Downtrend: Understanding the 39% Drop in Trump Media Share Price

Money | June 18, 2024, 10:23 p.m.

Shares of Trump Media & Technology Group, Donald Trump’s social media company, have been on a steep decline since the former president was found guilty on 34 felony counts. The stock, trading under the ticker “DJT,” has plummeted by 39% since the guilty verdict. On Tuesday, it closed down 10% at $31.31. The company's viability hinges heavily on the Trump brand and his loyal following, with little revenue to show for. Trump Media faces challenges with its flagship platform, Truth Social, amid disagreements with its majority shareholder. Additionally, the company is grappling with short sellers manipulating the stock. Despite plans to offer more shares and the looming end of Trump’s lock-up period, the future of Trump Media remains uncertain as it struggles to compete with major social media platforms.