US Markets
Wednesday, September 11th, 2024 4:03 pm EDT
Key Points
- Trump Media’s stock dropped over 13% after Donald Trump’s poorly received debate performance against Vice President Kamala Harris, marking its lowest level since going public in March.
- The company’s stock is closely tied to Trump’s political fortunes, with analysts suggesting its value fluctuates based on his electoral prospects.
- Investors are preparing for September 19, when Trump and other insiders will be allowed to sell shares, with Trump holding nearly 57% of the company’s stock, valued at around $1.8 billion.
On Wednesday, Trump Media’s share price plunged by over 13%, marking its lowest level since the company, which owns Truth Social, began trading publicly in late March under the ticker DJT on the Nasdaq. The drop in stock price came a day after Donald Trump, the majority shareholder of the company, delivered a widely criticized debate performance against Vice President Kamala Harris during their presidential debate. This decline reflects a potential shift in investor sentiment, as Trump Media’s stock is often seen as a way to invest in the former president’s political fortunes. Trump’s popularity has a significant impact on the company’s business value, with analysts highlighting that the company’s stock price will likely rise or fall based on his electoral prospects.
During the debate, Trump was perceived by many political commentators, both liberal and conservative, as being less prepared and less composed than Harris, who delivered a more articulate and balanced performance. Harris effectively threw Trump off-topic several times during the exchange, leading to a general consensus that she came out on top. Following the debate, Harris’ campaign projected confidence by challenging Trump to another debate, though Trump hinted that he may not agree to a second round.
Interestingly, before the debate, Trump Media’s stock had surged by as much as 10% during Tuesday’s trading, reflecting optimism from investors about Trump’s potential performance. The company had experienced gains earlier in the week, marking a brief recovery from a prolonged slump that had seen the stock fall by as much as 75% from its intraday high in late March, following Trump Media’s merger with a blank-check company. These gains were short-lived, however, as the stock quickly reversed course after the debate, indicating that some of Trump’s supporters may have been disappointed with his performance.
The stock price decline also coincided with recent political developments, including President Joe Biden’s decision to drop out of the presidential race and endorse Kamala Harris to lead the Democratic ticket. This change in the political landscape has added to the uncertainty surrounding Trump’s electoral prospects and may have contributed to the further slump in Trump Media’s share price. Additionally, investors are preparing for an important date on September 19, when Trump and other insiders will be able to sell their shares in the company for the first time. Trump, who owns nearly 57% of the company’s stock, has not yet indicated whether he plans to sell off his stake once the lock-up agreement lifts. At Wednesday’s stock price, Trump’s stake is valued at approximately $1.8 billion.
This recent drop in stock value highlights the close ties between Trump Media’s financial performance and Donald Trump’s political standing. As Trump’s fortunes in the political arena fluctuate, so too does the company’s stock price, making it a barometer of his public and electoral popularity. Investors in Trump Media will likely continue to keep a close eye on his political activities, debates, and overall campaign strategy as key indicators of the company’s future stock performance.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/09/11/djt-trump-media-stock-debate-harris.html
