Trump Media Stock Rises After Poll Shows Lead Over Harris
- Trump Media's stock rose over 7% after a poll showed Trump leading Harris 48% to 47%.
- The company reported a loss of over $16 million in the last quarter, largely due to legal expenses.
- The stock's rise is positive for investors, but potential share sales by Trump could harm the company's value.
Shares of Trump Media and Technology Group, which owns the social media platform Truth Social, increased by over 7% following a New York Times/Siena College poll indicating that former President Donald Trump is slightly ahead of Vice President Kamala Harris, with 48% to 47%. This marks a shift from previous polls where Harris was leading. Additionally, data journalist Nate Silver's model suggests Trump could win all critical swing states, potentially leading to a significant Electoral College victory. Despite the positive stock movement, Trump Media reported a loss of over $16 million in the last quarter, primarily due to legal expenses related to its merger with Digital World Acquisition Corp. The company’s market capitalization stands at $3.63 billion, with Trump owning nearly 59% of the shares, valued at approximately $2.18 billion. This is a significant decrease from earlier valuations this year. A lockup provision preventing Trump from selling his shares will expire on September 19, allowing him to potentially sell 115 million shares. However, such a move could drastically reduce the stock price and negatively impact over 600,000 shareholders. Trump has not disclosed his plans regarding the sale of his shares. The recent polling data and stock performance reflect a complex interplay of political dynamics and financial realities for Trump Media. While the stock's rise is encouraging for investors, the company's financial struggles and potential share sales pose risks that could undermine its market position.