With the upcoming election, a few stocks are gaining momentum as traders speculate on what a potential Trump victory could mean for their valuations. Each of these companies has connections—direct or indirect—to Donald Trump, making them prime candidates for volatility as the political landscape shifts. These stocks have seen significant inflows from retail investors, spiking interest on forums like WallStreetBets, and they’re poised for more potential movement as election day approaches. Here’s a closer look at three names generating buzz.
Trump Media & Technology Group (DJT) – Riding the Election Wave
Trump Media, the parent company of TruthSocial, has been the biggest name among Trump-linked stocks in recent weeks. The stock’s wild swings reflect investor sentiment tied to the upcoming election, with shares surging over 160% in October, marking the first positive month since March. Year-to-date, DJT has gained over 140%.
As Trump holds a significant stake of 114 million shares in Trump Media, valued at over $5 billion, the company has a uniquely direct link to his fortunes. This stake represents about 75% of Trump’s net worth, and he has no plans to sell. Retail interest has surged recently, with net inflows hitting $14.4 million on a single day last week, and it’s the most-discussed stock on WallStreetBets over the past week, with more than 17,000 mentions this year.
It’s worth noting that DJT’s valuation is driven largely by speculation rather than fundamentals. As UC Irvine professor Christopher Schwarz points out, Trump Media has “no fundamental value” and is trading on pure market speculation around the election outcome. With no profits and limited fundamentals, DJT is likely to stay volatile as the election date draws closer.
Phunware (PHUN) – A Software Play with Trump Ties
Phunware, a mobile software and blockchain company, is another name that has attracted retail traders hoping for an election-linked bump. Known for creating Trump’s campaign app, Phunware also lists prominent clients like Marriott, Atlantis, and the Mayo Clinic. The stock has been highly volatile, with its price swinging between $3 and $24 over the past year.
Investor interest in Phunware spiked in October, with net inflows rising and shares climbing more than 140% this month alone. For 2024, the stock is up over 80%, putting it on track to break a two-year losing streak. All four analysts polled by LSEG rate the stock a “Buy,” with an average price target of $15, suggesting nearly 90% potential upside. Analysts’ estimates vary widely, though, ranging from $8 to $20, reflecting the risk and uncertainty surrounding Phunware. Like Trump Media, this stock is a speculative play with no earnings to show in recent years, so investors should be cautious of its inherent volatility.
Rumble (RUM) – Conservative Video Platform with Election Appeal
Rumble, the video platform popular with conservative audiences, is also seen as a potential beneficiary of a Trump win. The company went public in September 2022 with backing from Peter Thiel and has since carved a niche as a conservative alternative to mainstream platforms. While its connection to Trump isn’t as direct, Rumble remains on watchlists for those speculating on Trump’s influence on its user base and potential growth.
In October, Rumble shares rose 13%, contributing to a 36% year-to-date gain. Over the last year, shares have traded within a narrower range of $3.33 to $9.20. Analyst sentiment on Rumble is more muted, with both analysts surveyed by LSEG giving it a “Hold” rating and an $8 price target, implying a 34% upside from recent levels. Like the other stocks on this list, Rumble is trading with high volatility, driven by sentiment and speculation rather than earnings or revenue growth.
