Shares in the Donald Trump-controlled media company plunged on Wednesday as investors slumped over the former president’s chances of winning the U.S. presidential election after his Debate with Vice President Kamala Harris.
Trump Media and Technology Group has become a kind of financial barometer for Trump’s election prospects, as he owns about 60 percent of the shares and is closely tied to Truth Social, the company’s conservative-leaning social media platform.
Trump Media’s share price fell sharply Wednesday morning, falling $2.79, or 15%, to $15.84 – its lowest level since its IPO. Debut on the public market in March. The stock has fallen 76% since its closing high of $66.22 on March 27, a day after it was listed on the Nasdaq Composite Index.
In contrast, shares of Trump Media – which trades under the ticker symbol “DJT,” Trump’s initials – rose 8% on June 28, a day after his Debate with President Joe Bidenwhose inconsistent performance eventually led him to drop out of the race.
An even more dramatic example of how the company’s fate seems to be tied to Trump’s fate is Trump Media’s stock price. rose by more than 40% after he survived an assassination attempt on July 13. The polls at the time also gave him a lead in the presidential race.
On paper, DJT’s steep fall has cost Trump billions in personal wealth. His stake in Trump Media, once worth about $6 billion when the company’s stock was soaring, is now worth less than $2 billion.
Trump and other company insiders will be able to sell their shares when a lock-up period for Trump Media stock expires on September 19. Such restrictions are designed to prevent large investors from selling their shares shortly after a company goes public.
Trump Media reported in August that its second-quarter revenue fell 30% from the same period a year earlier, to $836,900. The company also said it lost $16.4 million in the quarter, a smaller loss than the $22.8 million loss in the same period a year earlier, according to a filing with regulators. The company attributed the drop in ad sales to a change in revenue sharing with one of its advertising partners.
