Trump Media Shares Fall After DJT's Campaign Rally Incident

Shares of Trump Media & Technology Group (DJT), primarily owned by former President Donald Trump, have plummeted to record lows, closing at $21.42 on Tuesday, a drop of 3.7 percent. This decline marks the eighth consecutive day of losses, driven by Trump's recent return to the rival social media platform X and a decrease in his lead in presidential polls. Analysts suggest that the stock has become a barometer for Trump's electoral prospects, with retail traders viewing it as a proxy for his chances of winning a second term. The company's financial performance has also raised concerns, as it reported a quarterly loss of $16.4 million and revenue of only $837,000 earlier this month. The market value of Trump Media has fallen to approximately $4.3 billion, down from over $8 billion earlier this year. The stock had previously peaked at $79.38 during its Nasdaq debut in March, following a merger with Digital World Acquisition Corp. The ongoing decline is compounded by the impending expiration of an insider lockup period, allowing Trump to cash out a significant portion of his shares. As the November 5 election approaches, Trump faces a tightening race against Democratic nominee Vice President Kamala Harris. Betting markets reflect this shift, with contracts for Harris's victory trading at 56 cents, while Trump's contracts have dropped to 46 cents. The volatility in Trump Media's stock price mirrors the fluctuating political landscape, as supporters view it as both an investment and a means of backing the former president. Despite the challenges, Trump remains active on social media, recently posting on X and TikTok, platforms with far larger audiences than Truth Social. His licensing agreement mandates non-political posts on Truth Social, but he retains the freedom to share political content elsewhere, further complicating the dynamics of his media presence and electoral strategy.