Shares of Trump Media & Technology Group, predominantly owned by former President Donald Trump, dropped to record lows on Tuesday. This decline follows Trump’s recent return to the rival social media platform X. The stock fell to $21.33, marking a loss of over 4%, and closed down 3.7% at $21.42, extending its losing streak to eight sessions.
Trump’s weakening poll numbers and his standing in election betting markets have contributed to the stock’s decline, which some retail traders viewed as a reflection of his re-election chances. Lou Basenese, president and chief strategist at MDB Capital, noted that Truth Social and Trump have been viewed more as a political barometer than a solid investment, given their valuation issues.
The stock had previously soared to $79.38 following a merger with Digital World Acquisition Corp. but has faced significant losses. Earlier this month, Trump Media reported a quarterly loss of $16.4 million and revenue of just $837,000. The company’s market value now stands at about $4.3 billion, down from over $8 billion earlier this year.
With Trump expected to be eligible to start cashing out his nearly 60% stake next month, Basenese remarked that the stock’s performance has mirrored Trump’s political odds, and its decline is likely exacerbated by the upcoming expiration of the insider lockup period.
Trump’s return to the X platform last week, following nearly a year of absence, coincided with an interview with its owner, Elon Musk. However, Trump’s previously strong poll numbers have slipped in recent weeks, especially against Vice President Kamala Harris, the Democratic candidate. With 78 days remaining until the Nov. 5 election, Harris contracts are trading at 56 cents, while Trump contracts have dropped to 46 cents from a high of 69 cents in mid-July.
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