Trump Media Shares Fall Below $18, Reaching New Low for First Time

On September 3, shares of Trump Media and Technology Group experienced a significant decline, reaching a new low for the first time since they began trading publicly in March. The stock, which operates under the ticker “DJT” and is associated with former President Donald Trump’s Truth Social platform, fell to $17.89 during midday trading before closing the day at $18.08, representing a 7% drop.

The market value of Trump Media has seen a staggering decrease of nearly 70% since its debut on the Nasdaq earlier this year. Notably, the stock fell below the $20 mark for the first time just days earlier on Friday.

Observers note that the stock’s performance is less connected to traditional market trends and more aligned with public sentiment towards Donald Trump, who is a Republican presidential nominee. This phenomenon gives the stock a nature similar to that of meme stocks, where emotions and public perception drive price fluctuations over concrete business metrics.

A particularly noteworthy moment occurred in July when Trump survived an assassination attempt. Following this event, the stock surged by approximately 30%, peaking at $42 a share, but it still remained significantly lower than its highest point of $62 earlier in the year.

In regulatory filings, Trump Media has acknowledged that its success is heavily dependent on the reputation and popularity of Donald Trump. They indicated that any detrimental publicity linked to Trump or a potential loss of his influence could significantly impact the company’s revenue and operational outcomes.

As it stands, Trump owns nearly 59% of the outstanding shares of DJT. However, a lockup agreement restricts him and other major shareholders from selling their shares until September 25. Speculation continues regarding Trump’s potential intention to sell, which could potentially yield him over $2 billion. However, analysts warn that such an action might instigate a broader selloff of the stock.

Trump Media has also faced challenges stemming from the former president’s recent legal troubles. Following his conviction on 34 counts of falsifying business documents aimed at concealing an alleged affair with an adult film actress, the stock saw a decline of almost 40% in June. Trump has denied any wrongdoing and maintains his innocence, with a sentencing scheduled for September 18.

In response to the ongoing drop in stock value, officials at Trump Media have attributed the decline to short sellers and stock manipulators. They have called for law enforcement to investigate and pursue criminal charges if any illegal short-selling activities are identified.

In June, the company revised its registration statement, advising investors that Trump may utilize other social media platforms beyond Truth Social. This update came after his significant following on TikTok, where he has amassed millions of followers.

The decline in stock performance, along with the looming expiration of the lockup agreement, has created an atmosphere of uncertainty surrounding the future of Trump Media and Technology Group.