Shares of Donald Trump's media company, Trump Media & Technology Group (DJT), have seen a significant decline, losing 69% of their value since the company was listed in March 2024.
DJT Shares Drop 69%
According to Bloomberg, shares of Donald Trump's media company have sharply declined by 69% ahead of the end of the lockup period from its blank-check deal. This means that after the lockup period expires on September 19, founders and company insiders can sell their shares, potentially leading to further price decreases. In May, the market capitalization of the company peaked at $10 billion, but has since fallen to under $3.4 billion.
Trump's Return to X
Another reason for the stock decline could be Donald Trump's return to the social platform X (formerly known as Twitter). This has shifted attention away from Truth Social, owned by DJT. Truth Social has failed to boost the company’s revenues amid increasing losses. Trump's personal stake has decreased from $6 billion to $2 billion. Negative market sentiments also stem from speculation that Trump might further reduce his stake.
Current Financial and Political Competition
Adding to the company’s struggles, Trump Media reported a 30% drop in Q2 revenue to $836,900, and recorded a $16.4 million loss. Political competition also plays a role. According to a YouGov poll, there is a tight race between Trump and Vice President Kamala Harris in key swing states. The polls show Harris leading in states like Michigan and Nevada, while Trump maintains a narrow edge in three states.
The future of Trump Media & Technology Group remains uncertain amid financial difficulties, political competition, and the potential exit of Donald Trump from the business. Investors continue to monitor the situation as the market remains tense.
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