Following a turbulent month marked by significant volatility, the shares of Trump Media & Technology plummeted 3.5% during today’s trading session, reaching a new record low.
The decline in value adds to a consistent downward trend over the past four weeks, during which the stock has lost 36% of its worth. This decline has primarily been influenced by disappointing quarterly financial results and the decision by the former president to return to his erstwhile rival platform, X.
Launched in 2022, Truth Social was intended as an alternative to Twitter, now rebranded as X, providing a platform for users to post “truths” and share others’ posts through “retruthing.” It quickly became a central hub for the former president’s supporters following his departure from office.
Investors have been unsettled by the recent quarterly earnings, which fell short of expectations. Additionally, the announcement of Kamala Harris as the Democratic presidential candidate further dented confidence, with some retail traders perceiving this as diminishing the former president’s chances of a political resurgence.
Commentators have suggested that the company’s valuation is heavily influenced by external political factors rather than grounded in financial reality. Comparisons have been drawn to ‘meme stocks,’ where prices are driven up by fervent supporters rather than fundamental business metrics.
The recent downturn in Trump Media’s share price underscores the company’s vulnerability to political developments and its tenuous financial grounding. The coming months will be crucial in determining whether the company can stabilise and regain investor confidence.
