Trump Media & Technology Group saw its stock react with volatility on Thursday after the release of new federal allegations surrounding Donald Trump’s attempts to overturn the 2020 election.
Trading under the ticker DJT, shares increased by 0.9% to $15.95 in premarket trading, continuing their recent rebound from historic lows.
This market movement followed the US Department of Justice’s release of a detailed court document aimed at challenging Trump’s defense strategy in ongoing legal battles.
Court filings challenge Trump’s presidential immunity
A newly unsealed 165-page document, made public by Special Counsel Jack Smith’s office, disputes Trump’s claims of presidential immunity in relation to his efforts to reverse the election outcome.
The filing argues that Trump’s actions to overturn the results were undertaken in a private capacity, rather than as part of his official presidential duties, potentially weakening his legal defense.
These revelations come just over a month before the 2024 presidential election, where polls indicate a tight contest between Trump and Vice President Kamala Harris, adding another layer of complexity to the ongoing legal and political landscape.
Stock steadies despite underlying concerns
Despite the legal challenges tied to Trump Media’s largest shareholder, the company’s stock has managed to show resilience.
Trump Media, which operates Truth Social, has seen its share price gradually climb after reaching a record low of $12 following the expiration of an insider trading lockup period.
Analysts highlight that DJT stock does not follow traditional valuation metrics, like earnings or revenue, and tends to be driven more by market sentiment linked to Trump’s political standing.
With Trump retaining a 57% stake in the company, the stock’s price movements have been heavily influenced by political events and developments around his legal troubles.
Trump’s recent confirmation that he plans to hold onto his shares has helped stabilize the stock price somewhat, though it still trades significantly below its peak of $66 in late March, representing a drop of over 75%.
Financial analysts continue to note that the stock’s performance remains highly sensitive to Trump’s political and legal challenges, making it difficult for investors to evaluate the company’s long-term potential.
The interplay between legal developments, investor sentiment, and stock market behaviour underscores the challenges of investing in politically connected companies like Trump Media.
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