Shares of Trump Media & Technology Group (DJT), majority-owned by former US President Donald Trump, have plummeted to record lows amid Trump’s return to rival platform X and slipping poll numbers for the upcoming presidential election. The stock hit $21.33 before finishing at $21.42, marking an eighth consecutive day of losses.
Some retail traders view the stock as a bet on Trump winning a second term, causing fluctuations based on his perceived chances. The company, which owns the Truth Social app, reported losses of $16.4m and revenue of $837,000, with a market value of $4.3bn compared to over $8bn earlier this year.
The stock soared to $79.38 during its Nasdaq debut but has since dwindled as Trump’s lead in polls against Vice President Kamala Harris narrows. Trump’s ability to cash out his stake in the company – nearly 60 percent or 114.75 million shares – when the insider lockup period ends next month may impact the stock further.
Lou Basenese of MDB Capital views the stock as a gauge of Trump’s electoral chances rather than a sound investment, citing an inflated valuation relative to the company’s fundamentals.
As Trump engages with X and his lead in polls diminishes, the stock’s value continues to decline, now trading at record lows. With the election only 78 days away, contracts for a Harris victory are trading at 56 cents on the PredictIt platform, while contracts for a Trump victory have dropped to 46 cents from a high of 69 cents in mid-July.
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