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Shares of Trump Media jumped ahead of the debate with Harris

Shares of Trump Media & Technology Group, majority owned by former US President Donald Trump, advanced for a second day on Tuesday ahead of the debate between the Republican presidential nominee and Vice President Kamala Harris.

The stock jumped more than 4% and boosted the value of Trump’s stake in the company to $2.2 billion days before he and other insiders were allowed to sell their shares for the first time since the company went public in March.

Trump and Democratic front-runner Harris met for the first time Tuesday night in their only scheduled debate, a clash that could prove pivotal in their neck-and-neck race for the White House.

Including Monday’s gains, the stock is up nearly 11% this week.

“It’s definitely a sign of excitement before the debate and I hope Trump does well tonight,” said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. “You have Trump supporters saying, ‘I’m going to buy DJT because I support Trump’, as a statement.”

The jump in shares of Trump Media, which owns the Truth Social app, follows weeks of declines that sent it to record lows last week as Harris narrowed or erased Trump’s lead in the polls ahead of the Nov. 5 election.

The debate follows a poll published Sunday showing Trump up by one percentage point over Harris at 48%-47%.

With eight weeks to go before the election, contracts for a Harris victory are trading at 53 cents, with a payout of about $1, on political betting site PredictIt. Contracts for a Trump victory are at 52 cents.

Trump Media saw its value rise to nearly $10 billion following its stock market listing in March, boosted in part by Trump supporters and traders betting that he would win the election.

Strategists say Trump Media’s stock market value, now $3.8 billion, is unrelated to its business fundamentals. In the June quarter, Trump Media reported a loss of $16.4 million and revenue of $837,000 — the equivalent of the sales of two Starbucks stores.

According to provisions related to Trump Media’s listing, Trump and other insiders will be allowed to sell stock starting later this month, potentially flooding the market with more shares.

If the stock price remains at $12 or higher in any of the 20 trading days since Aug. 22, then Trump will be free to sell shares from September 20. If not, he is eligible to sell shares from September 26. save 18.85 US dollars.

—Noel Randewich, Reuters


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