Trump Media shares gave up most of their Election Day gain but remain positive

Shares of Trump Media & Technology lost momentum in afternoon trading on Tuesday.

The stock, which trades under the ticker symbol DJT – former President Donald Trump’s initials – is seen as a possible indicator of the Republican candidate’s prospects of retaking the White House. Wall Street research firms rated the stock as a stock to watch as of Tuesday. Traders are also analyzing operator Truth Social’s business prospects depending on who prevails in the presidential election.

Shares were last up about 4% midday after being briefly halted due to volatility. At the beginning of the session, it rose as much as 15% before giving up this increase and moving into the red. The action in Trump Media was intense, with the stock doubling its average daily trading volume over the past 30 days.

Of course, the stock isn’t necessarily a pure bet on whether Trump will win. The stock has already risen sharply this year and could be influenced by other factors such as profit-taking.

Year to date, Trump Media, which is majority owned by Trump, is up nearly 90%. However, it has struggled recently as Vice President Kamala Harris appeared to be gaining momentum ahead of Election Day. Shares have plunged 36% over the past week, although they rose 12% on Monday.

“We act like this GameStop I’m on steroids right now,” Jay Woods, chief global strategist at Freedom Capital Markets, said on CNBC on Monday.

“And you know, kudos to those who make money from it. But in the long run, the metrics don’t make sense,” Woods added.

Trump Media shares saw huge inflows from retailers in the week before the election. It was also the most discussed stock on Reddit page WallStreetBets, gaining popularity during 2021’s stock meme fad fueled by GameStop.

Although the stock is seen as a way to invest in a Trump victory, the election is considered a close race as Americans go to the polls on Tuesday.

— With reporting by Kevin Breuninger.

Correction: Jay Woods is chief global strategist at Freedom Capital Markets. An earlier version misstated its title.