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Trump Media shares jump, suggesting extension to Monday rally

Published 06/25/2024, 08:51 AM

Investing.com -- Shares in Trump Media & Technology Group (NASDAQ:DJT) jumped by more than 9% in premarket U.S. trading on Tuesday, pointing to an extension in a sharp rally in the previous session.

The stock price of the firm majority-owned by former President Donald Trump shot up by over 21% on Monday to $33.52, rebounding after a series of recent losses.

Trump Media shares have fallen by about 50% since a jury in New York found Trump guilty last month of falsifying business records to cover up a payment to a porn actress prior to the 2016 election, making him the first ex-president to be convicted of a crime.

The stock was also dented last week when the Securities and Exchange Commission declared effective the registration of additional shares, posing a possible dilutive threat to the stock price. The company behind social media platform Truth Social said it stood to gain more than $69.4 million from the registration, which allowed early investors to resell some shares and snap up holdings at a preset price.

Steep swings have been a characteristic of Trump Media shares since their public debut through a merger with a special purpose acquisition vehicle earlier this year. Following the flotation, the stock surged to a high of $79.38, but retreated shortly thereafter. Sentiment around the stock was also hit when Trump Media posted a net loss of $327.6 million in May.

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