Who won the debate between Kamala Harris and Donald Trump: Wall Street has given its verdict and the stocks of one candidate are sinking

Who won the debate between Kamala Harris and Donald Trump: Wall Street has given its verdict and the stocks of one candidate are sinking

September 11, 2024 – 18:37

Despite his dominant role in the company, the sharp moves in the stock reflect that investors are betting not only on the company’s financial performance, but also on Trump’s political future.

Restrictions preventing Trump from selling his 114.75 million shares in Trump Media are set to expire at the end of this month.

Wall Street is definitely acting like If Donald Trump had lost Tuesday night’s debate. Investors were quick to punish Trump’s social media business following his widely criticized performance. Other Trump-linked operations, such as Bitcoin and Coinbase, also suffered a reversal on Wednesday. Some funds that own solar and other clean energy stocks also rose significantly.

The actions of Trump Media & Technology Group fell more than 10.4%, leaving them with the lowest opening since the owner of Truth Social went public in late March. This sharp drop reflects an immediate reaction to the presidential debate hosted by ABC, where Vice President Kamala Harris managed to destabilize Trump.

It’s the opposite reaction to what happened to Trump Media stock on June 28, after President Joe Biden’s disastrous performance at the CNN debate. That day, Trump Media initially rose 10%, before losing steam and ending in the red.

The results of the debate

Trump Media has at times become a way for traders to bet on Trump’s political future and his chances of returning to the White House. “The perception in the market is that she won the debate,” Matthew Tuttle, CEO of Tuttle Capital Management, told CNN on Wednesday, pointing to the shifts in Harris’ favor in betting markets overnight.

Not only is Trump Media’s largest shareholder, he’s also the most popular user of Truth Social, the company’s only major product. The company’s ticker symbol is even “DJT.” “I think if you lose, you have to sell and DJT goes down to $1. If you win, you don’t sell and DJT can take off,” Tuttle said.

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Not only is Trump Media's largest shareholder, he's also the most popular user of Truth Social, the company's only major product.

Not only is Trump Media’s largest shareholder, he’s also the most popular user of Truth Social, the company’s only major product.

Restrictions preventing Trump from selling his 114.75 million shares in Trump Media are set to expire at the end of this month. Lifting this agreement would allow him to sell some shares, but experts say it would be nearly impossible for the former president to quickly sell most or all of his holdings without sending the stock price plummeting.

Michael Block, chief strategy officer and co-founder of AgentSmyth, told CNN that Trump Media’s drop on Wednesday appears to be related to what investors saw during the debate.

“Given its lack of earnings and other quantifiable metrics, DJT isn’t exactly a traditional growth or value investment for investors,” Block said in an email. “DJT is a speculative stock and perhaps investors didn’t like the story President Trump told the world last night.”

Source: Ambito

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