Shares of Trump Media & Technology Group, the parent company of Truth Social, experienced a significant drop following the recent presidential debate between former President Donald Trump and Vice President Kamala Harris. This decline suggests a shift in investor sentiment, indicating that many believe Trump did not perform well during the televised discussion. The stock (DJT) plummeted by 10.5% to 16.68 and continued to decline with a further 4.6% drop Thursday.
Investor reactions to the debate have shown a pattern where Trump’s stock often reflects public sentiment regarding his political performance. In anticipation of the debate, DJT shares had previously gained nearly 9%, concluding at 18.63 on the day of the discussion. However, since the debate, the stock has continued to slide, reaching a new low post-SPAC.
The close link between Trump’s public persona and the performance of DJT shares is clear; the stock often mirrors the former president’s political standing. Trump’s media ventures, such as Truth Social, arose after his controversial ban from Twitter following the events at the Capitol on January 6, 2021. His substantial 65% ownership stake in Trump Media translates to a significant personal wealth tied to the company’s stock performance.
As expected, the media landscape continues to evolve, with Trump’s messaging through social media impacting market evaluations. After launching Truth Social, Trump had previously vowed to refrain from returning to X (formerly Twitter) but has since re-engaged with that platform, which may affect the perception of his media business.
Since its initial trading under the DJT ticker on March 26, where it peaked at 79.38, the stock has suffered a dramatic downturn, experiencing about a 70% decrease from its highs amid an ongoing volatile market. On July 15, amidst heightened political stakes following a failed assassination attempt against Trump, the stock saw a temporary rise but began its steep decline afterward.
Market analysts have highlighted the unpredictable nature of stocks closely associated with political figures, making it crucial for investors to keep a close watch on sentiment indicators and how they may influence stock movements. As the election cycle picks up steam, developments in Trump’s media ventures and engagement with voters will likely continue to impact DJT’s stock performance.
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