Trump Media Stock Falls After Surge
- Trump Media stock, trading as DJT, is at a new post-merger low.
- The stock started plummeting after a surge following an incident involving the former president.
- Investors are witnessing a downward trend in Trump Media stock value.
Shares of Trump Media, the company behind former President Donald Trump's social media platform Truth Social, fell to their lowest price since going public on the Nasdaq nearly five months ago. On Monday, the stock traded below $22.40 per share, marking a nearly 3% decline. This drop follows a previous low of $22.55 in mid-April, highlighting the stock's volatility and the challenges facing the company amid significant developments in Trump's political career. The decline in share price comes as Trump, the majority stakeholder of Trump Media, faces a series of legal and political challenges. Following a surge in stock price after an assassination attempt on Trump during a campaign rally, the momentum shifted as he was formally nominated at the Republican National Convention. However, recent betting markets now favor Vice President Kamala Harris over Trump for the upcoming election, reflecting a shift in public sentiment. Financially, Trump Media reported a loss of over $16 million for the fiscal quarter ending June 30, with revenues of only $837,000. The company attributed a significant portion of its losses to ongoing legal expenses related to its delayed merger with Digital World Acquisition Corp. This merger has faced numerous hurdles since its announcement over two years ago. Despite restrictions on political posts on Truth Social, Trump has been active on larger platforms like X and TikTok, where he has a broader audience. His recent interview with Tesla CEO Elon Musk on X further underscores his engagement with mainstream social media, potentially impacting the user base and visibility of Truth Social.