CNN
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Shares of former President Donald Trump's social media company rose on the final day before the US presidential election.

Trump Media & Technology Group (DJT), Truth Social's parent company, rose 12% on Monday. There was no apparent trigger for the increase.

The stock has been extremely volatile since its March IPO, quadrupling in value in five weeks before plunging 41% in the last three trading sessions.

Traders have used Trump stock as a sort of barometer for the former president's perceived re-election chances. If Trump is re-elected, Truth Social could become an increasingly important communication tool, just as the former president used Twitter to spread political and other information during his time in office. If Vice President Kamala Harris wins, Truth Social's business prospects are likely non-existent.

The company's shares are not traded based on the company's fundamental business situation, which is minuscule compared to better-known competitors such as X, TikTok and Instagram. The company is in a liquidity crisis and said it had revenue of less than $1 million last quarter.

Although polls show the presidential race remains extremely close, online betting markets have given Trump an edge over Harris in recent weeks, and market analysts attribute the rise in Trump stock to the trend on prediction sites.

As Harris made a comeback in the online betting markets, Trump's media portfolio also began to implode. The steep decline shaved $2.4 billion from Trump's net worth between Wednesday and Friday, sharply reducing the $3.6 billion in gains Trump made the previous month.

Monday's gains added more than $400 million to Trump's net worth.

Trump's election odds on betting sites recovered somewhat on Monday. However, it's not clear if Monday's stock gains were due to anything specific, and the stock didn't quite follow the gradual moves of bids in the betting market. The company made no announcements and Trump did not appear to make any statements that would weigh on the stock.

Trump stock is a “meme stock,” a speculative trade that can fluctuate wildly for almost any reason.

The broader stock market also recovered somewhat on Monday, although it was significantly less volatile than Trump's media stocks.

The Dow fell 258 points, or 0.6%. The S&P 500 fell 0.3% and the Nasdaq also fell 0.3% after spending most of the day in positive territory.