Shares of Trump Media & Technology, the parent company of Truth Social, declined significantly on Wednesday after a presidential debate the previous evening between former President Donald Trump and Vice President Kamala Harris. This drop suggests that investors believe Trump did not perform well during the debate.
Analysts widely favored Harris in the ABC-hosted debate, and the response in the stock market appears to align with that assessment. Notably, the debate did not address tax policy, a crucial topic for financial markets.
The stock of Trump Media fell 10.5%, closing at 16.68, with a low of 15.30 during trading on Wednesday, marking a new low since the company’s SPAC merger.
DJT stock often reflects sentiment towards Trump and his ongoing campaign efforts. Prior to the debate, shares gained nearly 9% this week, finishing the day before the debate at 18.63.
The valuation of DJT stock is closely tied to Trump’s brand, especially since the launch of Truth Social, which came after Twitter banned Trump’s account in the wake of the January 6, 2021, Capitol riot.
Trump, who owns a 65% stake in Trump Media, has a stake now estimated to be worth several billion dollars at current stock values. The company reported under $1 million in revenue for another quarter as of August. Trump also made headlines by returning to X, formerly Twitter, on August 12, leading to a 25% drop in DJT shares since that time, despite his previous claims about exclusively using Truth Social.
Trump Media’s stock had its market debut under the DJT ticker on March 26, increasing over 16% on the first trading day, reaching a high of 79.38. This followed the merger with Digital World Acquisition, which enabled Trump Media to go public. The special purpose acquisition company had previously seen its shares rise by 35% the day before the name change.
Since gaining public status through this reverse merger, DJT shares have decreased by 68%, but are up 6.5% in 2024. After a high of 46.27 on July 15, following an assassination attempt against Trump, shares have since fallen 60%.
For more updates, you can follow Kit Norton on X @KitNorton.