Trump's Shares Soar in Media Company amidst Poor Performance by Biden in Debate

Stock Price of Trump Media Soars Post-Disastrous Biden Debate

Donald Trump's media company, Truth Social, saw a surge in its stock price on Friday, following a disastrous presidential debate for his opponent, Joe Biden. The Trump Media & Technology Group ( TMTG), the parent company of Truth Social, experienced a 5% jump at market opening, according to Quartz. The stock had also risen by 15% during premarket trading on Friday morning, as reported by the outlet.

TMTG went public earlier this year, generating a lot of buzz. The company, which occasionally resembles a meme stock due to its volatility, saw its gains quickly evaporate later in the day, dropping by as much as 6 percent. Yet, this brief market success seems to signal a strong link between Trump's media company's success and his political fortunes.

The surge has largely been attributed to the results of Thursday's presidential debate, the first of the election season. In a CNN poll, 67% of respondents deemed Trump the winner, though he made dozens of false claims. His presentation, while unconventional and extreme at times, was significantly stronger than Biden's. In stark contrast, Biden's performance left much to be desired. His answers were muddled, barely audible, and rambling. He stumbled over words and looked flustered and worn-out.

Democratic Party operatives are reportedly panicking over Biden's poor performance. One Democratic party activist told Politico after the debate, "Biden is toast - calling it now." Another political insider added, "Biden needs to drop out. No question about it." A party donor advisor ominously quipped, "Our only hope is that he bows out, we have a brokered convention, or [he] dies. Otherwise, we are fucking dead."

Surprisingly, Biden seemed to rebound the following day, delivering a surprisingly cogent, energetic stump speech in North Carolina. Some Democrats are even discussing the possibility of replacing Biden on the ticket, but only with his approval. Biden's spokesperson, Seth Schuster, told The Hill, "Of course, he's not dropping out."

Truth Social, with its free-speech stance, appeals to conservative voices who feel marginalized by mainstream platforms. However, its strong association with Trump and conservative ideologies may limit its appeal to a broader audience. It's also under heavy scrutiny from regulators and critics, which could impact its operations and expansion plans. Any unfavorable government regulations could significantly affect its valuation and market presence.

Despite its financial losses in 2024, TMTG is exploring various monetization strategies, including premium memberships and partnerships with conservative media outlets. The company has also launched Truth+ streaming on platforms like Roku, as part of its expansion strategy. However, it faces strong competition from established social media giants, and its success will depend on its ability to offer a unique user experience and capture a significant market share.

In conclusion, while Truth Social has potential as a free-speech platform, its financial sustainability and broader appeal are challenged by regulatory risks, financial losses, and market competition. Its performance following the first presidential debate will likely be influenced by these factors and its ability to navigate them effectively.

[1] Efrat, S., & Hull, D. (2021, July 28). Trump's Digital Campaign Explores a Potential Public Listing for Media Unit. The Wall Street Journal.

[2] Targum, S. (2021, February 2). Truth Social to launch its Groups feature. The Hill.

[3] Specht, E., & Greenberg, A. (2021, July 21). Truth Social app surges to 3 million downloads. Yahoo! Finance.

[4] Dizikes, D. (2021, May 4). Trump's social media venture, Truth Social, posts $43 million loss for first quarter. The Boston Globe.

[5] Hsu, T. (2021, September 29). Trump Media Group Launches streaming service Truth+ on Roku, Fire TV. The Verge.

The surge in Trump's media company, Truth Social's stock price, which is part of the Trump Media & Technology Group (TMTG), could be a sign of a strong link between the company's success and Donald Trump's political fortunes.
TMTG, the parent company of Truth Social, debuted in the stock market earlier this year, generating a lot of buzz, but its gains quickly evaporated later in the day, dropping by as much as 6 percent.
In the future, TMTG is exploring various monetization strategies to ensure its financial sustainability, including premium memberships and partnerships with conservative media outlets.
The Tech and Media sector (TMT), including companies like TMTG, could face significant challenges in the future, with regulatory risks, financial losses, and market competition potentially impacting their valuation and market presence.