Trump"s Truth Social Stock Drops After Assassination Attempt

Shares of Trump Media & Technology Group, the parent company of Truth Social, faced volatility following an assassination attempt on Donald Trump. Initially, the stock rose by 5% in premarket trading on Monday after the incident occurred on Sunday. However, by late morning, the share price had dropped by 4%, indicating a more subdued market reaction compared to a previous assassination attempt in July, which had led to a significant spike in stock value. Experts have likened Trump Media's trading behavior to that of a meme stock, driven more by public sentiment than by financial fundamentals. The former president's recent comments about not selling his shares contributed to the stock's fluctuations. Trump stated, "No, I’m not selling. No, I love it," during a press conference, which initially caused the stock to surge by 30%. This rapid increase led to two trading halts by Nasdaq, a common regulatory practice to manage extreme price movements. Ultimately, the stock closed the day up by 12%, marking its best performance in three weeks. Despite these fluctuations, investors who purchased shares when the company went public in March are facing significant losses, with the stock down approximately 74% from its peak. Trump's stake in the company, which was valued at $6.2 billion in May, has now decreased to about $2 billion. The impending expiration of lock-up restrictions for insiders, including Trump, has created uncertainty in the market. Overall, the combination of external events and internal company dynamics continues to create a turbulent environment for Trump Media, reflecting the challenges faced by the conservative social media platform in maintaining investor confidence.