Daily Washington Insider
  • Business
  • World
  • Science
  • Investing

Daily Washington Insider

  • Business
  • World
  • Science
  • Investing
Business

Trump Media stock sinks to new post-merger low

by admin August 21, 2024
August 21, 2024
Trump Media stock sinks to new post-merger low

Shares of former President Donald Trump’s social media company on Monday touched their lowest price since they began public trading on the Nasdaq nearly five months ago after a merger.

Trump Media, the company that owns the Republican presidential nominee’s preferred social messaging platform Truth Social, closed down more than 3.5% to settle at $22.24 a share.

The previous low point for the stock, which trades under the DJT ticker, was in mid-April when the price plummeted to $22.55 following the company’s slingshot rise in its frenzied public trading debut.

The notoriously volatile stock’s downward trajectory over the past month coincided with a swirl of seismic developments for Trump, who is both the majority stakeholder of Trump Media and a main draw for Truth Social users.

The share price surged on July 15, the first trading day after Trump was nearly assassinated at a campaign rally in western Pennsylvania.

Trump was formally nominated at the Republican National Convention two days later, bolstering the momentum he had already built up against President Joe Biden, who at the time was the presumptive Democratic nominee.

But Trump’s growing lead suddenly shrunk when Biden dropped out of the election contest on July 21 and endorsed Vice President Kamala Harris as his replacement to lead their party’s ticket.

The historic switch flipped betting markets’ views on who will win in November. Harris is now favored over Trump.

Trump Media has said in regulatory filings that its success is at least partly tied to Trump’s popularity and reputation.

Some Trump supporters seem to treat the company’s stock as a way to support the former president or bet on his chances of winning a second term.

On Aug. 9, Trump Media reported a loss of over $16 million for the fiscal quarter ending June 30, while posting just $837,000 in revenue in the same period.

The company attributed about half of its loss to ongoing legal expenses related to its merger with the 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 currently has a market capitalization of nearly $4.5 billion due to its stock price.

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

But he is free to post political messages on any site without restriction — and he has recently exercised that ability by posting on X and TikTok, two social media giants whose audiences dwarf Truth Social’s.

Trump on Aug. 12 was interviewed by Tesla CEO Elon Musk in a livestream on the social media app X, which Musk owns.

Trump has periodically posted on X, formerly known as Twitter, since the interview.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
GM lays off more than 1,000 salaried software and services employees
next post
Top 10 Potash Countries by Production (Updated 2024)

You may also like

PepsiCo buys prebiotic soda brand Poppi for nearly...

March 18, 2025

Bruce Nordstrom, who helped grow family-led department store...

May 20, 2024

Amazon makes first foray into live news with...

October 19, 2024

Robinhood app says SEC dismissed crypto investigation in...

February 25, 2025

Two plead guilty to insider trading related to...

April 4, 2024

Getty Images to buy Shutterstock as part of...

January 9, 2025

Disney wins the 2024 box office as year-end...

January 16, 2025

OpenAI considering 16 states for data center campuses...

February 8, 2025

Digital health companies pummeled by Wall Street in...

December 27, 2024

Air travel demand is breaking records. Airline profits...

July 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Tartana Drilling to Verify Upgrading of 45,000 Tonne Copper Resource

    • 2

      Hong Kong plans to install thousands of surveillance cameras. Critics say it’s more proof the city is moving closer to China

    • 3

      Magic mushrooms effective for treating depression – study

    • 4

      UN experts urge Thailand not to deport dozens of Uyghurs to China where they face ‘real risk of torture’

    • 5

      China executes man who plowed car into crowds in deadliest attack in a decade

    Categories

    • Business (1,276)
    • Investing (3,316)
    • Science (605)
    • World (3,677)
    Footer Logo

    Disclaimer: dailywashingtoninsider.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 dailywashingtoninsider.com | All Rights Reserved