Trump’s Media Firm Faces Record Low Stocks

NEW YORK (Reuters) — Shares of Trump Media & Technology Group, largely owned by former President Donald Trump, hit record lows on Tuesday after Trump’s recent return to the rival social media platform X.

The stock fell to a low of $21.33, down more than 4%, and ended the day at $21.42, reflecting a 3.7% decline. This marks the eighth straight day of losses for the company’s shares.

The decline in Trump’s poll standings and betting odds for the upcoming election has also negatively affected the stock. Some investors view the stock as a bet on Trump’s chances of winning a second term rather than a sound financial investment.

According to Lou Basenese, president and chief market strategist at MDB Capital in New York, “I’ve always seen Truth Social and DJT more as a political play than an investment opportunity. The stock’s valuation has not matched its fundamental performance.”

Previously, the stock reached a peak of $79.38 on March 26 following its merger with the blank-check firm Digital World Acquisition Corp and its debut on Nasdaq.

This month, Trump Media reported a quarterly loss of $16.4 million and earned just $837,000 in revenue. The company’s market value has dropped to about $4.3 billion, a significant decrease from over $8 billion earlier this year.

Trump is anticipated to be able to start selling his nearly 60% stake—about 114.75 million shares—once the insider lockup period concludes next month.

Basenese observed, “The stock has always been closely tied to Trump’s chances in the election. With the race tightening and his odds shrinking, the stock is hitting new lows. The approaching end of the insider lockup period is also a factor.”

Trump began posting on X for the first time in nearly a year last week, coinciding with an interview with X’s owner, Elon Musk.

Trump’s lead in polls against Democratic candidate Vice President Kamala Harris has narrowed significantly in recent weeks.

With 78 days remaining until the November 5 election, contracts predicting a Harris victory are priced at 56 cents with a potential $1 payout on the PredictIt betting platform. In contrast, Trump’s contracts have fallen to 46 cents, down from 69 cents in mid-July.