Shares in Trump's Truth Social fall following presidential debate
Sept. 11, 2024, 5:21 p.m.
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Shares in former President Donald Trump's social media company dropped by more than 12% Wednesday morning. This followed Tuesday's presidential debate, where a CNN poll indicated that Vice President Kamala Harris emerged victorious.
Shares of Trump Media & Technology Group, the parent company of Truth Social, were trading Wednesday at their lowest point since the company went public -- a decline of over 70% from their closing high of $66.22 on March 27.
As of noon, the company's shares were selling for $16.29.
For some investors, Trump Media serves as an indicator of the former president's chances in the upcoming presidential election. When Trump was convicted on 34 felony counts in New York in May, the company's stock price declined -- but the stock rose in the days following the July presidential debate and the assassination attempt on the former president.
Analysts have stated that the company's stock performance is independent of the company's financial outlook , which reported a loss of over $16 million for the three-month period ending in June, during which they only generated $836,000 in revenue.
The stock price has been bolstered by a considerable number of ardent individual investors who acquired shares in the company to show their support for Trump or because they believe in the company's mission.
presidential debate with Democratic presidential nominee Vice President Kamala Harris, Sept.10, 2024, in Philadelphia.
Next week, Trump faces a crucial decision regarding his investment in the company. The lockup agreement that prohibited him from selling his shares for the first six months after the company went public expires next week. This means that Trump could potentially start selling his shares in the company as early as September 19th.
According to filings with the Securities and Exchange Commission, Trump owns roughly 115 million shares of the company, currently valued at close to $2 billion based on Wednesday's stock price.
On paper, Trump's stake in the company has decreased by over $4 billion in the last six months as the company's stock price has dropped.
A representative for Trump Media & Technology Group did not immediately respond to a request for comment from
.
