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Trump Media & Technology Group

• Trump Media & Technology Group shares rose after Donald Trump confirmed he won't sell his shares.
• The announcement followed Trump's election victory and a previous slump in the company's stock.
• Trump owns a 53% stake in the company, worth about $3.7 billion.
• The stock's volatility remains high, reflecting the impact of political events on market dynamics.

In a recent development, shares of Trump Media & Technology Group (DJT.O) saw a significant rise after U.S. President-elect Donald Trump announced that he had no plans of selling his shares in the company. The company is the owner of Trump's Truth Social media platform. Trump took to Truth Social to dismiss what he termed as rumors about his intention to sell shares, a day after the stock experienced a slump.

There are fake, untrue, and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers, that I am interested in selling shares of Truth, Trump wrote. He further emphasized, THOSE RUMORS OR STATEMENTS ARE FALSE. I HAVE NO INTENTION OF SELLING! Following Trump's announcement, the company's shares closed 15.2% higher on Friday at $31.91, hitting a session high of $33.03. The stock was briefly halted due to volatility after Trump's comments.

Trump's Election Victory and Market Response

This development comes in the wake of Trump's victory over Democrat Kamala Harris in the recent election. On Thursday, the company's shares slumped as speculative bets on Trump winning a second four-year term lost steam a day after his victory. However, the stock rose 5.9% on Wednesday following Election Day.

Trump and Vice President Harris were nearly tied in most opinion polls leading up to the election. However, online betting markets favored the former president more, prompting investors to pile into securities that they viewed as more likely to benefit or come under pressure under his leadership. This resulted in a roughly 200% surge in Trump Media stock in the six weeks before the election.

Trump's Stake in the Company and Market Volatility

Trump, who owns nearly 115 million shares and has about a 53% stake in Trump Media, had already stated in September that he was not selling his shares in the company and would not leave the social media platform he founded. At the stock's price on Friday, his piece of the company was worth about $3.7 billion, while its total market capitalization was at around $7 billion.

The stock's 30-day implied volatility, an options-based measure of how much traders expect the stock to swing in the near term, has retreated from the record high 300% touched right before the election, but remains highly elevated at about 200%, per Trade Alert data. Even though the presidential election is over, options traders see the stock swinging by as much as 25% over the next week, LSEG options data showed.