CNBC host Jim Cramer said battleground states better “look out!” if former President Donald Trump is able to finance his campaign by selling his Truth Social stock.
The newly-merged Trump Media and Technology (DJT) company began trading on the NASDAQ stock exchange last week, and immediately shot up in initial trading. But Trump’s contract prevents him from selling until six months after the stock began trading.
On Monday morning’s edition of CNBC’s Squawk on the Street, Cramer and his co-hosts discussed the stock’s strong performance, despite a steep dive after some negative financial disclosures.
Cramer referred to the stock as a “back door” for campaign contributions, expecting that the board of Trump Media will approve some shares for Trump to sell, and anticipated that with billions in value, Trump could win the election by leveraging the company:
DAVID FABER: Jim, I don’t know what you say about the fundamentals here. I mean, it’s going to be interesting to watch as the as the election year moves along. And this is a way, you know, this has created enormous paper wealth for Donald Trump.
JIM CRAMER: Well, I think that what people are using it as, some as a keepsake, and I think some of them are using it to fund, another way to fund a campaign that — you buy some of that, maybe you make it so that there’s more money for the campaign. Just an easier way than doing it, donating.
DAVID FABER: If they, if he can begin to sell shares at some point. (Right.) Finance his campaign. Yes. Without a doubt. And that is.
JIM CRAMER: It’s a backdoor — backdoor campaign finance.
DAVID FABER: There’s not much of a float at this point. Though that may change over. Time will change over time.
JIM CRAMER: Well, David, the board is not as independent, you know.
DAVID FABER: Controlled by TMT.
JIM CRAMER: Yeah, right. Carol Everson might be a good person to ask about that. Your next guest at 10:00.
DAVID FABER: Why?
JIM CRAMER: She understands advertising. She understands the media. She understands whether this is actually a stillborn. Or maybe it’s the beginning of a new era in, streaming and internet.
DAVID FABER: Yeah, I don’t know. I don’t have an answer for that.
I don’t know. Don’t have the revenues. I can give you the $4.13 million in revenues.
CARL QUINTANILLA: And less than $1 million in Q4. Less than less than $1 million. Doesn’t really have to go. Not accelerating, not accelerating at this point.
JIM CRAMER: Well, the fact is, is that if he can get it, President Trump can get his hands on that stock and sell it? Holy cow! Those nine battleground states? Look out! Billions!
DAVID FABER: Well also. But I believe if former President Trump were to win the election again and use this as the way he communicates, which he very well might, that it would conceivably enhance its overall value.
CARL QUINTANILLA: We’re back to the Emoluments Clause. Is that what the next four years would be about?
By the end of the day, DJT appeared headed for a close at around 20 percent lower than it opened.
Watch the video above via CNBC’s Squawk on the Street.
