The 2024 presidential election is just around the corner, and Trump Media stock is now up roughly 176% over the last month.
Trump Media (DJT 11.45%) stock made big gains again across the last week of trading. The company’s share price closed out the week up 31.7%, according to data from S&P Global Market Intelligence.
Trump Media stock gained ground in conjunction with the company’s Truth+ streaming service across several platforms and shifts in perception about Donald Trump’s chances of winning the 2024 presidential election. The company’s share price is now up 176% over the last month.
Trump Media stock’s hot streak continues
On Oct. 21, Trump Media published a press release announcing that its Truth+ streaming app had launched on Apple’s iOS and Apple TV platforms. The following day, the company announced that the service had launched for devices using Alphabet‘s Android TV platform. The day after that, Trump Media announced that the company had launched on Amazon‘s Fire TV platform.
While the debut of Truth+ across multiple platforms likely played some part in pushing Trump Media’s share price higher, most of the gains likely stem from perceptions that a win for Donald Trump in the presidential election is looking more likely. Some polls and political betting prediction sites have shown shifts in the former president’s favor in his race against Vice President Kamala Harris, and that’s corresponded with a continued rally for Trump Media stock.
What comes next for Trump Media stock?
In the very near term, Trump Media stock will likely continue to move in accordance with the outlook and outcome of the U.S. presidential race. If things work out in Donald Trump’s favor on that front, Trump Media could continue to see bullish meme-stock momentum. On the other hand, the stock could see a dramatic pullback if Trump winds up losing the election.
While Trump Media stock has been red-hot over the last month, these gains likely have very little to do with the underlying fundamentals of the business. The business recorded just $828,000 in sales last quarter. Meanwhile, the company is valued at roughly $7.7 billion.
If Trump Media stock can leverage the strength of the visibility of the Trump brand, it may be able to build a business with staying power. But as it stands, the business remains in a very nascent state — the company is valued at highly speculative and growth-dependent levels that could set the stage for big pullbacks when election-related and meme-stock-related catalysts recede.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
