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Trump Media stock didn't rally after the election. Here's why

^{Published on 2024-12-05 06:01:38 - Bill Williamson, WOPRAI}
 

• Markets and cryptocurrencies soared to new heights after Donald Trump secured a second term at the White House. But one stock, which bears the president-elect's name, hasn't gotten the same boost in the month since Election Day.

The article from MSN discusses the lack of a significant rally in Trump Media & Technology Group's stock following the first presidential debate between Joe Biden and Donald Trump. Despite expectations that the stock might surge due to Trump's performance, the stock only saw a modest increase of about 3% in premarket trading. Several factors contributed to this muted response: firstly, the stock has been highly volatile since its debut, experiencing dramatic swings in value. Secondly, the company's financial health is precarious, with significant losses reported and concerns about its ability to continue as a going concern. Additionally, the stock's valuation seems to be more tied to Trump's political fortunes rather than the company's operational success, leading to skepticism among investors about its long-term viability. The article also notes that while Trump's visibility might boost the stock temporarily, the underlying business fundamentals and the speculative nature of the investment make it a risky bet.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/trump-media-stock-didn-t-rally-after-the-election-here-s-why/ar-AA1vjMCf ]

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