Trump Media bounces back after poll shows tight race for White House

By Noel Randewich

(Reuters) – Shares in Trump Media & Technology Group (DJT), majority-owned by former U.S. President Donald Trump, rose nearly 5 percent on Monday after a poll showed the Republican nominee in a tight race against Vice President Kamala Harris for the White House.

The rise in the company’s stock comes after weeks of declines that took it to record lows and comes ahead of key dates this month when Trump and other members of the company will be allowed to sell their shares.

Trump Media, whose main asset is the Truth Social app, saw its value rise to nearly $10 billion after its March IPO, buoyed in part by Trump supporters and traders betting he would win the November election.

Monday’s comeback in Trump Media follows a new poll suggesting Democratic rival Harris’ recent gains against Trump have stalled and reversed.

Trump is up by one percentage point over Harris, 48 ​​percent to 47 percent, according to a national poll by The New York Times and Siena College.

With eight weeks to go before the Nov. 5 presidential election, contracts for Trump and Harris wins are both trading at 52 cents with a possible payout of $1 on political betting platform PredictIt. Harris led Trump to 54 cents from 50 cents as recently as Saturday.

Monday’s gain in Trump Media shares follows several weeks of declines and leaves the company’s market value at $3.6 billion. That puts Trump’s 57% share at more than $2 billion.

For the June quarter, Trump Media reported a loss of $16.4 million and revenue of $837,000 — equivalent to the sales of two Starbucks stores.

Under the terms of Trump Media’s listing, Trump and other insiders will be allowed to sell shares starting later this month, potentially flooding the market with additional shares.

If the stock price remains at or above $12 for any 20 trading days beginning August 22, then Trump will be free to sell shares beginning September 20. Otherwise, he is eligible to sell shares starting on September 26. last at $17.94 on Monday.

(Reporting by Noel Randewich; Editing by Leslie Adler)