Donald Trump Stock Rallies In Run Up To Debate After Sinking 50% Since Guilty Verdict – Investor's Business Daily
BREAKOUT WATCH: Cruise Line Sails Into Buy Zone
Trump Media & Technology (DJT), parent of Truth Social, is surging this week ahead of Thursday’s debate between President Joe Biden and former President Donald Trump. Meanwhile, Trump Media announced Friday it expects to receive around $70 million in proceeds from the cash exercise of warrants on Thursday and Friday.
Trump Media said late last week that if all warrants are exercised for cash, the company could receive approximately $247 million in proceeds. The Donald Trump-backed company has been hemorrhaging cash.
The Trump stock rallied 8.5% to 36.37 during market trade on Tuesday. This follows a 21% jump on Monday.
DJT shares are now advancing above their 200-day moving average after falling around 50% since a Manhattan jury found former President Donald Trump guilty of 34 felonies on May 30 in the court case around falsifying records to cover up hush money paid to a porn star.
In April, Trump Media filed a “preliminary prospectus” with the U.S. Securities and Exchange Commission (SEC) to offer 21.49 million shares of common stock, issuable “upon the exercise of warrants.”
The advance by DJT stock this week comes as Trump and Biden are poised to appear on the CNN-hosted debate stage Thursday.
In May, Trump Media & Technology reported another quarterly loss while revenue once again failed to hit $1 million.
Trump Media reported an adjusted EBITDA loss of $12.1 million, with just over half of that due to one-time payments related to the March closing of its SPAC merger with Digital World Acquisition Corp.
Revenue was just $770,500, the second straight quarter below $1 million.
Trump Media reported a GAAP loss of $327.6 million. That was largely due to $311 million in noncash expenses from converting promissory notes and eliminating previous liabilities.
At the time, the company said it believes it has “sufficient working capital to fund operations for the foreseeable future.”
Trump Media jumped more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump’s tech and social-media platform on March 22. The SPAC company stock had rallied 35% on the day before the change to “DJT.”
In 2024, DJT/DWAC has gained 108%. Trump has a nearly 65% stake in DJT.
Please follow Kit Norton on X @KitNorton for more coverage.
Is Tesla Stock A Buy Or A Sell?
Get Full Access To IBD Stock Lists And Ratings
Learning How To Pick Great Stocks? Read Investor’s Corner
Is Rivian A Buy Right Now After It Launched Its New Product Line?
Stocks Rotating Out Of Nvidia, Bitcoin; Warren Buffett’s Berkshire Is A Buy
6/24/2024 The Dow Jones rose but Nvidia and Super Micro tumbled. Cathie Wood bought a plunging stock while a Warren Buffett…
6/24/2024 The Dow Jones rose but Nvidia and Super Micro tumbled….
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2024 Investor’s Business Daily, LLC. All rights reserved