I know what you're thinking: "Is this really happening?" Well, according to the word on the street - maybe. Rumor has it that Elon Musk—the king of buying things he maybe shouldn’t—might be eyeing a new acquisition, and it’s Trump Media. Yes sir, Truth Social ($DJT) could actually be on our boy Musk’s shopping list, and naturally the internet is losing its collective mind over it. 

(Source: Giphy) 

For starters, you may recall that over the past few weeks, DJT shares have absolutely mooned faster than a friggin’ meme stonk after a retweet on WallStreetBets. And while shares have jumped over 230%, leaving most traders and analysts scratching their heads at the sudden carnage in bullish sentiment, it was the speculation that Musk would indeed “swoop” in that has led the charge. 

(Source: New York Post) 

However, as with any horned up stock rally, gravity eventually kicked in. DJT shares plummeted 13.5% on Friday, leaving traders wondering: What the hell just happened?

Well, ICYMI, Elon Musk has clearly been hobnobbing with Donald Trump lately. He’s been spotted at campaign events, and he’s apparently donated more than $100 million to Trump’s re-election bid. So naturally, this close quarters relationship has sparked whispers that Musk might be interested in bringing Trump Media under the X umbrella.

(Source: Giphy) 

But, but, but… again, going back to buying things Elon probably shouldn’t, falls on the fact that Truth Social isn’t exactly setting the world on fire with its user base or revenue. The platform lost $160 million in Q2 and has just a fraction of X’s daily users. But hey, who cares about fundamentals when you can ride the MAGA train to potential riches, amirite? Traders are betting that if Trump wins the White House, Musk’s potential acquisition could be a match made in capitalist heaven, baby. 

(Source: Giphy) 

This brings us to the main question: Why in da hell should Musk buy it? Good question. Musk famously shelled out $44 billion for Twitter in 2022, which was… let’s just say generous. However, what most don’t realize is that X (Twitter) barely breaks even with 200 million daily users, and Musk’s been trying everything short of selling kidneys to make it profitable. Meaning, why would he pony up another $10 billion for a social media platform that’s bleeding money and has far fewer users?

Simple: MAGA loyalty. Musk has been leaning into his right-wing fanbase lately, and owning Truth Social could solidify his status as the tech overlord of the MAGAverse. Plus, if Trump wins, Musk could potentially cash in on some sweet government contracts for SpaceX or Tesla. Which let’s be honest, whether you love him or hate him, would be a savvy business move in the making. 

(Source: Seeking Alpha) 

Plus, $10 billion is legit pocket change for Musk, who’s worth nearly $300 billion on a slow day. Sure, most of that’s tied up in Tesla stock, but if he’s willing to piss off Tesla investors by selling shares to buy DJT, you know he’s serious. Or maybe just bored.

In the end though, while this may sound exciting, especially leading up to tomorrow’s election - no one can actually confirm this is happening. Not Musk, not Trump, not even the guy serving Diet Cokes at Mar-a-Lago. It's all speculation swirling around Trump’s inner circle. The New York Post dropped the story, but even they admitted they couldn’t lock down a source with their name on the paperwork.

(Source: Giphy) 

So with that said, could Musk actually buy Truth Social? Sure. Will he? Who knows. But what we do know is that the rumor mill is churning, and DJT’s wild stock swings are proof that traders are betting on something big happening—whether or not it’s based in reality. 

For now though, all we know is that sh*t happens, and in the world of Elon and Trump, nothing is off the table. Meaning, place your bets accordingly friends - and as always, stay safe and stay frosty! Until next time…

PS: Our “Wild Friday” alert delivered a 116% move in just minutes… If you’re tired about hearing about these trades AFTER the fact (and how we’re averaging a 100%+ winner every single week) Click here for the details on how to become a Stocks.News Premium Member.

Stocks.News holds positions in Tesla as mentioned in the article.