Truth Social Shares Surge After Trump Survives Assassination Attempt
By Faarea Masud and Natalie Sherman, Business Reporters, BBC News
Shares in Donald Trump’s social media company, Truth Social, surged after the former president survived an assassination attempt on Saturday. The company’s stock, managed by Trump Media, closed up about 31%, having risen as much as 70% in pre-market trading before stabilizing.
Market Reactions and Analyst Insights
The spike in share price reflects investor optimism about Mr. Trump’s improved chances in the upcoming U.S. presidential election. A bullet grazed Mr. Trump’s ear during an election rally, but the attacker was quickly neutralized by a Secret Service sniper.
“I’m supposed to be dead, I’m not supposed to be here,” Mr. Trump said in one of his first interviews following the incident. Billionaire Elon Musk is among those who have endorsed Mr. Trump since the attack.
Susan Schmidt, head of public equity at the State of Wisconsin Investment Board, noted, “As the election intensifies, investors are betting that more individuals will tune in to the social media platform to express their views and be among the first to view the postings from President Trump and his team.”
Wall Street analyst Cary Leahey commented, “This is a trade about the election more than the business. If [Trump’s] chances of being elected go up, is his firm more valuable? Some traders think so. I am confident that if Biden dropped out, Truth Social shares would go down.”
Company Background and Performance
Mr. Trump established Trump Media and Technology Group in 2021 after being banned from major social media platforms following the Capitol Hill riots. Truth Social, modeled after Twitter (now X), boasts approximately 2 million active users, though figures vary by source. Mr. Trump remains the majority shareholder.
At a current share price of roughly $40, Mr. Trump’s holdings are valued at around $5 billion, a figure many analysts believe is not justified by the company’s sales and operations. The stock price has fluctuated significantly, often tied to Mr. Trump’s personal and political fortunes.
Earlier this year, the stock rallied after Mr. Trump’s primary victories and debut on the Nasdaq, but it slumped at the start of his criminal trial in April, which resulted in a fraud conviction related to hush-money payments to adult-film actress Stormy Daniels. Despite the recent surge, the share price is still below March levels.
“There is no current fundamental business performance of the company that supports this price, but buyers are likely political supporters purchasing shares to support the President’s wealth ahead of the election,” said Thomas J Hayes, chairman of Great Hill Capital.
The Assassination Attempt
Images of Mr. Trump, with blood on his face, defiantly raising his fist after the assassination attempt, stirred his supporters. “I was saved by luck or God,” Mr. Trump later told U.S. media. He explained that a timely turn of his head spared him from a fatal injury.
The attack resulted in one audience member’s death and serious injuries to two others. The gunman, identified as Thomas Matthew Crooks, was killed by Secret Service. The motive behind the shooting remains unclear.
Source: BBC News
