DJT stock extended a huge rally due to an unfavorable election turn in favor of Donald Trump

Trump Media and Technology Group stock ( DJT ) extended its massive rally early Tuesday, rising as much as 11% in premarket trading as investors bet on former President Donald Trump's improved chances of winning the November election.

Shares of the company, home of the Republican nominee's social media platform Truth Social, jumped 18% to close on Monday.

Over the weekend, both domestic and foreign betting markets moved in favor of a Trump victory, with prediction sites such as Polymarket, Predictit and Kalshi all showing a Trump presidency over Democratic nominee and incumbent Vice President Kamala Harris.

Separately, DJT on Monday announced the web launch of its Truth+ TV streaming service. The app is currently available for access on Android devices and will soon be released as a native Apple iOS app.

DJT shares traded at their lowest level since the company's debut last month after the company's highly publicized lockup period expired. Stocks are also under pressure, with Harris slightly ahead of the former president in earlier polls.

Trump's recent campaign momentum follows Elon Musk's appearance at his rally in Butler, Pa., earlier this month. It is the same place where the former president survived an assassination attempt in July.

Tech billionaire Musk, who serves as CEO of Tesla ( TSLA ) and SpaceX and also owns social media platform X (formerly Twitter), has been outspoken about backing Trump ahead of next month's election. Trump even said he would consider a Cabinet position for Musk but the businessman likely wouldn't be able to serve “with everything he's got going on.”

At the rally, Musk told the crowd that Trump is the only candidate who can “save democracy in America”, adding that if Trump doesn't win it will be the “last election”.

Meanwhile, Harris recently began a flurry of media appearances in which he was pressed on how he would fund some of his proposals around the economy and immigration.

On January 6, 2021, Trump founded Truth Social after shutting down major social media apps like Facebook ( META ) and Twitter, now X, following the Capitol riots. Trump has been reinstated on those platforms. He officially returned to X in mid-August after a hiatus of nearly a year.

But as Truth Social tries to take on social media incumbents, the company's fundamentals have long been questionable.

In August, DJT released second-quarter results that revealed a net loss of $16.4 million, nearly half of which was tied to costs related to the company's SPAC deal. The company also reported revenue of just under $837,000 for the quarter ended June 30, down 30% year over year.

Earlier this month, the company revealed that its COO had resigned in September.

Trump retains about 60% interest in DJT. At current levels of about $27 a share, Trump Media boasts a market cap of about $5.5 billion, giving the former president a stake worth about $3.3 billion. Just after the company's public debut, Trump's shares were worth just $4.5 billion.

Trump Media went public on Nasdaq in late March after merging with special purpose acquisition firm Digital World Acquisition Corp. But the stock has been on a bumpy ride since then, with shares oscillating between highs and lows as moves are typically tied to a volatility. news cycle

Over the past six months, the stock is off about 15% — a huge improvement on the heels of a rally after shares hit their lowest point last month.

Stakeholders, including former presidents, were subject to a six-month lockup period before being able to sell or transfer shares. That lockup expired on September 19, although Trump said at the time that he would not sell his stake.

“I have no intention of selling,” the former president told reporters at a news conference before the lockup expired. “I love it. I use it as a way to get my words out.”

Alexandra Canal A senior reporter at Yahoo Finance. Follow him in X @Ali_Khal, LinkedIn, And email her at alexandra.canal@yahoofinance.com.

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