Trump Media dives, wipes out early rally in second heaviest trading session

By Noel Randewich

(Reuters) -Shares of former U.S. President Donald Trump's media company tumbled in volatile trading on Tuesday in the second heaviest trading session since the Truth Social platform's Wall Street debut in March.

Trump Media & Technology Group's stock sank nearly 10% to $27.04, reversing gains of as much as 13% earlier in the day.

Traders exchanged about $3 billion worth of Trump Media shares on Tuesday, according to LSEG data.

Since its listing, Trump Media has been popular with traders viewing it as a speculative bet that the former president will win the Nov. 5 presidential election.

Turnover in Trump Media hit $3.4 billion on July 15 after a would-be assassin shot Republican candidate Trump in the ear at a campaign rally in Pennsylvania.

Trump's odds of beating Vice President Kamala Harris, the Democratic candidate, in the race for the White House have recently edged higher on betting websites, although the race remains tight.

Oddschecker.com had Trump at the equivalent of about a 56% chance of winning and Harris at about 44%, while a recent Wall Street Journal poll showed the two candidates tied across battleground states that could decide the election.

On the PredictIt platform, contracts for a Trump victory traded at 54 cents, with a potential $1 payout. Harris contracts were at 50 cents.

Trump's 57% stake in Trump Media is now worth $3.1 billion.

Trump Media soared 18% on Monday after reports that Harris has agreed to be interviewed on Fox News on Wednesday.

The stock has rebounded about 120% in recent weeks after closing at a record low on Sept. 24.

Trump Media saw its value briefly balloon to nearly $10 billion following its March stock market debut through a tie-up with a blank-check company.

Trump Media's revenue in the June quarter was $837,000 and the company is burning cash. Strategists say its current $5.4 billion stock market value is detached from its day-to-day business.

(Reporting by Noel Randewich, editing by Nick Zieminski and David Gregorio)