Shares of Trump Media & Technology, the parent company of Truth Social, experienced a significant decline on Wednesday following Tuesday’s presidential debate between former President Donald Trump and Vice President Kamala Harris. This drop reflects a negative shift in investor sentiment, with many believing Trump did not perform well during the televised event.
Analysts widely agreed that Harris had the advantage in the debate, which was hosted by ABC. The trading activity observed early Wednesday, with Trump’s stock, DJT, sliding, seems to reinforce that view. Notably, the debate did not address tax policy, a key topic for the financial markets.
The stock saw a 10.5% decrease, falling to 16.68 and hitting a new post-SPAC low of 15.30 during Wednesday’s trading session. DJT is often seen as a gauge of sentiment toward Trump and his political aspirations.
Before the debate, DJT shares had climbed nearly 9% earlier in the week, closing at 18.63 on Tuesday. The brand’s value is closely tied to the former president, especially following the launch of Truth Social after Twitter banned Trump’s account post-January 6, 2021.
Trump owns a 65% stake in Trump Media, which is valued at several billion dollars based on current stock figures. However, the company reported another quarter of revenue below $1 million in August. Trump had also returned to X, formerly known as Twitter, for the first time on August 12, leading to a 25% decline in DJT shares since then, despite his prior promises to remain on Truth Social.
After its initial trading day on March 26, Trump Media’s stock surged over 16%, reaching an intraday high of 79.38, following its merger with Digital World Acquisition Corp. However, since that peak, DJT shares have plummeted by 68%. In the year leading up to 2024, the stock has only seen a 6.5% uptick.
DJT shares had reached a short-term high of 46.27 on July 15, coinciding with the aftermath of an assassination attempt on Trump, after which his polling numbers also rose. However, since then, the stock has fallen by 60%.