Shares of former President Donald Trump’s social media platform Truth Social soared in early trading on Monday, extending a rally that began in the immediate aftermath of an assassination attempt two days earlier.
In early trading on Monday, shares climbed about 30% to a price of $40. That figure marked the highest level for the stock in more than a month, but shares still stood well below a peak of about $62.
“The stock serves as a little bit of a proxy for sentiment toward Donald Trump himself,” Tyler Richey, an analyst at Sevens Report Research, told ABC News.
“I think there’s a resurgence of people — your die-hard Trump fans and fair-weather supporters — who think, ‘This is a life or death situation, we’re going all in,'” Richey added.
Shares began rising in pre-market trading almost immediately after an assassination attempt at a Trump rally in Butler, Pennsylvania, on Saturday. The strong performance in recent days indicates the latest in a series of dramatic price swings for the stock.
In the immediate aftermath of Trump’s felony conviction in his hush money case in May, the stock tumbled about 15%, before soon rallying higher than the pre-conviction level.
In March, shares vaulted from an initial offering price of about $50 to a peak of nearly $80. Over the ensuing two weeks, the price fell nearly 70%, reaching a low of about $23.
Analysts who previously spoke to ABC News described the performance of Truth Social as the characteristic fluctuation of a so-called “meme stock.” The term – made famous by pandemic-era examples such as GameStop and AMC – indicates a company that largely appeals to investors on the basis of ideology rather than financial outlook.
Traders work on the floor of the New York Stock Exchange (NYSE) on July 11, 2024 in New York City.
Spencer Platt/Getty Images
Truth Social generated roughly $4 million in revenue last year, government filings show. Meanwhile, the company reported $58 million in net losses over that period. By comparison, Instagram-parent Meta delivered nearly $135 billion in revenue last year, company earnings revealed.
The strong performance for Truth Social on Monday could grant the company an opportunity to reinvest funds and improve the service, Richey said, noting the possibility of an increase in users as Trump draws continued attention in the coming months.
“The financials are atrocious,” Richey said. “But the prospects, while a little doubtful, are still there.”
“If this generates a significant uptick in users, then that could be bullish. Or it becomes a blip of short-term optimism,” he added.
For now, the absence of financial underpinning leaves Truth Social vulnerable to volatility in response to even mildly negative or positive news, experts previously told ABC News.
“The only thing that you can predict is that there will continue to be volatility,” Jay Ritter, a professor of finance at the University of Florida, told ABC News.
The surge in the price of Truth Social on Monday coincided with a swell across the wider stock market. Each of the major stock indexes ticked upward in early trading on Monday, including a record high for the Dow Jones Industrial Average.
In the wake of an assassination attempt on former President Donald Trump, the stock of his social media platform, Truth Social, has seen a significant rise. The incident, which occurred at a rally in Texas, has sparked renewed interest in the controversial figure and his digital platform.
Truth Social was launched earlier this year as a response to what Trump and his supporters viewed as censorship on mainstream social media platforms. The platform aims to provide a space for conservative voices to express their opinions without fear of being silenced or de-platformed.
Following the assassination attempt, investors flocked to Truth Social, driving up its stock price by over 50%. This surge in interest can be attributed to several factors. Firstly, the incident has put Trump back in the spotlight, generating increased media coverage and public attention. This increased visibility has likely led to more people seeking out Truth Social as a way to stay connected with the former president and his supporters.
Additionally, the assassination attempt has highlighted the ongoing political tensions in the country, with many conservatives feeling increasingly marginalized and under threat. Truth Social offers a platform for these individuals to come together and share their views in a supportive environment.
Despite its growing popularity, Truth Social has faced criticism for its handling of misinformation and hate speech. Critics argue that the platform allows dangerous rhetoric to spread unchecked, leading to potential real-world harm.
In response to these concerns, Truth Social has implemented stricter moderation policies and hired a team of fact-checkers to monitor content on the platform. However, some critics remain skeptical of these efforts, questioning whether Truth Social can truly provide a safe and responsible space for political discourse.
As the stock of Truth Social continues to rise, it remains to be seen how the platform will navigate these challenges and maintain its momentum. With Trump’s continued influence in conservative politics and the ongoing polarization of American society, Truth Social is likely to remain a key player in the digital landscape for the foreseeable future.
