Trump Media & Technology Group Corp (NASDAQ:DJT) stock saw a 9% decline in premarket trading Tuesday after closing up 31% a day earlier amid a broader rally in the so-called Trump trade across markets.
The Monday surge came after an assassination attempt on the Republican candidate boosted expectations of his victory in the November election. Stocks in the crypto and gun sectors, as well as other companies that might benefit from a Donald Trump presidency, also saw gains.
Trump's survival after being shot in the ear strengthened his lead in betting odds over President Joe Biden. These odds further increased later on Monday after Trump selected U.S. Senator J.D. Vance as his running mate and the Republican Party officially nominated him to run again at their national convention in Milwaukee.
Trump Media, the parent company of the social media platform Truth Social, has seen its shares surge 132% in 2024 as retail traders bet on Trump winning a second term.
However, Citi analysts suggest that while Trump currently has the upper hand in the election, the boost in odds following the assassination attempt might diminish in the coming months.
"The assassination attempt on former President Trump will likely lead to a short-term boost in the polls, that may well at least partially fade by November," they wrote.
"Some historical episodes suggest a minor initial boost in the polls that may then partially reverse."
Trump made a return to the public eye at the Republican National Convention on Monday evening, where he received a warm welcome from thousands of supporters just two days after the attempt on his life.
Meanwhile, the Wall Street Journal reported on Monday that Tesla (NASDAQ:TSLA) CEO Elon Musk intends to commit around $45 million per month to a new super political-action committee (PAC) supporting Trump’s presidential campaign.
The group, named America PAC, includes notable backers such as Palantir Technologies (NYSE:PLTR) co-founder Joe Lonsdale, the Winklevoss twins, former U.S. ambassador to Canada Kelly Craft, and her husband, Joe Craft, the CEO of Alliance Resource (NASDAQ:ARLP) Partners.