Trump Media stock sinks 15% as pre-election losses deepen

You May Be Interested In:American Airlines just ditched Barclays for Citi


In This Story

What once appeared to be “pre-election euphoria” has turned into pre-election bleeding for the media company behind Republican presidential candidate Donald Trump’s right-wing social media platform Truth Social.

Shares of Trump Media & Technology Group plunged nearly 15% at market open Thursday. Trading was halted twice within the first hour of the day due to volatility.

Over the past two days, Trump Media has shed billions in market value following a weeks-long rally. Shares closed down 22% on Wednesday, ending the day at $40.03 — its worst day since debuting on the Nasdaq in late March.

The company had a market capitalization of $6.90 billion as of Thursday morning. Shares of the company are still up 116% this month, holding onto gains from the intense rally of the past several weeks.

Although it’s not immediately clear what’s prompting the sell-off, much of the trading of DJT stock has to do with its ties to the former president — making it what vice president of research at Morningstar (MORN-0.77%) John Rekenthaler calls an “affinity stock,” trading on sentiment rather than actual business performance.

In recent weeks, the stock has become something of a proxy for his election odds.

With the U.S. presidential election in less than a week, Trump Media stock has become a way for Trump fans to buy into the former president and express their support for him financially.

Trump, who has a 57% stake in the company, has said he has no plans to get rid of his shares, despite the end of a six-month share lock-up agreement last month. That bodes well for the company — and its stock.

Trump Media itself has said in regulatory filings that its “success depends in part on the popularity of its brand and the reputation and popularity” of Trump and that “adverse reactions to publicity relating to [Trump], or the loss of his services, could adversely affect TMTG’s revenues and results of operations.”

Rekenthaler has warned, however, that Trump Media stock will “go to zero” if the Republican candidate once again loses the White House this election cycle. If Trump were to win, on the other hand, Rekenthaler believes the stock “could do anything.”

share Paylaş facebook pinterest whatsapp x print

Similar Content

Army, Navy, and That Old-Timey Football
Army, Navy, and That Old-Timey Football
A Dark Reminder of What American Society Has Been and Could Be Again
A Dark Reminder of What American Society Has Been and Could Be Again
Pfizer sales were boosted by a COVID-19 wave during the third quarter
Pfizer sales were boosted by a COVID-19 wave during the third quarter
Trump’s Musk and Ramaswamy appointments spark conflict of interest fears – US politics live
Trump’s Musk and Ramaswamy appointments spark conflict of interest fears – US politics live
US Republican politician must resign after pleading guilty to sexual assault
US Republican politician must resign after pleading guilty to sexual assault
Tesla's stock surge is being driven by 'animal spirits,' according to UBS
Tesla’s stock surge is being driven by ‘animal spirits,’ according to UBS
Current Edge | © 2024 | News