Jakub Bolzycki | Noor Photos | Getty Images
The stock price of Trump Media, whose major shareholder is former President Trump, fell to the lowest level since the founding of the parent company of Truth Social on Tuesday. Publicly traded March after the merger.
DJT The stock fell to $17.89 per share around noon on Tuesday. The stock’s previous low was set on August 28, when it hit $19.38 per share. Shares are down about 77% from a high of $79.38 per share on March 26 after Trump Media merged with a publicly traded special purpose acquisition company.
On Tuesday, Trump Media fell more than 8% in a single day, accompanying a decline in the broader market, especially technology companies. The Nasdaq was down 2.7% shortly before 2:00 pm ET, while the Dow Jones Industrial Average and S&P 500 were both down more than 1%.
DJT stock compared to the Nasdaq stock exchange over a six-month period.
But market trends may only partially explain Trump Media’s stock price decline.
That’s because the company’s stock often trades more like a meme stock than a traditional investment. It also ebbs and flows with the political fortunes of Republican presidential candidates.
For example, the stock surged after Trump survived an assassination attempt in July, coinciding with a surge in voter support for his presidential campaign and several high-profile endorsements.
Trump Media’s latest share price drop comes just weeks after Trump owned nearly 59% of DJT’s outstanding shares, allowing other company executives to profit from the share price decline. As of Tuesday, Trump’s stake was worth more than $2 billion.
Trump and other major shareholders are currently prohibited from selling their shares as the “lock-up agreement” expires on September 25. The stock price has been above $12 a share on 20 of the 30 trading days starting Friday.
Trump has not expressed interest in selling, but there is speculation that his various campaign expenses and litigation-related financial woes may influence his decision.
If Trump does take a payday, investor doubts about the company could intensify, potentially triggering a broader sell-off in the stock.
This is a developing story, please check back for updates.
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