Trump Media attends rally ahead of debate clash By Reuters

By Noel Randewich

(Reuters) – Shares in Trump Media & Technology Group, majority-owned by former U.S. President Donald Trump, rose for a second day on Tuesday ahead of a debate between the Republican presidential nominee and Vice President Kamala Harris.

Shares rose more than 4 percent and lifted the value of Trump’s stake to $2.2 billion days before he and other insiders were allowed to sell their shares for the first time since the company’s public listing in March.

Trump and Democratic nominee Harris meet for the first time Tuesday night in their only scheduled debate, a clash that could prove crucial in their direct race for the White House.

Including Monday’s gains, the stock is up about 11% this week.

“It’s definitely an indicator of excitement ahead of the debate and hopefully Trump will do well tonight,” said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. “You have Trump supporters saying, ‘I’m going to buy DJT because I support Trump,’ as if it’s a statement.”

The rise in shares of Trump Media, which owns the app Truth Social, follows weeks of declines that took it to record lows last week as Harris narrowed or erased Trump’s lead in polls ahead of the Nov. 5 election.

The debate follows a poll released Sunday showing Trump up one percentage point over Harris at 48%-47%.

With eight weeks left until the election, contracts for a Harris win are trading at 53 cents, with a possible payout of $1, on political betting platform PredictIt. Contracts for a Trump win are at 52 cents.

Trump Media saw its value briefly rise to nearly $10 billion after its IPO in March, buoyed in part by Trump supporters and traders betting he would win the election.

Strategists say Trump Media’s stock market value, now at $3.8 billion, is unrelated to its business fundamentals. 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 (NASDAQ: ) 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 $18.85 on Tuesday.