Trump Media Stock Hits Record Low Amid Political Turbulence and Financial Struggles
Shares of Trump Media & Technology Group, the social media company behind Truth Social, hit a new post-merger low, closing at $22.24 on Monday. This marks the lowest price since the company’s public trading debut on the Nasdaq nearly five months ago following a high-profile merger.
The stock, trading under the DJT ticker, has been on a downward spiral, losing more than 3.5% on Monday alone. This decline comes after the stock initially soared during its public debut but has since faced significant volatility.
The recent slump in Trump Media’s stock coincides with a series of dramatic developments for Donald Trump, who is both the majority stakeholder of the company and a central figure on Truth Social. The platform has positioned itself as a go-to social messaging service for Trump supporters and conservatives.
The stock’s performance has been closely tied to Trump’s political fortunes. The share price surged on July 15, following an assassination attempt on Trump at a campaign rally in Pennsylvania. However, the momentum waned after a surprising twist in the political landscape—President Joe Biden withdrew from the 2024 presidential race on July 21, endorsing Vice President Kamala Harris as the Democratic candidate. This unexpected shift has reshaped the betting markets, now favoring Harris over Trump for the upcoming election.
Adding to the financial woes, Trump Media reported a staggering loss of over $16 million for the fiscal quarter ending June 30, while generating just $837,000 in revenue during the same period. The company attributed a significant portion of its losses to ongoing legal expenses related to its delayed merger with Digital World Acquisition Corp.
Despite these challenges, Trump Media maintains a market capitalization of nearly $4.5 billion, buoyed by its stock price. However, the company’s financial performance has raised concerns among investors, especially given Trump’s recent social media activity on platforms like X (formerly Twitter) and TikTok, which dwarf Truth Social in terms of user base.
As Trump continues to navigate both political and financial battles, the future of Trump Media and its stock remains uncertain, with investors closely watching the former president’s next moves.
