With the presidential election just a week away, Trump Media & Technology Group (DWAC) The stock was in a hot phase.

Trump Media, the company that owns former President Donald Trump’s right-wing social media platform Truth Social, has managed to recoup almost all of the stock value losses suffered since its inception went public on the Nasdaq End of March. This recent rally has made it a $10 billion business – even with less than $1 million in sales in the last quarter.

“I think it’s pretty clear, it’s preelection euphoria,” said John Rekenthaler, vice president of research at Morningstar (MORNING-0.05%). “It is simply impossible to imagine how the company could justify the share price.”

The former president and Republican presidential candidate is the majority shareholder of Trump Media and says he holds around 57% of the company’s shares has no plans release. Much of the trading in DJT stock is the result of people’s fanaticism toward the former president, making it what Rekenthaler calls an “affinity stock.”

“This is the most emotional stock on the stock market,” he said.

Trump Media itself has stated in regulatory filings that its “success depends in part on the popularity of its brand and the reputation and popularity” of Trump and that “adverse reactions to advertising may occur in connection with (Trump’s) or loss of its services.” “could have a negative impact on TMTG’s sales and operating results.”

Some polls show Trump with a slight edge When it comes to Democratic presidential candidate and Vice President Kamala Harris, this affinity has increased in recent weeks.

Shares of Trump Media rose nearly 22% on Monday to close at $47.36 following Trump’s campaign rally at Madison Square Garden in New York on Sunday. The event featured a number of speakers who did the following derogatory comments across multiple groups, including offensive comments directed at Harris.

Trading in the company’s shares was temporarily halted three times after the market opened on Tuesday due to volatility, with about 16 million DJT shares changing hands within the first 10 minutes of trading. Shares continued to rise during morning trading, rising above $50 per share.

Over the past 30 days, shares of Trump Media have risen nearly 220%, a rally fueled by election excitement and renewed enthusiasm for the Trump campaign with help from Elon Musk vocal support.

The Tesla (TSLA-1.23%) and the SpaceX CEO has made himself a close ally of Trump in recent months, speaking alongside him in Butler, Pennsylvania, and a series of pro-Trump talks elsewhere in the swing state – and in New York on Sunday. gave speeches.

Musk, the world’s richest man with a net worth of more than $270 billion, has done the same donated tens of millions of dollars to his pro-Trump “America PAC,” which organizes canvassing in battleground states. That included a pledge to donate $1 million to people registered to vote and sign a petition in support of “Free Speech and the Right to Bear Arms.” Philadelphia District Attorney sued Musk and his super PAC at the raffle on Monday.

While Rekenthaler believes in the stock would lose all value If Trump loses a second straight election on November 5, a victory could push the stock to new heights.

“I believe this stock will go to zero if he loses,” Rekenthaler said, “and I believe this stock could do anything if he wins.”