Shares of Trump Media & Technology Group (DJT) extended a five-week high on Monday, rising as much as 20% after Donald Trump’s highly criticized rally at Manhattan’s Madison Square Garden (MSG) over the weekend as investors bet on the former president’s chances to improve. won the November election.
At current levels, the stock is trading at its highest level since mid-July, with shares up about 235% from their September lows.
Other Trump-related stocks moved along with DJT. Mobile advertising software company Phunware ( PHUN ), which has ties to the former president, rose more than 3% on Monday, while conservative video platform Rumble ( RUM ) rose more than 6%.
Trump’s rally sparked backlash from both sides of the political aisle after comedian Tony Hinchcliffe made jokes about Latinos and the Black community, while his anti-immigration comments also dominated headlines.
The rise in DJT stock is unlikely to continue beyond the short term. One investor is now warning that if Trump loses the election next week, DJT stock could plummet to $0.
“It’s a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, told Yahoo Finance’s Catalyst show on Monday.
Tuttle, who now has put options on the stock, said the trajectory of the shares hinges on the “buy rumors, sell facts” trading strategy.
“I would imagine that the day after he wins, you’re going to see this go down,” he surmises. “If he loses, I think it’s zero.”
Shares in the company, the home of the Republican nominee’s social media platform Truth Social, have seen a new rise as domestic and overseas betting markets shift to a Trump victory, with prediction sites like Polymarket, PredictIt, and Kalshi all pointing to Trump as the most likely presidential candidate. Democrat and current Vice President Kamala Harris.
National opinion polls, however, show two candidates in an incredibly tight race, especially in the main battleground states like Pennsylvania and Michigan, which is likely to decide the fate of the election.
The stock’s recovery comes after the stock traded at its lowest level since the company’s debut following the expiration of a publicized lock-up period last month. Stocks are also under pressure, as previous polls in early September saw Harris slightly ahead of the former president.
Trump’s new campaign momentum, which recently included a stop at a local Pennsylvania McDonald’s, follows an appearance by Elon Musk at a rally in Butler, Pa., this month. This is the same location where the former president survived an assassination attempt in July.
