Shares of Trump Media & Technology Group (DJT), majority-owned by former President Donald Trump, have hit record lows with Trump’s return to rival social media platform X and his declining lead in polls for the upcoming presidential election. The stock dropped to $21.42, down over 4 percent, marking the eighth consecutive session of losses.
Some retail traders view DJT stock as a bet on Trump winning a second term, with recent polls and election betting markets impacting its value. The Truth Social app, Trump Media’s main asset, reported a quarterly loss of $16.4m with revenue of $837,000. The company’s market value has declined from over $8 billion to $4.3 billion.
Trump’s nearly 60 percent stake in the company, including 114.75 million shares, will be available for cashing out when the insider lockup period expires next month. Analysts believe the stock’s performance is tied to Trump’s odds of winning the election, which have narrowed as his lead in polls decreases.
Recently, Trump has lost ground against Vice President Kamala Harris in polls, with PredictIt showing contracts for a Harris victory trading at 56 cents compared to Trump’s 46 cents. Trump’s posts on X last week and an interview with Elon Musk have coincided with the stock’s decline.
With the election approaching on November 5, the outcome remains uncertain, and DJT stock is likely to continue to fluctuate based on Trump’s electoral prospects. As the race tightens, investors are closely watching both the polls and the stock to gauge the likelihood of Trump securing a second term.
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