Trump Media shares hit record low as race tightens for former US president
Al Jazeera
The stock is seen by some retail traders as a bet on whether Trump would win a second term as US president.
Shares of Trump Media & Technology Group (DJT), which is majority-owned by former United States President Donald Trump, have sunk to record lows following the Republican presidential candidate’s recent return to rival social media platform X and his dwindling lead in polls for the upcoming presidential election.
Trump Media shares dropped on Tuesday to as low as $21.33, down more than 4 percent. The stock finished down 3.7 percent at $21.42, marking the eighth consecutive session of losses.
Trump’s dwindling lead in the polls and election betting markets in recent weeks has also hit the stock, which has been seen by some retail traders as a bet on whether Trump would win a second term.
“I’ve always looked at Truth Social and DJT as a voting mechanism versus an investment mechanism,” said Lou Basenese, president and chief market strategist at MDB Capital in New York. “The valuation never made sense in relation to the fundamentals.”
Earlier this month, Trump Media – whose main asset is the Truth Social app – reported a quarterly loss of $16.4m and revenue of just $837,000. The company has a market value of about $4.3bn, down from more than $8bn earlier this year.
