Trump Media shares fall to post-merger low, Dow extends losses

Former President’s Shares Donald TrumpThe social media company’s shares fell to their lowest point since its IPO on Monday. trading exist Nasdaq It’s been nearly five months since the merger.

Trump MediaThe company owns the Republican presidential candidate’s preferred social messaging platform Truth Societyin the final hour of trading, the stock price fell below $22.40 per share, down more than 3% for the day.

The stock’s previous low was trading below DJT Stock code: LME) first traded publicly in mid-April, when the company’s shares plummeted to $22.55 after a wild first-day surge.

The notoriously volatile stock’s downward trajectory over the past month has coincided with a series of major developments for Trump, who is both a majority owner of Trump Media and a major draw for Truth Social users.

The company’s stock price soared on July 15, the first trading day after Trump was virtually removed from office. Assassination At a campaign rally in western Pennsylvania.

Trump was formally nominated at the Republican National Convention two days later, further bolstering his momentum in the presidential showdown. Joe BidenAt that time he was Democratic candidate.

But when Biden dropped out of the race on July 21 and endorsed his vice president, Trump’s growing lead suddenly shrank. Kamala Harris to succeed him in the race to lead the party.

A historic turning point Betting Market‘Views on who will win in November. Harris is now preferred over Trump.

Trump media said Regulatory filings Its success has at least part to do with Trump’s popularity and reputation.

Some Trump supporters appear to view the company’s stock as a way to support the former president or bet on him winning a second term.

On August 9, Trump Media reported that the company had lost more than $16 million. Fiscal quarter As of June 30, revenue for the same period was only $837,000.

The company attributed about half of the loss to ongoing legal costs related to its merger with special-purpose acquisition company Digital World Acquisition Corp., which was delayed for more than two years after it was announced.

Despite its meager revenue, the company’s market value is now close to $4.5 billion, thanks to its stock price.

Trump owns nearly 59% of Trump Media’s outstanding shares, a stake worth more than $2.5 billion based on midday trading prices on Monday.

But he is prohibited from selling any shares until a six-month lockup ends on Sept. 25. It is unclear whether Trump plans to sell the shares when he has the opportunity.

Trump is bound by a licensing agreement that requires him to first post “non-political” social media posts on Truth Social.

But he is free to post political messages on any site without restriction, a right he has recently exercised by posting on X and TikTok, two social media giants with audiences far larger than Truth Social.

Trump August 12 Accept an interview Tesla CEO Elon Musk in a live broadcast on X, a social media site owned by Musk.

Trump has posted regularly on Twitter since the interview.