Trump's media stocks reach record highs amid Trump's return to X, polls falling
Date
8/21/2024 9:03:19 AM
(MENAFN) On Tuesday, shares of Trump Media and technology Group, which is predominantly owned by former U.S. President Donald Trump, fell to record lows following Trump’s recent reappearance on the rival social media platform X. The stock dropped to USD21.33, marking a decline of over 4 percent, and ended the day at USD21.42, reflecting an ongoing trend of losses over the past eight sessions. This decline in stock value has been exacerbated by Trump's decreasing standing in both polls and election betting markets, as some traders view the company's shares as a speculative bet on Trump's chances of securing a second presidential term.
The stock had previously reached an all-time high of USD79.38 on March 26, following its merger with the special purpose acquisition company Digital World Acquisition Corp., which brought it to the Nasdaq. However, the recent downturn is also attributed to Trump Media's latest financial performance, which reported a substantial quarterly loss of USD16.4 million despite modest revenue of USD837,000. The company's market capitalization has plummeted to approximately USD4.3 billion, a significant decrease from over USD8 billion earlier in the year.
Compounding these issues, Trump has recently resumed posting on X after a year-long hiatus, aligning with an interview with the platform's owner, Elon Musk. This move comes at a time when Trump has seen a notable decline in his poll numbers against Democratic candidate Kamala Harris, further impacting investor sentiment and contributing to the stock’s downward trajectory.
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