Shares of Trump Media & Technology, the parent company of Truth Social, experienced a significant decline on Wednesday following the presidential debate between former President Donald Trump and Vice President Kamala Harris on Tuesday. This drop suggests that investors believe Trump did not perform well in the debate.
Analysts generally favored Harris during the ABC-hosted debate, and the dip in Trump’s stock price on Wednesday aligns with that assessment. Notably, the debate did not address tax policy, a crucial topic for financial markets.
On Wednesday, DJT shares fell by 10.5%, closing at 16.68, with intraday lows reaching 15.30, marking a fresh low since the stock’s debut following its SPAC merger.
DJT is often viewed as a barometer of sentiment toward Trump and his presidential campaign. Ahead of the debate, DJT shares had risen nearly 9%, closing at 18.63 on Tuesday.
The financial health of the Trump brand is closely tied to the performance of DJT stock, especially after the launch of Truth Social, which came after Trump’s account was suspended by Twitter following the January 6, 2021, events at the Capitol.
Trump retains a 65% ownership stake in Trump Media, which is now valued in the billions based on current stock prices. However, the company reported revenues of less than $1 million in the most recent quarter. Meanwhile, Trump made a return to X (formerly Twitter) on August 12, engaging in a conversation with Elon Musk, but since then, DJT shares have plummeted by 25%, despite Trump announcing he would remain solely on Truth Social.
Since its initial public offering on March 26, when DJT shares surged over 16% to a peak of 79.38, the stock has seen dramatic fluctuations. This followed the merger of Digital World Acquisition Corp. with Trump Media & Technology Group. Following the merger approval by DWAC stockholders, DJT shares have now decreased by 68%, though they have risen by 6.5% year-to-date.
The stock reached a brief peak of 46.27 on July 15, shortly after an assassination attempt on Trump, but has since dropped 60%.