Mr. Trump has more than 200 million USD a day

Shares of Trump Media & Technology Group - Trump's media company - skyrocketed on November 9, pushing his fortune up.

At the opening of the November 6 trading session in the US, Trump Media shares increased by 35%, bringing the company's capitalization to 9 billion USD. This code skyrocketed after US media announced that Mr. Donald Trump was elected President of the United States.

Trump is the company's largest shareholder, with 114.75 million shares. His stake was worth $5.3 billion yesterday, up $1.4 billion from the previous session.

However, Trump Media later fell, closing up just 6%. This made Trump's stake now worth $4.1 billion, up $231 million in one day. The US president-elect is worth $6.2 billion, according to Forbes.

Trump Media stock price performance over the past 6 months. Chart: Google Finance

Trump Media shares have recently become a reflection of investors' expectations for the outcome of the US presidential election. Because if Trump is re-elected, Truth Social - a social network run by Trump Media - could become an important media channel for the US President. Similarweb data shows that Facebook currently has 200 times more monthly active users than Truth Social. X has 100 times more and Threads has 20 times more.

The stock has been volatile since it began trading in late March. Trump Media quadrupled in price in five weeks, then fell 41% in three trading sessions last week. The company's market capitalization reached $10.3 billion at one point, more than Elon Musk's X.

Matthew Tuttle, CEO of Tuttle Capital Management, said he was not surprised by Trump Media's performance yesterday, as the stock was purely a bet on Trump's election victory. He also did not rule out the possibility that the stock rose due to a wave of buying to cover short positions.

Still, analysts warn that Trump Media’s current market capitalization is too high given its business fundamentals. Trump Media has been losing money so far, with third-quarter revenue of just $1 million and year-to-date revenue of about $2.6 million.

“The election news may help the company temporarily. But in the long term, they need to have a clear business strategy,” Tuttle concluded.

US stocks soar
All three major US stock indexes hit new highs after Donald Trump was re-elected as US President.

At the end of the trading session on November 6, the DJIA and S&P 500 both recorded their strongest increase in 2 years. Of which, the DJIA increased by 3.5% to a record 1,508 points. The S&P 500 increased to 5,929 points, and the Nasdaq Composite closed at 18,983 points - the highest since February.

US stocks rose as investors expected President-elect Donald Trump to cut taxes and ease administrative procedures to support businesses, although raising import taxes could bring many challenges such as high deficits and inflation.

A trader wearing a Trump supporter hat on the floor of the New York Stock Exchange on November 6. Photo: Reuters

The yield on the 10-year US Treasury note also hit a four-month high of 4.48%. The price of Bitcoin - the world's most popular cryptocurrency - hit a new record when it surpassed $76,000 per coin. The US dollar also had its highest session since September 2022.

Bank stocks contributed the most to the S&P 500's gain, rising 6.2%. Banks are expected to benefit from Trump's loosening of controls.

The Russell 2000 index of small-cap stocks also hit a three-year high. This group focuses on domestically-based companies that are expected to benefit from Trump’s tax cuts, deregulation and less impact from import tariffs.

In contrast, the real estate group fell 2.6%. The reason is that investors assess that Trump's policies will slow down the pace of monetary easing by the US Federal Reserve (Fed). This group is very sensitive to interest rates.

After a two-day policy meeting, the Fed is expected to cut its benchmark interest rate by another 25 basis points on November 7. However, expectations for a further rate hike in December are gradually decreasing.

The stock market's gains were also supported by cryptocurrency and energy stocks. In contrast, the group of renewable energy companies fell.

Markets are now watching the results of the US congressional elections. Republicans have won control of the Senate. If they continue to win the majority in the House, Trump’s policies will face fewer obstacles to implementation.