump Media and Technology Group stock (DJT) reverses earlier losses in afternoon trading Monday as stocks brace for another volatile week on Wall Street just one day before the presidential election. and rose by about 2%.
The stock suffered its biggest decline last week, dropping about 20% on Friday to close out five days of trading.
And since Tuesday, the company’s market cap has been slashed by more than $4 billion, but the stock is still more than doubling from its September lows.
Stock prices are likely to continue to fluctuate as the election approaches. One investor warned that DJT’s stock price could fall to $0 if Trump loses Tuesday’s election.
“This is a 10/20 bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, recently told Yahoo Finance Catalyst.
Mr. Tuttle, who currently owns a put option on the stock, said the stock’s price movement depends on a trading strategy of “buying rumors and selling facts.”
“The day after he wins, this is going to collapse,” he surmised. “If he loses, I think it will be zero.”
Steve Sosnick, chief strategist at Interactive Brokers, said DJT has “breathed a life of its own” into meme stocks.
“It’s been volatile on the way up. When stocks move a lot in one direction, they tend to move in the other direction as well,” he said on a call with Yahoo Finance last week.
Shares of the company that runs Truth Social, the Republican candidate’s social media platform, had risen in recent weeks ahead of a recent selloff as betting markets at home and abroad were shifting in favor of Trump’s victory.
Forecasting sites such as Polymarket, predictand Karushi Both indicate that Trump has a better chance of becoming president than Democratic candidate and current vice president, Kamala Harris. But that lead narrowed significantly over the weekend, with new polls showing Harris winning. He beat Trump in Iowa. Historically, they have voted Republican.
And as the gambling market tightens, national opinion poll This indicates a campaign in which both candidates are effectively at a stalemate. Opinion polls in key battleground states that are likely to determine the outcome of the election, such as Pennsylvania, Michigan and Wisconsin, also show close margins.
In September, the stock traded at its lowest level since the company’s debut following the end of a highly publicized lock-up period. The last poll in September showed Harris with a wide lead over the former president, putting stock prices under pressure.
