Trump’s Failed Media Bid Continues Torturous Crawl to the Bottom
Donald Trump’s media company stock has been steadily slipping in value following his conviction on 34 felony charges, and on Thursday, it dropped back down near its all-time low.
Since the verdict in Trump’s hush-money case was decided last month, shares of Trump Media & Technology Group, the company behind Truth Social, have dropped in value by nearly 40 percent, according to CNBC.
The stock market closed Thursday with DJT (Trump Media’s stock symbol) another 15 percent down, valued at just $26.75—dipping dangerously near its all-time low of $22.84, which it hit in April. At the time, Trump stock was doing so badly that Trump Media CEO Devin Nunes wrote a letter to Congress asking them to investigate the anonymous trading of DJT stock. He was previously torched for reaching out to NASDAQ to complain about “naked short-selling.”
It’s been another particularly tumultuous trading week for DJT, beginning with Trump’s stock plummeting nearly 10 percent on Tuesday. After closing that day, the SEC declared that Trump Media’s registration statement had gone into effect, which caused the value to dip another 17 percent in post-market trading.
The registration statement allowed some investors to exercise warrants, which permit them to swap and sell shares. Unfortunately for standard shareholders, who are not granted the benefit of warrants, this can dilute the value of their shares.
Less than a month ago, everything was different for DJT. Shares of Trump Media stock cost a whopping $49, and Trump’s 114,750,000 shares were worth more than $5.6 billion.
At today’s rate, the former president’s shares would be worth closer to $3.2 billion, and it’s hard to imagine what it will be worth by September, when Trump will actually be allowed to sell.
DJT continues to prove itself to be a uniquely volatile stock, the value of which is tied to the fate of one convicted felon, and his ability to appeal to voters.