Finance

Trump Media DJT shares gain on Election Day as traders bet potential GOP candidate win will boost business

Published

4 months ago

November 5, 2024

Republican presidential nominee and former U.S. President Donald Trump reacts at a rally in Las Vegas, Nevada, U.S. September 13, 2024.

Piroschka Van De Wouw | Reuters

Shares of Trump Media & Technology rose on Election Day Tuesday, with traders betting a second Trump presidency would give the business prospects of the Truth Social operator a boost.

The stock, which trades under the ticker DJT — former President Donald Trump’s initials — is also seen as a proxy for Republican candidate’s prospects of retaking the White House. Wall Street research firms listed the stock as one to watch leading into Tuesday.

Shares were last up about 10.8% in premarket trading.

DJT 1-day chart

Year to date, Trump Media, which is majority-owned by Trump, has nearly doubled. However, it has struggled recently, as Vice President Kamala Harris appeared to gain momentum heading into Election Day. Shares have plummeted 33% over the past week. But the stock was up 12% on Monday.

“We are trading this like GameStop on steroids right now,” said Jay Woods, chief capital strategist at Freedom Capital Markets, on CNBC Monday.

“And you know, kudos to those that are trading it making money. But over the long term, the metrics don’t make any sense,” Woods added.

Trump Media shares have seen huge retail trader inflows in the week’s leading up to the election and has been the most-discussed stock on Reddit page WallStreetBets, which gained popularity during the GameStop fueled stock meme fad of 2021.

Despite the wild swings in DJT stock, the latest NBC News poll shows Trump and Harris are neck and neck, with both candidates getting support from 49% of voters.

—With reporting by Kevin Breuninger and Alex Harring

Finance

BRK, HOOD, NKE, PLTR and more

Published

55 minutes ago

February 24, 2025

Business Finance News

Finance

Berkshire advances on surge in earnings, but questions linger about cash

Published

5 hours ago

February 24, 2025

Business Finance News

Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024.

David A. Grogen | CNBC

Berkshire Hathaway shares got a boost after Warren Buffett’s conglomerate reported a surge in operating earnings, but shareholders who were waiting for news of what will happen to its enormous pile of cash might be disappointed.

Class A shares of the Omaha-based parent of Geico and BNSF Railway rose 1.2% premarket Monday following Berkshire’s earnings report over the weekend. Berkshire’s operating profit — earnings from the company’s wholly owned businesses — skyrocketed 71% to $14.5 billion in the fourth quarter, aided by insurance underwriting, where profits jumped 302% from the year-earlier period, to $3.4 billion.

Berkshire’s investment gains from its portfolio holdings slowed sharply, however, in the fourth quarter, to $5.2 billion from $29.1 billion in the year-earlier period. Berkshire sold more equities than it bought for a ninth consecutive quarter in the three months of last year, bringing total sale of equities to more than $134 billion in 2024. Notably, the 94-year-old investor has been aggressively shrinking Berkshire’s two largest equity holdings — Apple and Bank of America.

As a result of the selling spree, Berkshire’s gigantic cash pile grew to another record of $334.2 billion, up from $325.2 billion at the end of the third quarter.

In Buffett’s annual letter, the “Oracle of Omaha” said that raising a record amount of cash didn’t reflect a dimming of his love for buying stocks and businesses.

“Despite what some commentators currently view as an extraordinary cash position at Berkshire, the great majority of your money remains in equities,” Buffett wrote. “That preference won’t change.”

He hinted that high valuations were the reason for sitting on his hands amid a raging bull market, saying “often, nothing looks compelling.” Buffett also endorsed the ability of Greg Abek, his chosen successor, to pick equity opportunities, even comparing him to the late Charlie Munger.

Meanwhile, Berkshire’s buyback halt is still in place as the conglomerate repurchased zero shares in the fourth quarter and in the first quarter of this year, through Feb. 10.

Some investors and analysts expressed impatience with the lack of action and continued to wait for an explanation, while others have faith that Buffett’s conservative stance will pave the way for big opportunities in the next downturn.

“Shareholders should take comfort in knowing that the firm continues to be managed to survive and emerge stronger from any economic or market downturn by being in a financial position to take advantage of opportunities during a crisis,” said Bill Stone, chief investment officer at Glenview Trust Company and a Berkshire shareholder.

Berkshire is coming off a strong year, when it rallied 25.5% in 2024, outperforming the S&P 500 — its best since 2021. The stock is up more than 5% so far in 2025.