As the Election Day approaches, Trump Media & Technology Group has been experiencing a notable surge.

The stock price climbed on Monday, following a surprise visit from Tesla CEO Elon Musk during Donald Trump’s rally in Butler, Pennsylvania, after a close call with an assassination attempt in July.

On Tuesday, shares continued to rise as investors evaluated the recent media performances of Democratic nominee Kamala Harris, pushing shares up nearly 19% to $21.80.

With the presidential race being highly competitive, “the perception is that he is now winning,” stated Matthew Tuttle, CEO of Tuttle Capital Management, referring to Trump.

Investing in the social media company, whose leading shareholder may potentially become the next U.S. president, is an appealing option for some. The primary platform, Truth Social, serves as Trump’s main communication channel, making it essential during his potential return to office.

This explains the recent surge in Trump Media shares, which have gained ground after a previous downturn. However, Tuttle warns that the stock’s volatility serves as a reminder of the inherent risks associated with investing in Trump Media. The stock has fallen over 60% since going public.

“It’s a significant risk for long-term investors,” he noted.

The future of Trump Media, much like Trump himself, will ultimately depend on the election results, according to Tuttle.

In their regulatory documents, Trump Media has indicated how vital Trump is to its brand, cautioning that its market value “may decrease” if his popularity declines.

Additionally, Trump Media is not trading based on its business performance. The company is currently operating at a loss with minimal revenue. In August, it reported a net loss of $16.4 million, while generating just under $837,000 in revenue—a 30% drop from the previous year.

The organization faces additional challenges, including ongoing legal issues and reported management instability. Recently, it was revealed that Chief Operating Officer Andrew Northwall resigned in September, and a court ruling mandated the release of nearly 800,000 shares to an early investor.

“If he wins, they might manage to do something with this company,” Tuttle noted regarding Trump. “If he loses, it’s hard to see how it survives.”

Trump Media shares have also faced pressure following President Joe Biden’s withdrawal from the presidential race.

Last month, the stock hit its lowest point since becoming publicly traded after the six-month period during which insiders, including Trump, were restricted from selling shares ended.

Trump has indicated that he does not plan to sell his 60% stake in Trump Media, which is currently worth about $1.6 billion. At its peak, this stake was valued at almost three times that amount.