Shares in Donald Trump's social media company have surged after he survived an assassination attempt on Saturday. Shares in Trump Media, which runs the Truth Social platform, closed up about 31%. The price had risen as much as 70% in pre-market trading over the weekend before falling back again.
Analysts said the gains reflected bets that the shooting had improved Mr Trump's chances of winning the US presidential election in November. A bullet caught the former president's ear during one of his election rallies, shortly before the gunman was shot dead by a Secret Service sniper.
“I’m supposed to be dead, I’m not supposed to be here,” Mr Trump said in one of his first interviews since the attack. Billionaire Elon Musk is among those who have formally endorsed Mr Trump since the shooting.
“As the election intensifies, investors are betting that more individuals will tune in to the social media platform to express their views as well as be among the first to view the postings from President Trump and his team,” said Susan Schmidt, head of public equity at State of Wisconsin Investment Board.
However, Wall Street analyst Cary Leahey said this was a trade “about the election more than the business”, noting that Truth Social had been struggling to grow.
“If [Trump's] chances of being elected go up, is his firm more valuable? Some traders think so.
“I am confident that if Biden dropped out, Truth Social shares would go down,” he added.
Mr Trump founded the Trump Media and Technology Group in 2021 after he lost the 2020 presidential election and was temporarily booted off major social platforms, including Twitter and Facebook, which accused him of inciting violence after the Capitol Hill riots.
Truth Social largely follows the same format as X, formerly Twitter, and has about 2 million active users, although claims vary according to difference sources.
Mr Trump is the majority shareholder.
— CutC by bbc.com
