Why Trump Media Stock Soared This Week

Actions of Trump Media and Technology (DJT 15.92%) were among the winners this week as adze CEO Elon Musk’s appearance at a Trump rally last weekend appeared to help spark a rally in stocks that seem to rise and fall based on Trump’s political fortunes.

The company also launched the Truth+ streaming app for Android phones, expanding the company’s reach with content that includes news and entertainment.

According to data from S&P Global Market Intelligence, the stock was up 44% in Thursday afternoon trading.

Image source: Getty Images.

Are Trump’s prospects improving?

Shares of Trump Media rose on Monday and Tuesday in response to a surprise appearance by Musk at a Trump rally in Pennsylvania on Sunday. Musk’s support of the former president was widely known, but Trump Media investors appear to be hoping that Musk’s enthusiastic support could help Trump and his company.

Finally, news that Truth+ has launched on Android gave the stock a boost on Thursday. Trump Media said the streaming service will launch on iOS and other platforms in the near future. It’s likely to struggle in a crowded streaming sector, but it may win over some Trump fans.

Can Trump Media Stock Continue to Win?

Trump Media has been volatile since March and will continue to be so, at least until the election.

While the stock looks vastly overvalued based on its core business, which generates less than $1 million in revenue per quarter, and comparable market values ​​of other media companies, investors see the stock as an avatar for Trump himself. If his election prospects improve, expect the stock to rise in the coming weeks.