Trump Media & Technology Group stock (DJT) erased the double-digit surge it enjoyed over the past two trading sessions, with shares falling nearly 20% on Wednesday.
The volatile swings come after the stock was briefly halted several times on Tuesday amid heavy trading volume. It still managed to eke out gains of around 8% to trade at its highest level since May, despite the Republican nominee’s highly criticized rally at Manhattan’s Madison Square Garden over the weekend.
And despite Wednesday’s drop in shares, which shaved around $2 billion from its market cap, the stock is still up roughly 200% from its September lows.
The oscillating of shares between highs and lows will likely continue as the election nears. One current investor warned that if Trump loses the election next week, shares of DJT could plunge to $0.
“It’s a binary bet on the election,” Matthew Tuttle, CEO of investment fund Tuttle Capital Management, told Yahoo Finance’s Catalysts show on Monday.
But one analyst surmised that the outsized moves could signal more than just pure-play election bets.
“The stock has acted like a leveraged bet on its namesake’s electoral chances for some time, but even though the election odds have recently stabilized around the current 62% level, the stock continues to rally on high volume nonetheless,” Interactive Brokers’ chief strategist Steve Sosnick said in a note to clients on Tuesday. “It seems to have taken on a meme-stock-ish life of its own.”
Trump maintains a roughly 60% interest in DJT. At current levels of around $42 a share, Trump Media boasts a market cap of about $8.5 billion, giving the former president a stake worth around $5.1 billion.