Trump Media has been struggling since his May 30 conviction in New York on 34 felony counts of falsifying business records.
The downward spiral of Trump Media gained momentum on Thursday, witnessing a rapid sell-off that saw shares of former President Donald Trump’s company plummeting by up to 15% shortly after trading commenced.
Known for its flagship conservative social media platform, Truth Social, Trump Media trades under the ticker symbol DJT on the Nasdaq. At the opening bell, the stock hovered around $27 per share, marking a stark decline of more than 40% from early June, when shares were valued at just over $49.
This dramatic slide translates into substantial on-paper losses for Trump, who holds the majority ownership of Trump Media. At the beginning of June, Trump’s stake of 114,750,000 shares was valued at over $5.6 billion. However, based on Thursday’s trading, the same shares would now be valued around $3.2 billion.
Trump Media’s downturn began in earnest on May 30, following Trump’s conviction by a New York jury on 34 felony counts related to falsifying business records. Since then, the company’s stock has been caught in a persistent slump.
The trajectory worsened notably on Tuesday, coinciding with a pivotal deadline set by the Securities and Exchange Commission (SEC) for the approval of Trump Media’s registration statement. During Tuesday’s trading session, the stock plummeted nearly 10%, trading on significantly higher volume than usual. After market close, Trump Media disclosed that the SEC had officially declared its registration statement effective. In response, the stock nosedived by more than 17% during after-hours trading following the announcement.
The SEC’s approval of the registration statement enables early investors in Trump Media to exercise their warrants and permits existing shareholders to publicly resell securities covered by the registration statement. This development added to the volatility and uncertainty surrounding Trump Media’s stock performance.
Overall, Trump Media’s recent tumultuous market activity underscores the challenges facing the company amidst legal issues and regulatory hurdles, culminating in a sharp decline in shareholder value and investor confidence.
