Shares of former President Donald Trump’s Truth Social social media platform saw a significant surge on Monday following an assassination attempt made by 20-year-old Thomas Matthew Crooks during a rally in Butler, Pennsylvania. The stock value increased by 30% and reached a price of $40, making it the highest figure for the stock in over a month, according to ABC News.
Sevens Report Research Analyst Tyler Richey explained that “the stock serves as a little bit of a proxy for sentiment toward Donald Trump himself.” He believes there has been a resurgence of people – both die-hard Trump fans and fair-weather supporters – who feel this is a critical moment, leading them to invest heavily in the platform. Richey also suggests that the stock’s rise may indicate an opportunity for the company to reinvest funds into improving its service and attracting even more users as the focus shifts to Trump in the coming months.
Investors pushed U.S. stocks higher on Monday while they assessed the situation following the horrific assassination attempt on former President Donald Trump. The event has led many to speculate about the potential “Trump trade,” analyzing which stocks and assets will perform better if Trump were to win back the presidency in November. Wall Street analysts believe that the odds of Republicans taking not only the White House but also the Senate are rising, with the possibility of retaining control of the House for a GOP sweep.
The assassination attempt left former President Trump bloodied and resulted in the death of one of his supporters and injuries to two others. The U.S. Secret Service killed Crooks at the scene. Video footage captured the moment when the shots were fired, with the bullet narrowly missing Trump’s head and nicking his ear before he stood up, raised his fist defiantly, and was rushed offstage.
In April, shares of Truth Social’s parent company, Trump Media, climbed after the company announced it was debt-free and had over $200 million in cash reserves. Last year, Trump’s social media platform generated approximately $4.1 million in revenue. However, the number of users on the platform has not been disclosed by the company. With around seven million followers, Donald Trump may serve as a good proxy for the total subscribers on Truth Social. In comparison, Trump has over 87 million subscribers on Twitter, suggesting that Truth Social may have ample room for growth.