Following Trump’s victory, ‘DJT’ shares resume rally as Phunware slides

By James Rogers

In a post on Truth Media, Donald Trump said he has no plans to sell his shares in the social media platform

Trump Media & Technology Corp. shares. and Phunware Inc. went in different directions two days after newly elected President Donald Trump emerged victorious in the US elections.

Trump Media (DJT), which operates the social media platform Truth Social, initially fell in premarket trading before recovering. The stock ended Friday’s session up 15.2% after Thursday’s session fell 23%.

Trump himself is the company’s majority shareholder, owning 114.75 million shares, or approximately 57% of Trump Media’s outstanding shares. In a post on Truth Social on Friday morning, Trump said he has no plans to sell his shares.

Related: Several popular ‘Trump trades’ take a breather

“There are false, untrue and probably illegal rumors and/or statements from perhaps market manipulators or short sellers that I am interested in selling shares of Truth,” he wrote. “Those rumors or statements are false. I have no intention of selling!”

Shares of Trump-linked Phunware (PHUN), which reported third-quarter results after market close on Thursday, ended Friday’s session down 12.8%. Shares of the mobile advertising company ended Thursday’s session down 13.6%.

Both stocks have risen in recent weeks, with Trump Media seen as a Wall Street proxy for Trump’s election chances. Phunware also has ties to Trump after developing and launching a mobile app for his 2020 re-election campaign. Earlier this week, the Austin, Texas-based company announced a deal to acquire a controlling stake in MyCanvass – a subsidiary of Campaign Nucleus, a software-as-a-service platform founded by Brad Parscale, the digital director of Trump’s 2016 campaign and the manager of his 2020 campaign.

Related: DJT stock rises as former President Trump wins election, then retreats

Phunware and Campaign Nucleus plan to use MyCanvass as the foundation for a partnership focused on developing AI-powered prospecting. Campaign Nucleus provided services for Trump’s 2024 campaign.

On Wednesday, after Trump’s election victory was confirmed, shares of Trump Media ended the day’s trading session up 5.9%, while shares of Phunware rose 16.6%.

However, in a note published Thursday, JP Morgan highlighted net sales in the media and entertainment sector, highlighting Trump Media and Alphabet Inc. in particular. (GOOG) (GOOGL) quoted. “Looking at the flows of individual major company stocks, after a month of consistent net buying, retail has become a major net seller over the past week,” JP Morgan analyst Emma Wu wrote.

Related: Phunware narrows quarterly loss due to revenue decline and stock prices continue to fall

Shares of Trump Media are up 82.3% in 2024, while Phunware is up 36.6%, with both outpacing the S&P 500’s SPX gain of 25.7%.

-James Rogers

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  24-08-11 1644ET
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