Stocks of Trump Media & Technology Group (DJT), established by former U.S. President Donald Trump, have sharply declined to record lows as Trump returns to the competitor social media platform X and polls decline elections.
On Tuesday, Trump Media’s stock sunk to as low as $21. 33, clearly below 4 percent, and is now down 3. 7 percent at $21. 42. This is the eighth day in a row that this company has posted losses.
These declines are not only associated with polls showing Trump’s advantage shrubbing up but also with changes in election betting markets. Over the years, a huge number of small investors have regarded the stock as a reflection of Trump’s prospects in the next election.
“I think what we are seeing with Truth Social and DJT is more of a voting tool than an investment platform,” Lou Basenese, the president and chief market strategist at MDB Capital in New York, opined. “Whether it was up or down, the valuation has never matched the fundamentals of the company. ”
Earlier this month, Trump Media posted a Q3 loss of $16m. And it lost $15. 4 million in the year with a total revenue of $837 thousand. The market capitalization of the company has been reduced to about $4. 3 billion – rates which were above 8 billion before this year.
Its stock was once traded at $79 per share, the record high at that time. 38 after making its Nasdaq debut on March 26, following a merger with Digital World Acquisition Corp, Trump is expected to sell his 60% stake worth $114. 75 million shares—when the insider lockup period expires in the next month.
The stock’s prospects draw attention as the race boils down to the final lap, and everyone is keen on analyzing the effect. ”It has been apparent with his prospects of victory, and now, with the lockup period around the corner and a much more compressed race, the stock is at worst levels,” Basenese further said.
After almost a year of inactivity on the site, Trump recently started using X again after an interview with the owner, Elon Musk. It gets worse when his poll numbers dip against Democratic candidate Vice President Kamala Harris affecting investor sentiments.
After 78 days to the November 5 election, contracts betting on Harris’s victory are going for 56 cents, while those on Trump’s side are at 46 cents or down from 69 cents in mid-July.
