As if it was Trump’s fault, media is painting the story as follows…
The stock price of Trump Media plummeted by more than 13% on Wednesday, following a widely criticized debate performance by Donald Trump against Vice President Kamala Harris. The drop marked the lowest intraday level for the Truth Social app owner’s stock, traded under the ticker DJT, since it went public on Nasdaq in March.
Trump Media’s stock price slides after Donald Trump and Kamala Harris debate. https://t.co/zwMlCjG5aZ
— CBS News (@CBSNews) September 11, 2024
Trump Media’s stock is often seen as a barometer of the former president’s political fortunes. The company has acknowledged that its business depends in part on Trump’s popularity, and analysts have suggested that its stock value is closely tied to his electoral prospects. Following Tuesday night’s debate, where political commentators on both sides agreed that Harris appeared more poised and prepared than Trump, the stock’s decline may signal dissatisfaction among some of his supporters.
The debate, held in Philadelphia, saw Trump frequently sidetracked by Harris, who remained composed and on message. Her campaign, buoyed by confidence after the debate, quickly challenged Trump to a rematch, though Trump has expressed hesitation about agreeing to another face-off.
Prior to the debate, Trump Media’s stock had surged by as much as 10% during trading on Tuesday, possibly reflecting optimism that Trump would perform well. This brief rally provided some relief for the company’s stock, which had suffered significant losses over recent weeks, falling by as much as 75% from its highs in late March, shortly after the company merged with a blank-check firm.
Adding to the uncertainty surrounding Trump Media’s stock is the timing of a lock-up agreement that lifts on September 19, allowing Trump and other insiders to sell their shares. Trump holds a 57% stake in the company, valued at approximately $1.8 billion based on Wednesday’s stock price. It remains unclear whether Trump plans to offload any of his shares once the lock-up period expires.
$DJT Trump media stock chart, hahahaha.
This is your beloved business magnate?! pic.twitter.com/O1d44yoL0c— OptionsMan (@Optionsoften) September 11, 2024
The stock’s decline also coincided with a major shift in the political landscape, as President Joe Biden dropped out of the presidential race and endorsed Harris as the Democratic nominee. This endorsement could have further impacted investor confidence in Trump Media, with the anticipation of a potentially competitive general election.
As Trump Media prepares for the possibility of more volatility in the stock market, much will depend on Trump’s political performance and how his media company navigates the challenges ahead.
Key Points:
i. Trump Media’s stock fell by more than 13% following Donald Trump’s debate performance against Vice President Kamala Harris.
ii. The company’s stock is closely tied to Trump’s political prospects, and dissatisfaction among his supporters may have contributed to the decline.
iii. Trump Media saw a brief surge in stock prices before the debate, but it has been in a downward spiral, losing up to 75% of its value since March.
iv. Trump holds a 57% stake in the company, valued at around $1.8 billion, with a lock-up period expiring on September 19, allowing him to sell shares.
v. The stock drop comes as President Joe Biden exited the race and endorsed Harris, adding uncertainty to Trump’s media and political future.
Lap Fu Ip – Reprinted with permission of Whatfinger News
