Trump Media and Technology Group Shares Plummet Amid Donald Trump's Fading Poll Lead

Strategic Insights -

Shares of Trump Media and Technology Group (DJT.O), majority-owned by former US President Donald Trump, have sunk to record lows in recent days, with the stock dropping as low as $21.33, a decline of over 4 percent. This decline follows Trump's recent return to rival social media platform X, as well as his dwindling lead in polls and election betting markets. Trump Media shares have been seen by some retail traders as a bet on whether Trump would win a second term, with the stock's value closely tied to his odds of winning or losing.

Key Takeaways:

  • Trump Media and Technology Group shares dropped to a record low of $21.33, a decline of over 4 percent, following Trump's return to rival social media platform X.
  • The stock finished down 3.7 percent at $21.42, marking the eighth consecutive session of losses.
  • Trump's dwindling lead in polls and election betting markets has also hit the stock, with his contracts on the PredictIt politics betting platform trading at 46 cents, down from as much as 69 cents in mid-July.
  • Trump Media reported a quarterly loss of $16.4 million and revenue of just $837,000, with a market value of about $4.3 billion, down from over $8 billion earlier this year.
  • The company's main asset is the Truth Social app, and Trump is expected to be eligible to begin cashing out his nearly 60 percent stake or 114.75 million shares when the insider lockup period expires next month.
  • Lou Basenese, president and chief market strategist at MDB Capital in New York, stated that the valuation of Trump Media never made sense in relation to the fundamentals, and that the stock has been traded in line with Trump's odds of winning or losing.
  • The company's quarterly revenue was $837,000.
  • The stock had reached an all-time high of $79.38 during their Nasdaq debut on March 26 following a merger with blank-check company Digital World Acquisition Corp.
  • Trump is expected to be eligible to begin cashing out his nearly 60 percent stake or 114.75 million shares when the insider lockup period expires next month.

Statistics:

  • 4 percent: the decline in Trump Media shares in recent days
  • 21.33: the record low price of Trump Media shares
  • 3.7 percent: the decline in Trump Media shares at the end of the day
  • 46 cents: the current price of Trump's contracts on the PredictIt politics betting platform
  • 69 cents: the high price of Trump's contracts on the PredictIt politics betting platform in mid-July
  • $16.4 million: the quarterly loss of Trump Media
  • $837,000: the quarterly revenue of Trump Media
  • $4.3 billion: the market value of Trump Media
  • 60 percent: the percentage of Trump's stake in Trump Media
  • 114.75 million: the number of shares Trump is expected to be eligible to cash out
  • 78 days: the time remaining until the Nov. 5 vote

Sources:

  • Trump Media and Technology Group
  • Digital World Acquisition Corp.
  • MDB Capital
  • PredictIt politics betting platform
  • PredictIt