
Former President Donald Trump’s social media company was temporarily halted – twice – after a sudden and precipitous plunge on Election Day following a massive surge.
Shares of Truth Social owner Trump Media & Technology Group, which trades under the symbol “DJT,” briefly turned negative after spiking as much as 17% earlier Tuesday morning. After the stock was halted for volatility, shares began to recover but ended the day down more than 1%.
However, the stock jumped more than 10% in after-hours trading on Tuesday night as election results began to trickle in.
It wasn’t clear what caused the massive sell-off – or the earlier spike. Prediction markets have barely budged Tuesday, and other so-called Trump trades that are betting on a Trump victory remained strong.
“Markets are very thin and skittish, DJT exceptionally so,” said Steve Sosnick, chief strategist at Interactive Brokers.
The company faces a potential make-or-break moment that will be decided by voters Tuesday. The stock gained 12% Monday, rebounding from three days of steep losses last week.
Traders have been betting for months that a Trump victory could enhance the value of Truth Social — though justifying its current price tag would be very difficult even if Trump is back in the White House. Third-quarter results, posted by Trump Media after the closing bell on Election Day, paint the picture of a company still struggling to build a business.
Trump Media is losing money and generates very little revenue. Its main product, conservative social network Truth Social, remains tiny. Yet Trump Media has morphed into a multi-billion-dollar meme stock and a favorite way for traders to bet on how this election cliffhanger will end, inflating the net worth of its biggest shareholder along the way.