Trump Media Stock Tumbles as Musk, Harris Make Election Waves. DJT Rally Faces This Threat.
Wednesday, Oct 30, 2024 2:21 pm ET
2min read Trump Media & Technology Group (TMTG) stock has been on a rollercoaster ride since its merger and public listing in late March 2024. The company, majority-owned by former President Donald Trump, has seen its valuation skyrocket to as much as $11 billion, driven largely by Trump's association with the brand. However, recent developments, including Elon Musk's political endorsements and Kamala Harris' campaign strategies, threaten to disrupt the company's trajectory.
TMTG's stock has tumbled more than 70% from its peak, following the disclosure of significant losses and scant revenue. The company reported a net loss of $58.2 million in 2023, compared to a profit of $50.5 million in 2022. Revenue was a mere $4.1 million, with a 39% year-over-year decline in the fourth quarter to just $751,500. These financials have raised concerns about the company's ability to continue as a going concern, with accountants warning of substantial doubt.
Elon Musk, the world's richest man and owner of X (formerly Twitter), has emerged as a significant player in the 2024 election. His endorsement of Donald Trump and use of X to amplify Trump's message have likely contributed to the surge in Trump Media's stock valuation. However, Musk's actions have also drawn criticism and raised concerns about his undue influence over public conversation, potentially tarnishing the image of Trump Media and its stock.
Musk's recent cash giveaways to registered voters in swing states, offering $100 for signing a petition and another $100 for each referral, have further fueled controversy. Critics argue that these payments may be illegal, as federal law prohibits paying or accepting payment for registering to vote or voting itself. While Musk maintains that the payments are for signing a petition, the limitation to registered voters raises questions about the true intent behind the scheme.
Kamala Harris' campaign, focused on unity and progress, counters Musk's influence by emphasizing her commitment to protecting American values and institutions. Her policy proposals, such as expanding Medicare to cover home health care and defending women's reproductive rights, appeal to a broad range of voters, potentially drawing support away from Trump Media. Harris' campaign strategy, including rallies at symbolic locations like the Ellipse, highlights the contrast between her inclusive vision and Trump's divisive rhetoric, which could lead to a shift in public opinion and impact Trump Media's stock performance.
Geopolitical tensions, particularly between the US and Russia, could also influence Musk's actions and, in turn, Trump Media's stock valuation. Musk's regular contact with Russian officials, including Putin, as reported by the Wall Street Journal, highlights the potential for geopolitical influence on his decisions. If these tensions escalate, it could lead to regulatory scrutiny or sanctions against Musk or his companies, affecting Trump Media's stock valuation.
In conclusion, Trump Media's stock performance is closely tied to the political landscape and the actions of influential figures like Elon Musk and Kamala Harris. As the 2024 election approaches, investors should closely monitor the evolving dynamics between these key players and their potential impact on Trump Media's stock valuation. While Musk's endorsement and use of X may initially boost Trump Media's stock, the controversy surrounding his actions and Harris' campaign strategies could ultimately pose significant threats to the company's rally.
TMTG's stock has tumbled more than 70% from its peak, following the disclosure of significant losses and scant revenue. The company reported a net loss of $58.2 million in 2023, compared to a profit of $50.5 million in 2022. Revenue was a mere $4.1 million, with a 39% year-over-year decline in the fourth quarter to just $751,500. These financials have raised concerns about the company's ability to continue as a going concern, with accountants warning of substantial doubt.
Elon Musk, the world's richest man and owner of X (formerly Twitter), has emerged as a significant player in the 2024 election. His endorsement of Donald Trump and use of X to amplify Trump's message have likely contributed to the surge in Trump Media's stock valuation. However, Musk's actions have also drawn criticism and raised concerns about his undue influence over public conversation, potentially tarnishing the image of Trump Media and its stock.
Musk's recent cash giveaways to registered voters in swing states, offering $100 for signing a petition and another $100 for each referral, have further fueled controversy. Critics argue that these payments may be illegal, as federal law prohibits paying or accepting payment for registering to vote or voting itself. While Musk maintains that the payments are for signing a petition, the limitation to registered voters raises questions about the true intent behind the scheme.
Kamala Harris' campaign, focused on unity and progress, counters Musk's influence by emphasizing her commitment to protecting American values and institutions. Her policy proposals, such as expanding Medicare to cover home health care and defending women's reproductive rights, appeal to a broad range of voters, potentially drawing support away from Trump Media. Harris' campaign strategy, including rallies at symbolic locations like the Ellipse, highlights the contrast between her inclusive vision and Trump's divisive rhetoric, which could lead to a shift in public opinion and impact Trump Media's stock performance.
Geopolitical tensions, particularly between the US and Russia, could also influence Musk's actions and, in turn, Trump Media's stock valuation. Musk's regular contact with Russian officials, including Putin, as reported by the Wall Street Journal, highlights the potential for geopolitical influence on his decisions. If these tensions escalate, it could lead to regulatory scrutiny or sanctions against Musk or his companies, affecting Trump Media's stock valuation.
In conclusion, Trump Media's stock performance is closely tied to the political landscape and the actions of influential figures like Elon Musk and Kamala Harris. As the 2024 election approaches, investors should closely monitor the evolving dynamics between these key players and their potential impact on Trump Media's stock valuation. While Musk's endorsement and use of X may initially boost Trump Media's stock, the controversy surrounding his actions and Harris' campaign strategies could ultimately pose significant threats to the company's rally.
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