Truth Social Parent Company Stock Hits New Low After Public Debut

Stock prices for the parent company of Donald Trump’s social media platform, Truth Social, reached a new low on the first day of the Democratic National Convention. The Trump Media & Technology Group closed at $22.24 on Monday, marking a decline of 3.56% from the prior close. This is the lowest closing price since the company’s public debut in March.

The previous low of $22.84 had been recorded on April 16, coinciding with the second day of Trump’s New York criminal trial, where a jury convicted him of 34 counts of falsifying business records.

Since mid-July, Trump Media, trading under the ticker symbol DJT, has experienced a continuous decline in stock prices. This drop occurs as the Trump campaign faces challenges in gaining traction against the Democrats’ new candidate, Vice President Kamala Harris. Earlier this month, the company revealed a staggering loss of over $16 million alongside revenues of less than $1 million for the second financial quarter.

Trump Media’s representatives did not respond to requests for comment regarding the stock performance.

Experts have likened Trump Media’s stock to a meme stock, arguing that its price fluctuations are largely influenced by retail investors’ collective actions and media attention.

The company was established in 2021 after Trump was banned from other social media platforms following the January 6 riot at the U.S. Capitol. It went public in March through a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Despite a high-profile launch, the stock has seen erratic price changes that often mirror the swings in Trump-related news this year.

Analysts have indicated that the stock is overvalued by traditional Wall Street standards when compared to other social media firms.

In a filing from May, Trump Media reported a net loss of $327.6 million for the first quarter of 2024, while bringing in $770,500 in revenue. More recently, in August, the company disclosed losses exceeding $16 million, alongside revenues dropping below $1 million for the second financial quarter. Regulatory filings indicate that the company operated at a loss throughout 2023, generating approximately $4 million in revenue while incurring losses totaling more than $58 million.

The ongoing financial struggles of Trump Media seem to reflect broader challenges faced by the Trump campaign and its attempts to gain ground in a shifting political landscape. As the stock continues to dip, market analysts will be observing whether the company’s fortunes can shift in the coming months, or whether the downward trend will persist in light of the electoral challenges ahead.

As the Democratic National Convention unfolds and the political climate intensifies, the performance of Trump Media’s stock may offer insights into the financial implications of the campaign developments and public perception of the platform.

Overall, Trump’s social media venture seems to be encountering considerable obstacles that could affect its future viability and relevance in a rapidly changing digital landscape.