Ahead of election night, former President Donald Trump’s shares were halted Tuesday afternoon amid a sudden and steep sell-off.

Trump Media & Technology Group Corp. shares. were at $34.35 per share on Tuesday afternoon, after falling 15 percent in about 15 minutes. Trump Media & Technology, which operates Trump’s Truth Social media platform, rose significantly earlier in the day as voters across the country began casting their ballots.

But the volatility the stock is experiencing caused shares to rise 14 percent to $39.12 before quickly falling back to $34.35. While the stock could reflect Trump’s chances of winning the election, it could also be a way for investors to get into a stock at a volatile time when stocks suddenly fall before climbing back up.

“The initial surge was speculative, driven by hopes of a Trump victory,” said Kevin Thompson, a financial expert and founder and CEO of 9i Capital Group. Newsweek. “Many traders are taking advantage of MAGA proponent sentiment by buying early and selling near the end. Options data shows high implied volatility, suggesting shares could fall to around $20 if Trump loses.”

In recent months, Trump Media has reported less-than-stellar financial results. Second quarter revenue was less than $1 million, despite a $7 billion market cap. Truth Social’s parent company reported a third-quarter loss of $19.2 million. Revenue fell 5.6% to just $1.01 million compared to the same period last year.

“Trump Media’s declining revenues and lack of profitability make it a risky investment, with its current market capitalization unjustifiable based on user metrics,” SeekingAlpha analyst Bohdan Kucheriavyi previously wrote.

“Despite its poor performance, Trump Media shares have soared on the back of political events, highlighting its sensitivity to election results rather than business fundamentals. The stock’s fate hinges on the results of the 2024 presidential election, with potential appreciation if Trump wins, but bleak prospects if Kamala Harris prevails.”

Ahead of the election, polls showed a close race between Trump and Vice President Kamala Harris.

Analysts have warned investors against taking a stake in what many consider a risky stock.

“Trump Media shares are up 200 percent in the past month, reflecting election polls that show Donald Trump narrowing his lead over Kamala Harris,” wrote Uttam Dey, another SeeingAlpha analyst. “The stock is treated like a meme stock, fluctuating with election sentiment rather than real financials, making it a risky bet for investors.”

It’s unlikely that America will know who wins the election on Tuesday night, but Trump Media & Technology will likely continue to fluctuate based on public perception of who wins.

“This trading activity reflects less election predictions and more about event-driven volatility,” Thompson said. “Supporters may bid higher on the stock in hopes of a Trump victory, but overall this is the standard volatility around a major event. We could see a market rally if Trump wins, or a small sell-off if Harris wins.”

On Monday, DJT shares rose 12 percent after a period of declines late last week. The stock fell 22 percent last Wednesday, 12 percent on Thursday and another 14 percent on Friday.

Trump currently owns 114.75 million shares of Trump Media as the company’s largest shareholder. That puts the value of its shares at about $4.5 billion.

“Looking at the current performance of stocks tied to the Trump campaign, it’s fair to say that investors are optimistic about his chances of winning the election,” Alex Beene, a financial literacy instructor at the University of Tennessee, told me. in Martin. Newsweek.

“…This same trend occurred in reverse in 2016, when many investors expected a Clinton presidential victory and were blindsided the next day. It is important not to view the stock market as sports betting. Yes, a new administration can bring many positive bringing results to different market sectors, but the reality is that we have had both Republican and Democratic presidents over the last eight years, and the market as a whole has largely risen across all sectors.”

Update: 11/5/24, 7:10 PM ET: This story has been updated with more information.

Update 11/24/24, 3:58 PM ET: This story has been updated with comments from Kevin Thompson and Alex Beene.