Shares of Trump Media & Technology, the parent company of Truth Social, experienced a notable decline following the recent presidential debate featuring Donald Trump and Vice President Kamala Harris. This downturn signals investor sentiment reflecting a belief that Trump did not perform well during the televised event.
Market analysts indicated that the general consensus, particularly after the ABC-hosted debate, favored Harris, which aligns with the significant drop in Trump’s stock, DJT, early on Wednesday. The stock plummeted 10.5%, reaching a low of 15.30 during trading, marking a new low since its SPAC debut.
Prior to the debate, DJT shares had seen a surge, climbing nearly 9% and closing at 18.63 on Tuesday. This fluctuation underlines the close relationship between Trump’s public persona and the performance of DJT on the stock market, which investors often interpret as a barometer for Trump’s political viability.
The stock’s relationship with Trump’s personal brand became particularly significant following the launch of Truth Social, which arose after Twitter banned Trump’s account following the events of January 6, 2021. Trump holds a 65% stake in Trump Media, which remains a substantial financial asset, albeit one whose value has recently come into question given DJT’s plummeting stock price.
In a troubling report for investors, the company disclosed sub-$1 million in revenue for August, raising red flags. The volatility was further exacerbated by Trump’s decision to rejoin Twitter, now known as X, which he had previously vowed to abandon in favor of Truth Social. Since this unexpected return in mid-August, DJT shares have suffered a 25% decline.
Upon its market debut, DJT shot up over 16% on March 26, achieving a peak intraday high of 79.38, following the successful merger of Digital World Acquisition Corp with Trump Media. This arrangement came after extensive negotiations, leading to serious market interest initially reflected in DWAC stock’s impressive 35% rally in anticipation of the merger.
Since transitioning to DJT, shares have deteriorated by 68%, even in the context of a 6.5% advancement in 2024. Notably, DJT reached a temporary high of 46.27 on July 15 following Trump’s assassination attempt, coinciding with an uptick in his overall polling lead amidst President Biden’s subsequent withdrawal from the race.
Investors are increasingly cautious as DJT has now fallen around 60% since its peak. As observers reflect on the ramifications of presidential performances and the implications for stock movement, the current stock trajectory raises serious questions about both Trump’s political brand and the financial prospects for his media enterprise.
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