(Bloomberg) -- Shares in Donald Trump’s media company surged as the Republican was elected the 47th president of the United States and investors touted the stock across social media platforms.
Trump Media & Technology Group Corp. surged as much as 62% in premarket trading after Trump addressed supporters at his election watch party in West Palm Beach, Florida, on Wednesday. The stock later pared some of the gains.
In what he described as the “greatest political comeback” in US history, Trump prevailed in an unprecedented race during which he was convicted of felonies, survived two assassination attempts and crushed a challenge from Vice President Kamala Harris.
Banks, prison operators and crypto-related stocks also rallied during the premarket session after Trump’s win.
The media company’s stock, which trades under Trump’s initials and went public in March through a blank-check merger, has been volatile since its debut as investors ignored its fundamentals. Shares spiked after the attempted assassination of Trump in Pennsylvania in July, then slumped when Harris entered the race.
Shares jumped on their March debut before slumping nearly six months later. The stock more than doubled in October before swinging in the days leading up to Tuesday’s vote.
The company held onto a greater than $7 billion valuation through Tuesday’s close despite losing more than $19 million in the third quarter while delivering just $1 million in revenue. Truth Social, its X-lookalike platform, has struggled to establish a modest user base, according to third-party trackers.
As votes stacked up in key swing states for him, Trump trade plays erupted. Bitcoin soared to a record high, and stocks including prominent Trump-ally Elon Musk’s Tesla Inc. rallied in premarket trading.
--With assistance from Joel Leon.
(Updates with election result.)
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