Shares of Trump Media, the company that owns former President Donald Trump’s preferred social messaging platform Truth Social, hit their lowest price since going public on the Nasdaq nearly five months ago. The stock, trading under the DJT ticker, dropped to below $22.40 per share, representing a nearly 3% decline on the day. This decline follows a previous low in mid-April after the company’s initial public trading debut, signaling ongoing volatility for the stock. Trump, who is a major stakeholder in Trump Media and a prominent figure on Truth Social, has been at the center of recent developments that may be affecting the stock price.
Trump’s stock price surged in mid-July after he survived an assassination attempt and was formally nominated at the Republican National Convention. This momentum took a hit when Joe Biden dropped out of the election race and endorsed Kamala Harris as his replacement, with Harris now favored over Trump in betting markets. Trump Media has acknowledged its ties to Trump’s popularity and reputation, with some supporters viewing the company’s stock as a way to show support for the former president or bet on his chances of winning a second term. Despite reporting a loss of over $16 million in the fiscal quarter ending June 30, the company’s market capitalization remains high.
A significant portion of Trump Media’s losses are attributed to ongoing legal expenses related to its merger with Digital World Acquisition Corp., which was delayed for more than two years. By the end of August, the company’s market capitalization stood at nearly $4.5 billion despite posting only $837,000 in revenue during the same period. Trump is subject to a licensing agreement that limits his ability to make political posts on Truth Social first, but he is free to post such content on other platforms. Recently, he has utilized this freedom by posting on X and TikTok, two social media giants with much larger audiences than Truth Social.
On August 12, Trump was interviewed by Elon Musk on a livestream hosted on X, formerly known as Twitter. Trump has since continued to post on X, maintaining a presence beyond his platform Truth Social. These developments highlight the challenging landscape for Trump Media and its stock price as it navigates legal challenges, financial losses, and its reliance on Trump’s popularity. The company’s future success will likely be closely tied to Trump’s political trajectory and the ongoing evolution of the social media landscape.
