Shares of former President Donald Trump’s social media platform Truth Social saw a remarkable 30% surge in early trading on Monday, following an assassination attempt at a Trump rally just two days earlier. The stock price reached $40, the highest level in over a month, although still below its peak of $62.
Analysts attribute the rally to a resurgence of support for Trump, with investors viewing the stock as a proxy for sentiment towards the former president. Tyler Richey, an analyst at Sevens Report Research, noted that die-hard Trump fans and fair-weather supporters may be going all in on the stock in light of recent events.
Truth Social has experienced significant price swings in the past, with fluctuations reminiscent of meme stocks like GameStop and AMC. Despite generating only $4 million in revenue last year and reporting $58 million in net losses, the platform’s strong performance on Monday could provide an opportunity for reinvestment and potential user growth.
However, experts caution that the lack of financial stability leaves Truth Social vulnerable to volatility in response to any news, positive or negative. Jay Ritter, a finance professor at the University of Florida, emphasized that unpredictability is a constant in the stock market.
The surge in Truth Social’s price coincided with a broader uptick in the stock market, with all major indexes showing gains in early trading on Monday. The positive momentum suggests a potential for continued growth and optimism for investors in the coming days.
