US Markets
Monday, July 15th, 2024 3:45 pm EDT
Key Points
- Stock Surge After Assassination Attempt: Trump Media shares soared over 35% and saw heavy trading volume following the assassination attempt on former President Donald Trump, who is also the company’s majority shareholder.
- Federal Investigation and Security Measures: Trump Media CEO Devin Nunes called for a thorough federal investigation into the attack and requested additional security resources for Trump, emphasizing the gravity of the situation.
- Impact on Election Prospects and Volatile Stock: Analysts believe the assassination attempt could improve Trump’s chances in the upcoming November election, reflecting in market reactions. Trump Media’s stock has been volatile, affected by Trump’s legal issues and the company’s financial struggles.
Shares of Trump Media surged over 35% on Monday morning, following an attempted assassination of former President Donald Trump, the majority shareholder of the company, over the weekend. Trading was particularly heavy, with over 17 million shares of DJT, the owner of the Truth Social app, changing hands before 10 a.m. ET. The attempted assassination occurred on Saturday in Pennsylvania, where Trump was grazed by a bullet and treated at a local hospital, only to be released later that evening. The incident happened just days before Trump is to be formally nominated as the Republican Party’s presidential candidate.
Trump Media’s stock saw a premarket increase of 50% at 6:29 a.m. ET, though it had retreated slightly from its earlier highs. Devin Nunes, CEO of Trump Media, expressed his sympathies for the wounded and the family of the person killed in the attack. Nunes called for a swift and thorough federal investigation into the circumstances of the attack and urged the federal government to provide any necessary security resources to ensure Trump’s safety.
Analysts believe that the assassination attempt could bolster Trump’s chances in the upcoming November election. Rob Casey of Signum Global Advisors noted that the markets reacted positively to the events, suggesting that they could strengthen Trump’s position in the election.
The assassination attempt has also brought attention to the volatile nature of Trump Media’s stock, which has experienced significant fluctuations throughout the election race. The stock had previously plummeted nearly 50% in the weeks following Trump’s felony conviction, affecting the company of which he is the majority shareholder.
Trump Media, which owns the social media platform Truth Social, has faced challenges in expanding its user base. The company’s first-quarter earnings report, filed in May, revealed a net loss of $327.6 million and total revenue of $770,500. Last month, the company warned investors that Trump’s use of other social media platforms could have a detrimental effect on the business and operations of Trump Media and Technology Group (TMTG).
In summary, the attempted assassination of Donald Trump has not only sparked a significant rally in Trump Media shares but also intensified the political and market dynamics surrounding his presidential candidacy and the future of Truth Social. The incident underscores the high stakes of the upcoming election and the challenges faced by Trump Media in maintaining its market position amidst ongoing political turmoil.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/15/trump-media-shares-rise-after-assassination-attempt.html
