Finance
Trump Media DJT shares gain on Election Day as traders bet potential GOP candidate win will boost business
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
It appears T. Rowe Price is benefitting from the record growth in actively managed exchange traded funds.
Tim Coyne, the firm’s head of ETFs, reports the firm is seeing significant growth in the area — listing the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and T. Rowe Price U.S. Equity Research ETF (TSPA) as two established strategies that can satisfy investor demand.
“I think having that professionally managed portfolio is really beneficial to clients,” Coyne told CNBC’s “ETF Edge” this week. “We’re seeing just… greater volatility [and] uncertainty across both the equity and fixed income markets.“
According to Coyne, the T. Rowe Price Capital Appreciation Equity ETF suits investors who are looking for long-term growth.
“The objective of the fund is to outperform the S&P 500 with lower volatility and greater tax efficiency,” he said. “It’s also a more concentrated portfolio, typically holding around a hundred names.”
As of April 24, the fund’s top holdings include Microsoft, Amazon, and Apple according to the T. Rowe Price website. But it’s not all Big Tech. The ETF also features smaller positions in companies like Becton Dickinson and Roper Technologies.
The T. Rowe Price Capital Appreciation Equity ETF is down about 5% so far this year while the S&P 500 is off about 7% However, the ETF is up close to 8% over the past year — roughly identical to the S&P 500’s performance.
Coyne notes the T. Rowe Price U.S. Equity Research ETF follows a similar strategy, but with a heavier weighting in top tech stocks.
“This is more of a large-cap growth product [T Rowe Price U.S. Equity Research ETF],” he said. “There are components of characteristics of both passive and active here. This fund is actually managed by our North American directors of research. So again, strong fundamental research is going into the stock selection.”
Both the T. Rowe Price U.S. Equity Research ETF and S&P 500 are down around 7% since the beginning of the year. Meanwhile, the fund is up almost 9% over the past year. That’s less than one percent better than the S&P 500’s performance.
T. Rowe Price U.S. Equity Research ETF vs. S&P 500
‘Some form of bear market’
Strategas Securities’ Todd Sohn thinks investment demand for active managers will continue to be strong.
“This is the type of the environment where it [active management] can actually shine,” the firm’s senior ETF and technical strategist said. “We are in some form of bear market. This is where the active manager really can come into hand and offer their solution they are doing right.”
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