United States, United States Election | Donald Trump shares up 175 percent

WASHINGTON DC, USA (NETTAVISEN): – There are no real investors who think this is a smart investment, says investment director Robert Næss at Nordea Wealth Management to Nettavisen.

On Tuesday, the share price of Trump Media & Technology Group Corp., which operates the social media platform Media Social, rose 5 percent for most of the day. And this is not a single movement, because since September the arrows have been pointing up for the company.

DJT’s share has risen as much as 175 percent in the past month. This means that former President Donald Trump, who owns 59 percent of the company, has increased his fortune on paper by around NOK 44 billion.

A dangerous stock

– The company has a fairly high market value, around 6.7 billion dollars or around NOK 74 billion. That’s a lot of money for a company that had less than a million dollars in revenue last quarter, and has 860,000 monthly users, Næss says.

– This is not related at all, he believes.

Truth Social X, formerly known as Twitter, has 586 million monthly active users. Næss compares DJT’s share with domestic shares such as Norway a few years ago, SAS and NEL. That is, risky shares, in which many small investors traded and where the big movements were.

– You can earn a lot in the short term, says the head of Nordea.

The movement in the share price is also linked to the probability that the former president will win his second presidential election in two weeks. When Joe Biden withdrew as a candidate in July, leaving the place to Kamala Harris, for example, the level fell.

– The course goes up and down after the polls, which have gone Trump’s way in recent weeks, explains Næss.

Verdi basic lite

He is assisted by investment economist at Nordnet Mads Johannesen.

– Trump’s stock is in many ways the result of the presidential election. If you look at famous “betting sites” such as Polymarket, you will see the same pattern. More and more investors are positioning themselves according to the probability that Trump will win the election, Johannesen believes.

Like Næss, he says the company itself has little intrinsic value. But if Trump becomes president again, he can naturally make a positive impact.

– In any case, this is a company that will be related to the probability of whether Trump will become president or not, explains the Nordnet economist.