Shares of Truth Social-parent Trump Media & Technology cratered Wednesday following Tuesday's presidential debate between former President Donald Trump and Vice President Kamala Harris. That signals investor sentiment that Trump underperformed in the televised contest between the two candidates. DJT stock on Friday ended its 14% slide since the debate.
Pundit consensus gave the edge in the ABC-hosted presidential debate to Harris and the downward move by Trump stock DJT Wednesday appears to support that sentiment. The Trump-Harris debate Tuesday didn't cover tax policy, perhaps the issue of most importance to financial markets.
The Donald Trump stock sank 10.5% to 16.68, falling as low as 15.30, Wednesday, hitting a new post-SPAC low. Trump Media shares then on Thursday added to their slide, dropping 3.6% to 16.08.
DJT shares jumped 11.8% to 17.97 during market action on Friday, ending the week up more than 5% despite their losses Wednesday and Thursday.
The Trump stock often trades as a sentiment indicator toward the former president and his current candidacy.
Prior to the presidential debate Tuesday night, DJT shares gained nearly 9% early in the week, closing on Tuesday at 18.63.
The Donald Trump brand and the value of DJT stock are closely related, as Truth Social launched after then-Twitter shut down Trump's account following the Jan. 6, 2021, riot at the U.S. Capitol.
The former president holds a 65% stake in Trump Media, worth several billion dollars based on the current stock price.
The company reported in August another quarter of sub-$1 million revenue. Meanwhile, Trump also made his return to X, formerly Twitter, on Aug. 12 with a conversation with Elon Musk. Prior To Wednesday action, DJT shares tumbled 25% since then as Trump has repeatedly posted on the social media site since then. The former president had previously sworn he would not return to X and would remain on Truth Social.
Donald Trump Stock On The Decline
Trump Media jumped more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump's tech and social-media platform on March 22. The special purpose acquisition company stock had rallied 35% on the day before the change to "DJT."
DWAC took Trump Media and Technology Group, or TMTG, public in a reverse merger. After a prolonged battle, DWAC stockholders voted in favor of the special purpose acquisition company's merger with TMTG. Trump Media is the parent of the conservative social-media platform Truth Social.
DJT shares have now dropped about 70% since their conversion. In 2024, DJT/DWAC has advanced around 3%.
DJT shares hit a short-term high of 46.27 on July 15 following the Trump assassination attempt. Trump's lead in the polls peaked soon after, with President Joe Biden dropping out of the 2024 race.
Since hitting that high on July 15, the Trump stock has fallen 61%.
Please follow Kit Norton on X @KitNorton for more coverage.
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