Trump Media’s shares nosedived by over 15% on Thursday, intensifying a downward spiral for the company helmed by former President Donald Trump. The conservative social media venture, Truth Social, listed under DJT on Nasdaq, staggered to around $27 per share at the market’s opening, marking a stark 40% decline from its robust $49 valuation just weeks ago.
This drastic slide dealt a staggering blow to Trump, the principal stakeholder in Trump Media. His 114,750,000 shares, valued at over $5.6 billion in early June, now scrape by at $3.2 billion, underscoring the severity of the collapse.
The company’s troubles mounted since May 30, following Trump’s conviction on 34 counts of falsifying business records in New York. The negative trajectory accelerated on Tuesday, coinciding with a crucial deadline tied to the Securities and Exchange Commission’s anticipated approval of its registration statement.
During Tuesday’s session, the stock plummeted nearly 10%, trading at more than double the usual volume, while after-hours trading saw an additional 17% nosedive after Trump Media disclosed the SEC’s green light on its registration statement. This clearance authorizes early investors to exercise their warrants and permits stockholders to publicly unload securities outlined in the registration.
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As noted by CNBC, Trump Media’s relentless decline paints a grim financial portrait, amplifying the company’s tumultuous journey amidst legal setbacks and market turbulence.
