The latest poll showing former President Donald Trump ahead of Vice President Kamala Harris is good news for his media company’s stock price.
Shares of Trump Media and Technology Group, the parent company of Trump’s social media platform Truth Social, rose more than 7% during Monday’s trading session on Wall Street before retreating somewhat later in the day.
The stock closed at $18.04, up 5.5%, or 94 cents.
Investors were buying more of the firm’s stock after a new New York Times/Siena College poll released Sunday found Trump pulling slightly ahead of Harris, 48% to 47% — an improvement over earlier polls that showed the vice president presides over the republican .
Trump got more good news Monday after Nate Silver, the data journalist and founder of the forecasting site FiveThirtyEight, released his model showing the former president winning every single state critical of Harris — which would provide an Electoral College landslide of 312 compared. to just 226 for the vice president.
A second Trump presidency would be a boon for Social Truth, which would effectively become the platform he would use to release new statements and news.
Despite the recent wave of positive developments, shares of Trump Media are down 70% from their peak in March, when it debuted on the Nasdaq index. As of Monday, the company had a market capitalization of $3.63 billion.
Given that Trump’s stake amounts to nearly 59% of Trump Media’s outstanding shares, his share of the company is valued at about $2.18 billion — or $4 billion less than at the start of this year.
On Sept. 19, a lock-up provision that prevented Trump, who owns 115 million shares of the company, from selling any of his outstanding shares expires.
That means Trump could dump his shares on the open market and walk away with a handsome 10-figure sum.
But doing so would boost the company’s stock price and destroy what is left of value for more than 600,000 shareholders.
Trump has not indicated what he intends to do. The Post has sought comment from Trump Media.
Last month, Trump Media reported that it lost more than $16 million in the most recent quarter, while also seeing a drop in revenue.
Half of the loss was due to legal fees related to its merger with a company called Digital World Acquisition Corp., which was essentially a pool of money looking for a target to merge with.
In the first quarter, Trump Media reported losses of more than $300 million.
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Image Source : nypost.com
