Friday afternoon saw a more than 10% decline in Trump Media stock values following a run of increases in the days leading up to the first presidential debate.
Just hours before President Joe Biden and Donald Trump squared off in Atlanta, shares of Trump Media & Technology Group closed at $36.73. At opening, the share price was up 8.3% to $39.78 as investors saw Biden falter through multiple replies and Trump continue to press the issue of immigration.
Nevertheless, that dropped to about $32 per share by Friday afternoon. The firm that powers Truth Social, sometimes known as a meme stock, has historically experienced market volatility.
Following the incident at the US Capitol on January 6, 2021, Trump was expelled from several major platforms and launched his own social media business in 2021.
Through a merger with shell business Digital World Acquisition Corp., a special purpose acquisition company, or SPAC, Trump Media went public on the Nasdaq on March 26. In 2021, the merger was declared.
To the joy of his followers, Trump’s stock market debut was spectacular, with Trump Media shares rising sharply.
However, since then, prices have drastically changed.
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From its peak closure of $79.38 per share on March 26 to its lowest close of $22.84 on April 16, the stock price has fluctuated greatly. After the former president was found guilty on 34 felony counts, it began a weeks-long slide after rising significantly throughout Trump’s hush money trial.
It wasn’t until a week before the debate that the declining trend stopped.
A meme stock was considered by Trump Media
The parent firm of the social app Truth has been likened to AMC and GameStop. Trump Media is overvalued in relation to its peers, or other social media companies, at least by traditional Wall Street criteria, much like these common meme stocks.
According to a purportedly unaudited statement from May, Trump Media had a net loss of $327.6 million for the first quarter of 2024 on revenue of $770,500. According to regulatory records, the business lost more than $58 million in 2023 despite only bringing in over $4 million in revenue.
