Stocks in Trump Media & Technology Group (DJT), majority-owned by former President Donald Trump, have plummeted to record low levels. This decline comes as the Republican presidential candidate returns to the rival social media platform X (formerly Twitter), coinciding with his diminishing lead in polling ahead of the upcoming presidential election.
On Tuesday, shares dropped as low as $21.33, falling over 4%, and closed the day at a decrease of 3.7% at $21.42. This marks the eighth consecutive month of losses for the stock. The decline in Trump Media’s share price reflects not only the company’s current challenges but also Trump’s waning popularity among voters and in betting markets regarding the election.
“I have always viewed Truth Social (the company’s social media platform) and DJT as a voting mechanism rather than an investment mechanism,” stated Lou Basenese, president and chief market strategist at MDB Capital in New York. “The valuation has never made sense relative to the fundamentals.”
Earlier this month, Trump Media, which primarily operates the Truth Social app, reported a quarterly loss of $16.4 million and a revenue of only $837,000. The company currently has a market value of about $4.3 billion, down from over $8 billion earlier this year.
The stock reached an all-time high of $79.38 upon its debut on the Nasdaq on March 26, following a merger with the blank-check company Digital World Acquisition Corp. Trump is expected to begin selling his nearly 60% stake—equating to 114.75 million shares—in his social media company when the insider lockup period expires next month.
“It has always been about how his chances of winning or losing are perceived, and that’s what we see now as the race tightens, and the probability of him winning has narrowed. I believe it’s hitting record lows also because we are approaching the insider lockup,” Basenese added.
Trump began posting on the X platform last week for the first time in nearly a year, in connection with an interview with owner Elon Musk. In recent weeks, Trump has lost his substantial lead over Vice President Kamala Harris, the Democratic candidate, in polling.
With 78 days remaining until the November 5 election, contracts for a Harris victory are trading at 56 cents, with a potential payout of $1 on the PredictIt political betting platform. Trump contracts are now down to 46 cents, a drop from as high as 69 cents in mid-July.