Truth Social Stocks Skyrocket Following Trump Assassination Attempt
Shares in Donald Trump’s social media company, Truth Social, saw a dramatic surge after the former president survived an assassination attempt on Saturday. Trump Media, which operates the platform, closed with shares up by about 31%, having risen as much as 70% in pre-market trading before settling down.
Analysts suggest the surge indicates a belief that the incident has bolstered Trump’s chances in the upcoming November presidential election. During the attack at one of his rallies, a bullet grazed Trump’s ear before a Secret Service sniper neutralized the gunman.
“I’m supposed to be dead, I’m not supposed to be here,” Trump stated in one of his first interviews post-attack. Among the new endorsements following the incident is billionaire Elon Musk. Susan Schmidt, head of public equity at the State of Wisconsin Investment Board, noted that investors are betting on increased engagement on Truth Social as the election heats up, with many eager to follow Trump’s posts.
However, Wall Street analyst Cary Leahey pointed out that the spike in share prices is more about the election than the company’s business performance. He remarked, “If [Trump’s] chances of being elected go up, is his firm more valuable? Some traders think so. I am confident that if Biden dropped out, Truth Social shares would go down.”
Trump Media and Technology Group was established in 2021 following Trump’s loss in the 2020 election and subsequent bans from major social media platforms for inciting violence after the Capitol Hill riots. Truth Social, which resembles X (formerly Twitter), claims around 2 million active users, though figures vary.
At the current share price of about $40, Trump’s stake in the company is valued at approximately $5 billion, a figure many analysts believe is inflated given the company’s actual performance. The stock’s volatility often mirrors events in Trump’s life and his political prospects. Shares rose sharply in January after Trump’s primary victories and surged again when Trump Media debuted on Nasdaq in March. However, they plummeted when Trump’s criminal trial began in April, where he was eventually convicted of fraud related to hush-money payments to Stormy Daniels.
Despite the recent surge, the share price remains lower than its March peak. Thomas J Hayes, chairman of Great Hill Capital, remarked, “There is no current fundamental business performance of the company that supports this current price but buyers are likely political supporters purchasing shares to support the President’s wealth ahead of the election.”
On Saturday, Trump’s defiant fist-raising to the crowd after surviving the assassination attempt drew loud cheers from his supporters. He later expressed his gratitude, attributing his survival to “luck or God.” He recounted the near-miss, saying, “The most incredible thing was that I happened to not only turn [my head] but to turn at the exact right time and in just the right amount.” Tragically, one audience member died in the attack, and two others were seriously injured. The shooter, identified as Thomas Matthew Crooks, left his motives unclear.
