Two stocks associated with Donald Trump surged as the former US president strengthens market sentiment on his 2024 comeback.
Two shares linked to the former US President capitalised on his latest success in Iowa and at the New Hampshire primary earlier this week, as Trump aims for a possible new presidency.
After Trump’s rival Ron DeSantis quit the primary race, the New Hampshire primary brought success to not only Trump but also his blank check company Digital World Acquisition Corp (DWAC) as well as video-sharing platform Rumble, one with close ties to Trump’s social media platform.
The ultimate Donald Trump stocks
DWAC is a special purpose acquisition company (SPAC), with the main purpose of taking the Trump Media & Technology Group (TMTG) and its social media platform Truth Social, public.
DWAC’s share prices had nearly tripled on a year-to-date basis through Tuesday’s close – up 190% ahead of the New Hampshire primary results – with at least a section of the market betting on a second Trump presidency.
DWA’s shares soared spectacularly after Trump’s latest success at the New Hampshire primary, surpassing $50 whereas just days before the shares were worth less than $20. The jump in a few days was around 190%, according to Nasdaq, and even though the enthusiast evaporated since and the share has lost, it has still increased 120% in the past month.
Another stock that became popular among investors recently was the video-sharing platform Rumble, which is seen as a YouTube rival with less censorship and is popular among Republican voters. Rumble shares gradually lost their value, marking the bottom with $3.33, which is one-third of the original share price in mid-January 2024. However, the New Hampshire primary has boosted the value to $5.68.
In the last few days, however, both these shares lost part of what they gained up until the primary.
There is plenty of speculation moving the prices as risk-hungry investors try to catch a wave of success, but it is important to note that these shares seem to be priced according to the former US President’s prospects, at the moment.
Concerns aboutDWAC’s fundamentals remain
However, hype-driven stock bull runs don’t usually last too long and several concerns have emerged recently about DWAC not having strong enough fundamentals.
It has also been likened to meme stocks like GameStop, with most investors being caught up in the momentum of the stock, without deeper examination of the long-term viability.
Trump is also still embroiled in a barrage of legal cases and issues, some of them still regarding the US Capitol riots back in January 2021. This has already resulted in his disqualification from the 2024 ballot in Colorado. However, similar attempts have so far failed in other states such as New Hampshire, Minnesota and Michigan.
Trump’s lawyers have tried to contest the ruling by claiming that he could not be held personally responsible for the riots. An appeal to the US Supreme Court is likely to clarify whether Trump is allowed to run in each state.