The stocks of Trump Media (TMTG), owned by Donald Trump, have taken a nosedive. Analysts say this is the most significant drop since the stock entered the market.
The share value of Trump Media, which runs the Truth social network created by the Republican, plummeted to new lows.
The shares dropped by 3.56% in just one day. As a result, on the NASDAQ, one TMTG share was trading at $22.24. The last time it traded at this level was on January 12, 2024, when it was ticked as DWAC (Digital World Acquisition Corp.). This symbol refers to the SPAC company through which Trump Media went public in March 2024. This happened without an initial public offering (IPO).
In the past five months, Trump Media’s shares have seen a series of ups and downs. They spiked sharply up to $79.38 per share in mid-July after an assassination attempt on the politician. However, TMTG's shares have steadily declined since then.
The most significant blow to the stock’s value came from Joe Biden’s exit from the presidential race. Kamala Harris, who took his place, quickly reached the top in public opinion polls. Now, some analysts see her as the frontrunner in the presidential race.
In this situation, many TMTG shareholders viewed buying these shares as a bet on Trump’s return to the White House. However, investors are now selling them off, as they do not believe this will happen.
Negative market sentiment has intensified amid the company’s weak financial results. According to the August report, the quarterly loss exceeded $16 million, with revenue staying at $837,000. Trump Media’s management attributed this situation to legal costs associated with the merger with DWAC.