A Democratic Congressman is facing scrutiny for purchasing shares in Donald Trump’s media company shortly after the 2024 presidential election. Democrat Morgan McGarvey disclosed that he purchased between $1,000 and $15,000 in Trump Media & Technology Group (TMTG) stock on November 6, the day after Trump was projected to win the election. McGarvey quickly sold the shares just two days later, on November 8, at a loss, after the stock’s value fluctuated wildly.
TMTG, which operates the social media platform Truth Social, saw its stock price surge by 44% in premarket trading on November 6, driven by the market’s positive reaction to Trump’s victory. However, the excitement quickly dissipated, and the stock dropped nearly 23% the following day due to rumors suggesting that Trump was considering selling the platform. These rumors created uncertainty, prompting a sharp decline in the stock’s value.
In response, Trump publicly addressed the rumors, categorically denying any intention to sell Truth Social. He made it clear that the reports were false, reassuring investors that he had no plans to divest from the platform. This clarification helped stabilize the stock, but it has remained volatile since then.
Despite his involvement in TMTG’s stock, McGarvey has been an outspoken critic of Trump for years. He has repeatedly described Trump as unfit for office and has made disparaging remarks about the former president, even calling him a convicted felon. McGarvey’s decision to invest in TMTG, especially after such vocal criticism of Trump, raises questions about his motivations and the timing of the purchase.
McGarvey maintains that he was unaware of the trade, claiming it occurred without his knowledge. However, this episode highlights the often unpredictable overlap between politics and the stock market. With Trump still holding a significant stake in TMTG, the company’s financial performance will continue to be closely tied to his political influence, making it a situation worth monitoring in the coming months.