Since its Nasdaq debut nearly five months ago following a merger, shares of Trump Media, the company behind former President Donald Trump’s favorite social media platform, Truth Social, have hit their lowest point. The stock was trading under the ticker DJT at just under $22.40 a share on Monday, down more than 3% by the close.
The stock previously hit a low of $22.55 in mid-April, shortly after a rapid rally following its initial launch. The stock is known for its volatility, and its recent decline is in line with significant developments involving Trump, who not only holds a majority stake in Trump Media but also serves as a major draw for Truth Social users.
The stock had seen a significant increase on July 15, the first day of trading after an assassination attempt on Trump at a campaign rally in Pennsylvania. The incident occurred shortly before his formal nomination at the Republican National Convention, where he had run against then-presumptive Democratic nominee President Joe Biden.
However, Trump’s momentum was halted when Biden dropped out of the presidential race on July 21, endorsing Vice President Kamala Harris as the Democratic front-runner, dramatically shifting betting markets’ predictions for the November election in Harris’ favor.
Trump Media’s financial health appears to be strained, as evidenced by a reported loss of more than $16 million for the quarter ended June 30, coupled with modest revenue of $837,000. The company attributed about half of those losses to ongoing legal costs stemming from its merger with Digital World Acquisition Corp., a process that has faced delays lasting more than two years.
Despite these financial challenges, Trump Media’s market valuation remains substantial at nearly $4.5 billion, according to its latest stock price. Trump himself holds nearly 59% of the company’s outstanding shares, valued at more than $2.5 billion, according to the latest trading data. However, a six-month lockup period prevents any immediate sale of its shares, with the period set to expire on September 25.
Trump remains active on multiple social media fronts, bound by a licensing agreement that dictates that his initial posts on Truth Social be apolitical, though he retains the freedom to engage politically on other platforms. His recent activities include a live interview on Elon Musk’s Platform X and subsequent posts there, demonstrating continued engagement with a broader digital audience.